Another person is screwed in Scripps Ranch where I live. I am watching my neigborhood closely. This person bought a home for 850,000 in ’05 (The original price for this home $325,000 in 1999.) I just found out he is now in the process of foreclosure (court recording). It has been on the market for over 90 days now. He has lowered his price twice and still no takers. Hmmm, it is starting to look like 1991 to me.
My close coworker who bought during the mania of end of 2004/early 2005 who would spend all day looking at real estate ‘investments’ on the Internet at work recently confided in me just how much under water he and his wife are. He and his wife were empty nesters and bought in theSan Elijo Meridian tract, both regretting at the time that they “only bought two homes.” Buying both with a fair amount down, but each with a teaser ARM, both places are now up for sale and they’re scared about how much of a loss they’re looking at. Soon-to-be retirees (or maybe not anymore), and they’re easily $75-100k down on each home. Of course I don’t have the heart to tell them that they aren’t going to be able to get what they paid for each (what they’re currently asking). Too bad the builder is also having trouble selling inventory homes for a lot less than what they think they can get. Pity the fool, no matter how lovable.
Sorry, I don’t pity greedy people. I know some people like that also.
Two of my relatives in LA just retired and sold their long time house to move overseas. They priced it right and just closed at a great price. They are simple people who managed their finances right and were lucky to retire at the top of the market. That’s the right way to make a living.
Doubling down on a bubble is pure and simple greed.
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