Utterly Meaningless » Blog Archive » MELTDOWN

    Filed at 1:59 pm under by dcobranchi

    CNN has a story about some ridiculous price declines on homes in CA:

    Next door to the Lepleys are Frank and Leslie Aceves. They are in the midst of a different situation. They are trying to “short sell” their house in order to avoid foreclosure and lose everything to the bank.

    The couple has two children, ages 10 and 3, and they bought their 3,500 square-foot home for $620,000 a few years ago. A house about the same size across the street recently went for $267,000.

    “We just didn’t think it would happen,” Leslie Aceves says of the massive drop in prices. “We just thought it would stop somewhere.”

    Neighbors Shane Latham and Kathy Valdez, a couple in their 20s, bought their house for $220,000 — nearly $300,000 less than what it was a couple of years ago. “We’ve got to feel for people,” Latham says.

    One Response to “MELTDOWN”

    Comment by
    April 5th, 2009
    at 1:38 am

    Who would want to live in the deert anyways? This is crazy. Ultimately it is the greed of builders, speculators and the rest of us who thought the RE bubble would grow forever.

    The sad bit is those who will ultimately pay the price are the blue collar workers who bought at teh peak. The developers, banks and other more sophisticated investors, have made their money, cashed out andare waiting to buy these toxic assets, they sold at a premium, for a few cents on the dollar.

    What a racket.