Az Foreclosures (Phoenix, Tucson: mortgage, credit, lawyer)

[Gretchen B]

Originally Posted by odinloki1

Here's what will really get me though, my fiance and I got a house about 9 months ago because we're going to be here for at least 2-3 years but want to move by 2010, the best we could get for a nice area was $200k at $1600 a month a normal mortgage. We are going to lose money because of the glut of houses on the market, I tried to do things the right way and not fall for those subprime loans and I will still end up losing money because of this bubble bursting.

Odinloki1 - you might not lose money on your home, especially if you can stay put until 2010. As long as the new home builds don't go hog wild, and people continue to relocate to Phoenix for jobs and retirement, then the increase in buyers should get the excess inventory used up by 2010. At least you didn't buy in late 2005 or early 2006 - that was when prices had hit their peak. As long as you bought in a desirable subdivision and you're not having to compete with new builds in your subdivision when you sell in 2010, you just might even make a profit.

[Bummer]

Originally Posted by odinloki1

Here's what will really get me though, my fiance and I got a house about 9 months ago because we're going to be here for at least 2-3 years but want to move by 2010, the best we could get for a nice area was $200k at $1600 a month a normal mortgage. We are going to lose money because of the glut of houses on the market, I tried to do things the right way and not fall for those subprime loans and I will still end up losing money because of this bubble bursting.

Interesting way of thinking, odinloki.

However, no one knows what your home will be worth by 2010 so your concerns and worries are basically without merit.

How much would rent be for a comparable place to live? How much are both of you going to save on your State and Federal Taxes the next few years? Have you considered the value of "home ownership" over apartment living?

Also, you may want to consider adding a couple hundred dollars towards the principle each month. You will be amazed at how that will reduce the total due in the next few years.

Think positive because "negative thoughts" will not improve the situation.

Good Luck!

[Nice Nice Baby!]

10 year warranty on your defect to the original poster. That is standard across most builders. You have nothing to worry about but time to file the claim if it's true.

[ArizonaBear]

Originally Posted by odinloki1

Here's an idea that I like:

Here's what will really get me though, my fiance and I got a house about 9 months ago because we're going to be here for at least 2-3 years but want to move by 2010, the best we could get for a nice area was $200k at $1600 a month a normal mortgage. We are going to lose money because of the glut of houses on the market, I tried to do things the right way and not fall for those subprime loans and I will still end up losing money because of this bubble bursting.

One phrase:

Supply and demand.

It sounds to me that you played it by the book------and, got bit. Along with many other 'legit' buyers so you are not alone.

[MotleyCrew]

I don't see how you can just assume you will lose money on your home in two to three years. If someone can predict the market with that much clarity, we would all be rich.
The market goes up and it goes down. It is not the end of the world. We were stuck in our little mountain town for 12 years and just made the best of it. Live your life.

[ILoveAZ]

I know this is going OT but I have a hard time feeling sorry for people who bought or refi'd waaay beyond their means with the interest only. Even the youngest and unsaviest homebuyer would HAVE to know that they couldn't pay $300 a month on a 700k house (using the previous posters example) forever. I just can't see someone who makes 30k or 40k a year (assuming they don't have a large portfolio under their belt) thinking that they can afford something to the effect of a 700k house. I believe for the most part it was greediness and people trying to show off. When my husband I buy a house we don't go to the bank and ask how much they will lend us... we look at our finances and figure out what will be comfortable for us and we base that off typical lending practices. There are legit calculators all over the internet. I'm not saying interest only didn't or doesn't have a place BUT you have to be able to afford your home to begin with.

[ILoveAZ]

Wait the market out... it will get better. It's so funny to me how many people began to feel like the crazy market (bidding wars, insane increases) were the norm and now are freaking out. Did we really think that was going to last forever?? That was NOT normal. Today's market isn't fantastic but considering where we were when the whirwind market started we are doing just fine. If you can, wait it out and the market will stabilize again.... just don't expect it to go back to the speed it was 2 years ago.

[sheena]

Originally Posted by ILoveAZ

Wait the market out... it will get better. It's so funny to me how many people began to feel like the crazy market (bidding wars, insane increases) were the norm and now are freaking out. Did we really think that was going to last forever?? That was NOT normal. Today's market isn't fantastic but considering where we were when the whirwind market started we are doing just fine. If you can, wait it out and the market will stabilize again.... just don't expect it to go back to the speed it was 2 years ago.

The problem is a lot of people bought at the height of the market and they owe way more than the house is worth. Many will walk away leaving their homes to foreclose and that will drive the market down before it gets a chance to stabilize. Many areas in Phoenix saw 50% gains and that is not normal compared to the rest of the country. Many people got caught holding the hot potato. Phoenix was raped by the speculators and the builders.

The Az Republic has a story today blaming the lenders but no personal responsibility.

[ILoveAZ]

The house behind me is in that situation. At the peak of the market they paid over 200k more than what similar houses are selling for right now. They can no longer make the payments (going back to people buying houses they couldn't afford) and can't sell it for anywhere near what they paid so are going to foreclose.

I do agree some of the blame should to go to the lenders. They gave these people these loans knowing full well they were mortgaging them way beyond what they could ever realisticaly afford HOWEVER these people had to know that the house they were buying was drastically beyond their means. WHY is it that we are so quick to look beyond an individuals responsibility???

Looking at the neighbor behind me... she is about to foreclose on her home and goes on and on every time anyone talks to her about all the stuff she's buying and how she just purchased Suns season tickets, she still hasn't admitted that they are going into foreclosure. Everything is all about SHOW with her and I totally believe that's the case with so many of these loans. People buying beyond their means for show... look what I can afford (don't tell anyone the loans interest only and I'd never REALLY be able to afford this house if I actually had to pay for it!) THankfully I live in a neighborhood where the foreclosure rate is low... I look at the maps and some are just foreclosure after foreclosure. It's sad for everyone.

[Bummer]

Originally Posted by ILoveAZ

Looking at the neighbor behind me... she is about to foreclose on her home and goes on and on every time anyone talks to her about all the stuff she's buying and how she just purchased Suns season tickets, she still hasn't admitted that they are going into foreclosure. Everything is all about SHOW with her and I totally believe that's the case with so many of these loans. People buying beyond their means for show... look what I can afford (don't tell anyone the loans interest only and I'd never REALLY be able to afford this house if I actually had to pay for it!) THankfully I live in a neighborhood where the foreclosure rate is low... I look at the maps and some are just foreclosure after foreclosure. It's sad for everyone.

Interesting, ILoveAZ

Sounds like a typical case of MEGA-DENIAL!

and you are so correct . . . although the lenders should have known better, no one wants to accept personal responsibility.