Housing Doom Housing Bubble Blog

A nation that forgets its past is doomed to repeat it. - Churchill

November 7th, 2007

Sell Your House Or Go To Jail

Just when I think I’ve heard it all….

Many thanks to J.R., who emailed me last night and shared the following story:

I just got a call from my brother a few hours ago, from jail.  My brother has never been in trouble before, so I was totally shocked when I got the automated collect call message.  The reason he is jail is even more shocking- he failed to sell his house. 

He just went through a nasty divorce which left him cash poor but equity rich, so as part of the divorce, there was a list of debts that would be paid off when the house was sold.   It turns out that one of the debts was for a lawyer appointed by the state for their children.  The judge called a hearing to find out why the house wasn’t selling. (the house has been on the market for eighteen months now)  My brother came in with evidence showing house improvements, listings with realtors, open houses, and price reductions, but it was to no avail.   Six months in the slammer for contempt of court, or until I can wire him the money to pay off the lawyer.

I was wondering if you have ever heard of anything like this before.

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November 7th, 2007

A Preview of Housing Armageddon?

L occasionally sends me something from IMAPP, a program available through ARMLS. [Arizona Regional Multiple Listing Service] Using IMAPP, you can look up a property and see a map showing listings and foreclosures in an area.  Listings are shown with green signs, foreclosures are represented by gavels.  Foreclosures can be at any stage from having received a "Notice of Trustee’s Sale" to being a REO.  When L sent me this one from El Mirage, [a Phoenix suburb] it really caught my attention:

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