And these people were telling people to buy...
This story of a DC-area real estate agent ought to give pause to anyone thinking that agents automatically: A) have their best interests in mind and B) know what they're doing.
Morrow, a real estate agent for Keller Williams Realty in Arlington, bought a one-bedroom condo in February 2006 for $280,000. He intended to fix it up and sell it. But the repairs he needed to make were more extensive than he thought they would be.
For almost a year, Morrow paid the nearly $4,000-a-month mortgage on the Arlington house he lives in and $2,300 for the condo.
"The market at the time wasn't showing that it was going to get a lot stronger, so I decided it was best to take a loss and get out from under it," he said.
He sold the condo for $265,000. After paying a 3 percent commission to the buyer's agent, a loan prepayment penalty of $8,000 and other closing costs, he ended up owing the bank $33,000, which he did not have.
Hat tip to the housing panic blog.