Manteca, CA = bubble woes

CKTCKT
edited October 2007 in Housing Bubble
Here's a really interesting report on the housing woes felt by Manteca, CA:

http://cbs5.com/local/local_story_282022014.html

A highlight:
Developers built more than 30,000 new homes in the last six years. But with the spike in adjustable mortgage rates the flood of buyers turned into a flood of defaults - 11,000 in the county in the past 18 months.

The video on the right hand side is totally worth watching. Especially the part when a house is being auctioned off on the courthouse steps, and there isn't a single person there. Here's the transcript:
The sad story of one home is in the papers taped to the door. One notice of foreclosure reads: "$7,400 behind in payments." The house will be sold at auction at the county courthouse.

It opened for $464,885.15.

That's way below the $620,000 the house sold for two years ago. Still the auctioneer has a lonely job.

"There's nobody here," Blackstone said.

The auctioneer, Ted Longley, chuckled: "Must not be any money involved in the equity area. I don't know."

"You can't give these houses away," Osborn said.
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