But one thing's for certain: Timing is everything.
Just as the bottom was about to fall out of the housing market, the city and the fellows formerly known as Countrywide Financial Corp. struck a bargain in August 2008 for Ledebur and 14 others like him to purchase an affordable-rate, one-bedroom condo at the swanky new Burbank Collection development next to the AMC movie megaplex.
The agreement valued the new home at $390,000 and called on Ledebur to take a $163,500 mortgage, with the city making up the $226,500 difference with a "silent" second mortgage — "silent" meaning "on paper only," as the loan requires no payments and no money ever changes hands among the city, the bank or the developer.
Along with a future-sales covenant keeping these units within the city's affordable housing stock, the silent second mortgage is designed to prevent a buyer from flipping property at market rates down the road.
But the market-rate condos at Burbank Collection, which were still being finished when Ledebur moved in, generally sold for around $300,000, despite granite countertops and other extra luxury features not provided in the affordable units.
And now the silent second is also preventing affordable-housing buyers from refinancing their mortgages at today's much-lower interest rates, though personal budgets are getting leaner, building association fees are going up and the City Council is raising utility rates.
Basically, these affordable housing buyers are in the same boat as others who bought homes before the market crashed and now find themselves "underwater," as in owing more on them then they're worth.
Due to admitted miscommunications by city officials that portions of the silent second would be forgiven annually, Ledebur's been told he can opt to reverse the deal and give up the property.