Gotta love the brewing war between homebuilders and their recent customers (called "screwed undercut homedebtors")
Check out the guy who bought for $580,000 when the same home now sells for $410,000.
Ouch.
Get ready America for some seriously bad stuff between homebuilders and homedebtors.
February 09, 2007
Video report on Sacramento homebuilder firesale auction and screwed recent homedebtors
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11 comments:
I actually feel for the guy who bought at 580K. Imagine an auction where the home next to yours has an suggested opening bid 100K lower than what you paid(probably at bubble peak)and then goes down to the hammer for even less, $50,000 LESS!
Oh the humanity, the pain, the agony, the suffering, the inability to re-fi in two years due to being way underwater NOW, I feel for this poor unfortunate as do we all.
NO I Don't! Just kidding. SCREW EM!
Unbelievable. One successful bidder who bought at $410K was reportedly a FB who got screwed earlier buying at a higher price and now feels she got a "good deal" at $410K! In 6 months she'll get screwed again. They never learn.
This auctioned 4 bedroom house in Elk Grove sold much lower than the opening bid-final price 410K.
Whats shocking to me, is there are people interested on bidding on anything in Elk Grove. It's on a flood plain! And its smack dab in gang land. One lady said she wants to buy "another" in this same subdivision!
It appears the only buyers for any homes in the future will be us housing bloggers...
Builders will entirely shaft debtors and laugh all the way to the bank ...
Illegals will build them for peanuts and materials are under 1/2 of their old $$$ and land is 30% of its old $$$ and I dont see how a 160K drop is all that there is, builders can sell for 1/2 their old price and still have 2 X the markup hidden in there ... builders will make $$$ hand over fist and still under cut by 50%. Seen it personally and am entirely certain, the 410 debtor will be crying next when the house next door drops to 310, and that 310 guys will cry when it drops to 210 ... where in I assume it will slowly drop to the 170-200 mark as we slowly "bottom" ...
Cool.
Cow_tipping.
The builders ,for the most part, were building for the speculators in the later years of this real estate mania . All builders wanted to get into the hyped up market where you could slap up a home/condo and sell it off to the sheep/flippers (who planned to pass the property off the the rich baby-boomers or the unqualified end-user fear-based buyer ) .
Do people really think that builders were building for end-user buyers ? Problem was builders got stuck holding the bag when the market turned in early 2006. Now the builders have all this standing inventory ,but the prior buyers (flippers ),need to sell also. So what you have are entire tracts and condos projects that everybody(prior buyers ) needs to sell ,including the builder .
Well , the builder wins because builders can drop the prices and still make a profit . But what happens to the speculators that are trying to sell in the same project? .......they eat it.
So, the homeowners don't like the builders that are cutting prices .Real estate was suppose to only go up . Builders and speculators deserve each other because they were all trying to make a quick buck . Like attracts like . Your going to see alot of lawsuits in the future between the speculators and builders .
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"That's just how the market is right now."
Well, if you like it at $ 410K, you'll LOVE it at $ 250!!
After watching the video all I can say is "suckas"!!!! The guy thinks he is getting screwed by the homebuilder but I don't see it that way. If anything the dude "screwed" himself. The homebuilder is just selling the property for what they can get for it on the open market. Two years ago suckas were paying them $580K. In the fall this year, those houses will be going for $320K. Suckas!
In two years, he won't be able to refinance the mortgage on his $580K home, that means foreclosure or attempt at short sale. His credit will be trashed and by then the restrictions on financing will be firmly in place.
But, somehow I think the statistics keepers will be able to exclude auction prices somehow. We wouldn't want any bad figures in the mix would we? Just like realtors don't count as unemployed when they are looking for a new job.
He can always live inside his tuned-up Acura.
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