'To put this in the shortest term possible, this sucks.'

From KCRA:

One of the best known properties in Granite Bay, the multimillion-dollar home belonging to movie star Eddie Murphy's ex-wife, may be the housing market's latest victim. KCRA 3 reports that Murphy's mansion is now in default...According to documents obtained exclusively by KCRA 3, Nicole Murphy is behind more than $79,000 in payments.

From the Stockton Record:

Mad owners of 26 homes in the upscale Paseo West development in Manteca got nowhere with their organized protest against Lodi-based Anderson Homes, which intends to auction off 34 homes in that partially built subdivision Oct. 13. But they hope the glare from print and television media will put on enough pressure to make the company cave in to their requests that each homeowner family receive $20,000 cash compensation for lowered home values resulting from what they call a "fire sale" auction. "Basically, they blew us off," homeowner organizer Dave Cantrell said.
...
In an e-mail letter to Cantrell, Anderson Homes owner and President Larry W. Anderson wrote that in nearly 25 years of building homes, he has never asked a homeowner to pay more for a house when the value of their Anderson Home increased. "Your request for a rebate in light of current conditions leaves me perplexed," he said.
...
Randy Brown, a Manteca construction contractor, is the newest resident of Paseo West. He got the keys on his $440,000 house in mid-August, two weeks before finding out about the planned auction. The minimum bid on an auction house such as his is $285,000. "To put this in the shortest term possible, this sucks," he said.

From the Modesto Bee:

An Anderson official...defended the auction as an appropriate way to attract interest. "You can pick up the paper every day and see what is happening in the financial and real estate markets," said Craig Barton, chief financial officer of Lodi-based Anderson Homes. "We have people coming in with some level of interest in buying a home but with no level of urgency, and we felt an auction is a very efficient and proactive way to reduce our inventory. It's as simple as that."
...
The disappointment of these homeowners is likely to be repeated in subdivisions across the region as struggling developers step up incentives to lure buyers of new homes...Kennedy Wilson Auction Group, the company conducting the Paseo West auction, has others scheduled for new homes in Los Banos, Elk Grove, Pinole and San Pablo.
...
Cantrell, who works in the development business, said developers had other options: They could have offered more upgrades or a free sports car while keeping prices higher.

From KCRA:

Frequently Asked Mortgage Questions

• My payment just adjusted and I can't make the payment, what do I do?
• I owe more on my home than its worth, what can I do?
• How does a short sale work and will that negativity effect my credit?
• I just received a Notice of Default, what does that mean and what should I do?
• We have a sub prime loan, can we get rid of the pre payment penalty?
• How do we go about refinancing our home?