That is somewhat unusual, although I've seen contracts vaguely similar entered into involving family members.

But, Zillow shows a different ad for that prop, a public trustee foreclosure auction taking place this week. http://www.zillow.com/homedetails/1-Chuckwagon-Rd-Rolling-Hills-CA-90274/21355374_zpid/

Mass, no one was doing any bashing. Few properties are offered with a lifetime tenant in that price range - in my experience at least. It's a listing many of us would find odd, Houzz or otherwise, has nothing to do with your personal feelings about your own listing.

That is a beautiful area here in Southern California. Wish I could afford it! Sorry for the old man that owns it. Facing Foreclosure. Sad. Could someone explain what a Life Estate is? Not familiar with that term.

morz8 - I've seen that several times on both zillow and auction.com, but it obviously isn't sold.

I don't understand how the seller can expect to get someone to pay over a million for a house and not take possession, for at minimum 10 years. I suspected someone elderly lived in the house, it looks very unkempt but at age 73? He could live there for years with a life estate. The realtor isn't local, I guess it is worth the agent's time to take the listing and put it on the MLS.
I can't tell if the house is a tear-down or not. If a tear-down, its not worth $1.8mil, if salvageable, who would buy it at any price and let the present owner continue to live in it and let it deteriorate more. The house is in a substandard location on a smallish lot. I will probably never know the story behind this house but I keep watching trying to see some value and am interested to see how others, possibly an investor value it. For the surrounding homeowners I hope it gets a new owner who will improve it, right now it is an eyesore.

A life estate gives him the right to live in the house for his lifetime. I kind of feel bad for him, but how did he manage to owe $1mil on the house? The public record shows he paid less than $200K for it. I appears there was a time he could have sold and walked away with something, letting it go to foreclosure, he probably walks away with nothing. If he listed it now for much less with no life estate or 10 year lease, he might sell and walk away with $500K.

There could be something we don't know like lines of credit or other liens. Hard times happen. Could have had an ill wife with many hospitalizations. He himself could be ill. The public auction is tomorrow.

Zillow's price history tells a story. I don't think I have ever seen so many pending/back on market the next day entries!

Wonder if he/his family attempted a reverse mortgage and were rejected?

There was a movie about this recently, with Kevin Kline, set in France. He inherited the house, and had to pay a. I they fee to the woman who previously owned it until her death, when he could move in.

Zillow shows the auction.com as priced at $775K, that would be a really low price. I think it may have given it lots of action, but now it shows over $1mil. I'm guessing it doesn't get sold at auction tomorrow, it has shown auction dates for months but it never moves forward, as I said, strange listing. I would guess at $1mil, there would be a buyer, I don't get it. The auction price might be a junior lien, that may be why the MLS is higher. Or the owner might be very unreasonable and found an agent to deal with him.
I just wish someone would take it over an clean it up, I feel bad for the neighbors living near by.

Rolling Hills, CA is expensive. Teardown houses on 1+ acre near Rolling Hills Country Club could easily be multiple millions. Probably way over $1000/month Association fee. Water bill is probably $1000 month.

An investor might be willing to pay $1M and let him live there until death or 10 years but not sure about close to $2M. Perhaps owner is desperate to continue to live in the house and hoping for the right buyer.

I agree that Rolling Hills is a pricey area. If the house went up for auction today, I wonder what it went for. The buyer will have to evict the old owner, and that might not be easy.