Wednesday, May 09, 2007

As Market Cools, Home Buyers Seek a Way Out

WSJ ran an article about the creative ways thru which buyers bail out of the contracts.

For some builders, the disputes are contributing to cancellation rates as high as 30% and writedowns in some markets. "People will go to great lengths to get out of a legally binding transaction," said Larry Sorsby, chief financial officer of Hovnanian Enterprises Inc. "They were willing to ride the real-estate boom on the way up, but some are not willing to ride it on the way down."


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