A condo came on for sale today asking a little less than it was purchased for in 2005 – they won’t get what they’re asking because prices at this project have been dropping straight to the bottom, back to where they should have been all along. Ah, 2005, when so-so construction in marginal areas sold like hotcakes.
The problem these sellers have is that they purchased their unit with two Wells Fargo mortgages, first and second, that came to 95% of what they were buying. That might have worked had prices gone up – as it is, this smells of short sale to me. Which might not be such a bad thing because,given what’s happened to values at this place, they’d have lost even more had they put in 20% of their own cash.