[onewhippedpuppy]

Originally Posted by the

Need a psychic, or too bad they simply didn't read the More Bad RE News thread through 2006 and 2007.

Many of us saw this coming, it was no surprise at all, and banks lending out billions of dollars should have seen it, too. It wasn't hard at all to see. There were so many things that made it easy. Just a few: (1) It happened before. (2) You can't have an asset like real estate, which pokes along at a relatively stable, slow appreciation rate, suddenly double or triple in value in a few years, and expect that to hold. As was said in the More Bad RE News thread, over and over again in real time through 2006 and 2007, only a total idiot/clueless/naive person could think that.

So you're saying that the banks could have simply referenced Pelican Parts OT for a precise to the penny value for any real estate? Amazing!

It's one thing to say, "this can't continue". It's quite another to determine a precise property value based not on what it is selling for today, but what it will be worth in an undetermined future recessionary period.

By the way, how does this have anything to do with skipping out on a commitment? What I don't understand is the fact that when the home was purchased, it was obviously worth X dollars. Unless it was bought to flip, why is it suddenly no longer worth X dollars to the homeowner? Simply because houses are now selling for less?