Another seemingly bleeding heart story about a couple losing their home. But the real story is that of a couple taking on crippling debt, in the hopes of cashing in with a flip, later on. Remember, buyers helped fill this bubble. Now what?... Her marriage is broken, and she lost her job. At the age of 46, she is basically starting over. She said, "Everything about this house was bad timing." Hmmmm... Realtards would advise you against trying to time the real estate market. But then again, for Realtards, it's always a great time to buy. One thing to note from the story: what exactly did they do with $110K in profit from the sale of their first home??? (I hope they didn't use any of that money for "cosmetic" reasons)
2008-01-20: Humbled homesellers
Kim Freeman calls her tale a "riches to rags story." At the center of it is a house in Tustin her husband calls "the albatross." It's a story about bad timing and bad luck – a tale of woe that many 2007 home sellers are telling after enduring the slowest housing market in at least two decades.
The good news here is that the Freemans' house is in escrow after 2 1/2 years on the market. The bad news is they've had to cut their price to $563,000 – $226,000 below their original asking price and $140,000 less than what they paid for the three-bedroom ranch house.
Things seemed rosy when Bill and Kim Freeman bought their Charloma Drive house with the big back yard in the spring of 2004. They had just sold a home in Las Flores for a $180,000 profit after owning it for less than a year. Their plan was to do the same with the Tustin home, reselling at a higher price in less than three years.
They saw the three-bedroom home on a corner lot, noticed it had a remodeled kitchen and pounced before another buyer could get it. They paid $703,000. In retrospect, she said, they probably moved too fast. They put $70,000 down – all that remained from their $180,000 profit from the Las Flores house after taxes and paying off debts. (Where did the $110K go?)
They put the home up for sale for $789,000 in the spring of 2005. They got an offer for $750,000. Acting on their agent's advice, they rejected it. In March 2007, the couple rejected a $675,000 offer because it would have meant losing their down payment, plus an additional $10,000 in cash they'd have to pay at closing.