Wednesday, February 01, 2006

Bankrupt Subdivision 'Not Unique'

The Dominion Homes saga continues to play out in Ohio. "Unhappy homeowners in a west Columbus neighborhood met face-to-face Tuesday night with representatives from Dominion Homes. People living in the Galloway Ridge development are questioning Dominion officials about dropping home values and more than 100 foreclosures and bankruptcies in the neighborhood."

"'Right now I'd have to sell this house at about $180,000 to compete within this neighborhood and the next neighborhood up, and I owe $197,000 on the house,' said homeowner Matt Romine."

"Neighbors blame Dominion for selling to people who couldn't afford to live there."

"'Our Galloway Ridge community is not unique,' said Tom Hart, vice president of Dominion Homes. 'There certainly is a challenge to the real estate market in several parts of our overall region.'"

3 Comments:

At 3:46 PM, Blogger DCBubbleHead said...

positively fascinating. as someone who competed and lost a couple of times with morons using IO financing and no money down, i have no sympathy for these people who whine they got "duped" or "ripped off". these same folks are the type that hem and haw for hours over a $10 price differential between plane tickets on expedia.

 
At 4:10 PM, Blogger Arioch said...

Let me propose a theory here.

I call it "slums of the future".

Many of the new tract homes (especially the cramped crackerboxes where they are maxed out per acre) will become the slums of the future.

Many people bought into these new developments with zero down, exotic mortgages etc... and then fall on their face in droves.

These developments tank in value (comps go down the pooper) and those
who don't perish are stuck in a crappy built building with an upside down mortgage.

The area drops in value rapidly (due to REO's and desperation), and then presto! A new slum.

 
At 4:08 PM, Blogger Jim A said...

arioch:
already happened to some townhouse subdivisions built in the 1970s. Likely to hit the least desirable houses first.

 

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