‘Flips and scams’ in California

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Reuters has a good piece tonight on how ‘flips and scams’ helped inflate the real estate bubble in California. The story tells of a couple, the Gordons, who paid $741,000 for a 4,000-SF home in Corona; they’re still paying the mortgage, but two homes on the street are in foreclosure, and one is listed -- by the bank that now owns it -- for $550,000.

‘We have no recourse,’ Joe Gordon told Reuters. ‘We’ll have to live here eight to ten years before we get our equity back.’

Thoughts? Comments? When do you think the Gordons’ house will be worth $741,000 again?
Photo Credit: Reuters