[sportutegrl]

One of those buyers, Daphne Sewell, received three construction loans, totaling about $750,000, to buy three houses in Cape Coral and Lehigh Acres, Fla., in May 2005.

An administrative assistant in Broward County government, Ms. Sewell said she and her husband, a carpenter, earned $90,000 a year at the time of the deal and never should have qualified for their mortgages. She also claims a real-estate firm involved in the deal promised that it would find them tenants to rent out the houses. But the renters never materialized, her houses are vacant, and two of her loans are in foreclosure.

Buying 3 houses on a $90,000 salary is an investment, (and a bad one). You don't get your money back just because you can't make a profit. You win some, you lose some.

[ClearCase_guy]

All I want is a guarantee that my investments will always increase in value, never depreciate, and that in the event of financial difficulties, I will not be held to account for any past stupidity. That’s all I want.

[varon]

An administrative assistant in Broward County government, Ms. Sewell said she and her husband, a carpenter, earned $90,000 a year at the time of the deal and never should have qualified for their mortgages.

What a hypocrite. Why didn't they complain about qualifying when she and her husband were approved for the deal?

[1Old Pro]

rampant speculation generally preceeds a market downturn.

When the pool secretary is buying nasdaq computer stocks online on margin, it’s time to sell short.

[MEGoody]

Even as many of the new buildings are completed, buyers are filing lawsuits claiming they were duped into purchases they couldn't afford

It isn't the builders fault if you were too stupid to read the contract, or to get someone else to read it for you if you couldn't understand it.

[poobear]

“Buying 3 houses on a $90,000 salary is an investment,...”

BWAAHAAHAAHAA@!

AND she’s a government employee. What a moron. Lehigh Acres?

BWAAHAAHAAHAA@!

[oblomov]

Three mortgages that she had no chance of paying back.

Sounds like a predatory borrower to me.

Maybe we should pass a law against predatory borrowing!

[caver]

I guess these articles are supposed to make us feel symphathetic towards these idiotic homebuyers. I don’t feel sorry for some fool that makes $90,000/year and buys three houses.

[oblomov]

[Moonman62]

But a wave of building helped fuel the run-up in housing prices during the real-estate boom, especially in Florida and California.

Hmmm, I thought more supply meant lower prices. OTOH, I remember looking at MLS during that time and there was almost nothing for sale. Now there is ten times that amount.

[ASOC]

So property and land in FL and CA are dropping in value as speculators dry up?

Maybe some FReeper historians can help me here.

AS I read things from the 20s, FL property was a very hot speculative ‘investment’ - and as the economy slowed, the land market fell apart, forcing many to cash in stocks.

This land collapse in turn was the genesis of the stock market collapse or at least a harbinger. Comments?

[BurbankKarl]

Oh, financial ruin....the humanity!

(hope they enjoyed those H2’s they bought with their winnings)