Monday, April 28, 2008

Repeat the Process

Head Loan Officer Meating
head Meathead presiding


First we built some homes and over-priced them and hoped people would buy them, and buy them they did! And got loans that could not be paid back. The First on this home was $455,000, nearly half a million, waaaayyyy to much for a home in Modesto, California. (Big Belly Laugh)


Second we foreclose on these homes since people can not afford the new payments, but now the homes are worth $250,000, and thats pushing it, I think more like $225,000 or less if they really want to sell them. So we banks take a $200,000 hit since it was overpriced by $200,000.



Third we start all of this once again. These are being built right down the road from the foreclosed home the starting price this time around is $309,000.



Meating ajourned. Now let's get out there and make our $h*t smell like roses!

1 comment:

Malcolm said...

I am constantly amazed at what people will pay for housing on the west coast.

Here's what 450k will buy you in one of the better neighborhoods 30 miles north of Detroit:

http://www.century21town-country.com/property/property.asp?PRM_MLSNumber=30568050&PRM_MlsName=SouthEasternMI

It's no wonder prices are collapsing in CA, they were crazy to begin with.