Owners “Bleeding Money Every Month”

Now there are anecdotes emerging of sellers who are in debt:

This exchange on RE Talks:

Johnny Horton on Tues May 26, 2009 7:51 pm

“I’ve heard so many stories of Sellers not having any dough.
It’s not getting any better, either.”

Greenhorn on Wed May 27, 2009 12:46 am –

“I know some investors who would love to sell, but won’t because there is no profit on the table. They are underwater on the deals. Now they are bleeding money every month, paying a tenant to live in their investment. They tell me the negative cash flow each month is like Chinese water torture. I wonder if there are any homeowners in this situation?”

meeeeep on Wed May 27, 2009 5:21 am –

“I think it’s a pretty common scenario. There is a newish house in Shaughnessy that the owner picked up in the fall of 2007 for $2.8m. He now can’t sell it even for $1.9m. While he waits (for what I’m not sure), he’s got it rented out for $4000/month.”

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