Actually CONCHO, this exact thing just happened to a close friend. He lives in an area that peaked in 2005 at about $1.2M per house. It has many people in it that are well over 65. The house directly accross the street just did almost exaclty what you said. The husband died last year, the wife no longer could stay in the property, so she sold. And guess what? She sold the house for $750K after 4 months on the market. She even put on a new roof to help sell it. They paid about $150K for the house in 1970, so she still did well, profit wise. But the point is, she had the equity to sell at the new low for the hood. My friends was bummed as he realized this scenario could happen many more times around his house and keep lowering the comps.
