Friday, April 20, 2007

Housing: Upside Down

by Bill McBride on 4/20/2007 12:15:00 AM

From the WaPo: 'Upside Down' Home Sellers Owe More Than They Get

Jeffrey Taylor and his wife bought their dream home in Purcellville for $538,000 last August. Now they have to sell it because they are getting divorced and neither one can afford the mortgage alone.

The most they could get for it was $430,000. After paying all the real estate commissions and taxes, they will still owe the bank $118,000.
These stories are similar to the one I posted last month: Escrow to Seller: "Bring Money".