O.K., I’m crying “uncle”! You’re right about the Morgan Hill situation. I now can’t believe all the $#%&*@^ flippers that are walking away from their zero down, non-recourse loans. I didn’t want to buy here but couldn’t convince hubby the appreciation train was derailing. He’s now a convert, thanks to Pigginton and other blogsites, but we’re stuck here indefinitely, unless we want to give up >$100k of upgrades paid in cash. I sure wouldn’t touch anything out in French Valley. When a recovery occurs (in the distant future) Temecula will rally quicker than the outlying areas. Hey, you missed the opportunity to buy a single level Pegase Court cul-de-sac flipper REO in the Cristal tract, approx 2400 sq. ft. for $387k. (No worries though, it will be cheaper in 6 months when the next REO of that model comes to market). That Pegase house really burned us, as well as several neighbors, as we all paid between 445k and 475k for the identical non-upgraded house, depending on the phase. But we’re mostly empty nesters on this street and can afford to wait it out. But should we? Or should we just laugh off the $100K and get out of Dodge now?