This is an extension of the previous thread with some local coverage from the Vancouver Sun:
The Pirillos are among hundreds of B.C. property owners who have been caught by slumping real-estate prices and high-interest, subprime mortgages.
They bought their five-bedroom house five years ago for $114,000, but Pirillo owes Accredited Home Lenders, a U.S.-based subprime lender, $140,000 after borrowing against their house equity.
Their mortgage called for interest payments of 8.25 per cent, but when it came to renew recently, the company wouldn’t renew at any price because the bottom had fallen out of the housing market.
“My mortgage lenders evaporated. We couldn’t find anybody to lend us money,” said Pirillo.
In default, he put the house on the market but was unable to unload it for $215,000. It is currently listed at $169,000.
An extra thought for discussion: It’s taken three years for the housing market in the US to fall apart to its current level, but their collapse started before there was any really bad economic news, prices simply started to fall after getting too high. Every spring the US markets seem to have a small rally, then fall dramatically over the rest of the year (sacramento for example). With the current global economic climate will our market fall faster and hit bottom at a relatively quicker rate, or will the US market be recovering for years before our local market does?