Here's one homedebtor's desperate rush to unload a rapidly sinking asset in the middle of the greatest housing crash of all time.
Funny when your home plummets $150,000 in value in 12 months and you still feel lucky to get rid of it.
It's called a Ponzi Scheme folks. And 25% off firesales are just the start. I feel sorry for anyone dumb enough to buy for such a small discount.
But then again a lot of people thought pets.com stock looked attractive at 25% off too...
The Mortgage Crisis Lost Me $140,000 - By Suzanne Barlyn, Special to TheStreet.com
The subprime mortgage crisis that dragged the country's housing market down this year hit our family's pocketbook in a big way. How big? We came up $140,000 short of our expectations.
Our home's value peaked at over $800,000 in 2006, nearly twice what we paid seven years ago (even we had commented on the absurdity of the home being worth so much). In that context, letting it go in the high $700,000s seemed fair. But we lowered the price another $25,000 after a few weeks passed with just a trickle of interest.
The process wore us down -- enough to tolerate a second price reduction, down to $749,900. But interest -- not offers -- was all we attracted as the "resale inventory" (other homes for sale in the same price range) ratcheted up to 15 in our community.
Some neighborhood houses, meanwhile, finally sold in the $680,000 range -- the first scary indication that we'd have to let the house go for less than we imagined. Our bottom line sales price of $725,000 was slowly slipping away, we realized, as we lowered the price yet again.
The chance to unload our house -- for $650,000 -- finally arrived in August.