Tales from the crypt

It's nice to see greedy lawyers get burned speculating on the housing bubble:

Twenty people went to an auction of new model homes yesterday looking for a bargain.

They were joined by about 80 “looky-loos.”

In the end, the potential buyers wanted too much of a good thing, and the auctioneer's hammer never fell.

Sixteen upscale homes in the Bressi Ranch development were advertised as up for auction at La Costa Resort and Spa, though 15 were offered because one had been sold before the event began.

Buyers were willing to pay about $1 million for a home listed at $1.4 million or $1.5 million, and as little as $650,000 for houses priced near $1 million.

Many bids fell in the $700,000 range.

...

But the owners, Model Homes Investors LLC, a group of Los Angeles-area lawyers, apparently would need about 80 percent of the asking price in order to clear their own debt with the banks holding the mortgages.

And it's nice to see that some people didn't lose their minds in the bubble:

“I just wanted to see what kind of a fool would buy these overpriced homes,” Bruce Azimi of Oceanside said.

Thanks to Todd for sending the link.