07/22/2008 05:12 am ET | Updated May 25, 2011

Even Sex-Party Houses Aren't Selling In This Market

Footnoted regulars know that I've been chronicling the fate of Countrywide's sex party house in Holmes Beach, Fl and using it as a metaphor to explain just how serious the whole subprime mess really is. Not to mention how little Bank of America executives seem to really get the problem.

This week, the house goes on the auction block. And the starting price is now listed at $279K. That's a $90K drop from just last month and considerably less than the $1.1 million that Countrywide appears to be on the hook for as Floyd Norris noted last month. Oddly enough, Countrywide's own REO site still lists the house at $729K.

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