American Communities DESTROYED
May 11, 2008
– Comments (20)
“Hundreds of families have lost their homes to foreclosure since the beginning of last year, and in a sign of more to come, at least 1 out of every 16 households has received default notices.”
“Dave Myers, was the first buyer at Trilogy at the Vineyards by Shea Homes, closing in October 2006 for around $750,000. The unfinished amenities and housing downturn have chopped 40 percent off the value of his home, he said.”
“‘Trilogy was advertised as the place ‘where dreams take flight,’ he said. ‘Well, pretty much they’ve flown away. We’re now the house on the dirty hill that doesn’t have any trees, and doesn’t have any vineyard, and doesn’t have a clubhouse.’”
“Thorton and his wife moved to Brentwood in 2006, thinking they’d found the quintessential little-town neighborhood for their three children. ‘When we first moved in, there were a lot of good people, neighborhood watch types,’ he said. ‘They’re all gone. There is no sense of community here.’”
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/05/11/MNGE1095FT.DTL
This story is being repeated all around America. We kept financing homebuilders to build as they kept financing buyers who couldn't afford the homes. All the while homebuilder executives extracted hundreds of millions of dollars for themselves in salary, bonus, and stock sales.
Now they say they couldn't see it coming? Then why did so many sell at the top in the summer of 2005?
When you loan money to someone you know can't pay you back, it ain't hard to see it coming. When a company KNOWINGLY sells a product that will cause harm to its consumer, that company gets prosecuted. And these homebuilders are begging for tax rebates???
The fallout is just beginning. Even more homes going into foreclosure destroying communities....many of them new communities. Jobs being cut by the hundreds of thousands. Taxes evaporating for many state and local governments. Money is getting harder to come by. Pretty soon we will all realize that most are Subprime.
The solution for insolenvcy is bankruptcy....anyone notice that bankruptcies are skyrocketing????
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