Less than two years into office, Sen. Mike Lee was forced to sell his dream home in Alpine with his mortgage bank taking a significant loss — up to $400,000 — in a "short sale" as the housing bust in his neighborhood drained his house’s value.
Lee purchased the home for around $1.1 million in January 2008, at the height of the housing boom and when he was working as a private practice lawyer. But as home prices dipped and he was elected to the Senate, Lee found himself underwater in the home and without the means to pay off the difference.
The home eventually sold for around $720,000, according to Utah County records, after J.P. Morgan Chase agreed to write off the loss in the value and Lee forfeited his "significant" down payment.
Saturday, May 19, 2012
The real estate Bubble and resulting crash has bitten New Utah Senator and Tea Party Darling Mike Tea Bags Lee. Bubbles, like the recent real estate bubble or the South Sea Bubble, historically happened from time to time with some frequency in capitalist economies. With modern economies one way to deal with the boom and bust cycle is regulation. An opponent of Market Regulation is Mike Lee:
Irony aside. A deregulator and defacto advocate of allowing more bubbles to arise and burst, is bitten by a bubble. If Mike Tea Bags had his way, Bubbles would occur with regular frequency just as in the past.
I an also wondering if there was a quid pro quo here. A big Wallstreet Bank and a Tea Party leader doing business in this manner seems a little fishy. I am not accusing Tea Bags of anything, other than there is an appearance issue here where the deregulator and the Wallstreet bank are doing business in manner that limits the losses of the deregulator.