Thursday, March 27, 2008

It Keeps Spreading

Until now the real estate bust had only been hitting us mortals. Those with the lifestyles of the rich and famous seemed to be unfazed.

And then this morning, the Trib reported about Promontory Ranch. Promontory Ranch is development near Park City consisting of two golf course and 200 luxury vacation homes. It is also in default to Credit Suisse to the tune of $288 million. And it has no way to repay it or even to manage or further develop the property. In other words it's holed below the waterline and going down fast.

Credit Suisse's response has been predictable. It has filed suit in Summit County seeking a appointment of a receiver to manage the property. If you have a claim against the developers or if you own property or a security interest in the development, you need to lawyer up. Now.

Whatever the "experts" may be saying, it looks like real estate may not have hit bottom yet.


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