Anybody underwater on their mortage (Atlanta, Omega: sales, coupons, 2009)

[Merin]

Originally Posted by mrdkb

I don't think the gov plan will do much to help those who had a decent downpayment, good job, good credit rating - but are now underwater.

Yes it will. If you only have one mortgage but owe more then 80% of your houses value now, you can refi at a lower rate.

[MisterNY]

Originally Posted by FromCLTtoATL

Thank God, I'm not underwater. However, I can't get an offer on my place. I've lowered the price by $20,000 and offered $5,000 in incentives. NOT A NIBBLE. But I'm paying on a rental home in Atlanta and making the mortgage payments on an empty condo in Charlotte. Last week, I also put the condo on the market as a rental. STILL NO NIBBLES. It's very depressing.

But by watching every single dime like a hawk, I'm able to pay both my rent and my mortgage. (Lots of PB&J sandwiches). But it's very depressing to be working this hard and cutting expenses to the the bone just to stay even.

I feel like played by all the rules and got screwed. I have a 30-year mortgage, fixed rate and paid down some of the principal along. I still have a 1986 Sony TV. I got a three-year loan on a used car. I pay my credit cards off in full every month. I didn't enjoy any of the carefree conspicuous consumption others indulged in, but yet I'm also paying the price for it. Sigh.

I don't think you got screwed. You're actually living a frugal and wise life, financially. That's why you can afford two mortgages, versus some who cannot afford one they knew they could not afford from the start. It's tough on everyone, so dont feel like you're getting shortchanged.

I see with the Mortgage stimulus plan, houses and prices may still continue to decline. I dont think that's enough to stop it. It may slow down on the foreclosures. There's not enough work around for people to pay these mortgages. If house prices stabilized years ago, and people weren't so greedy, I doubt we'd be in the mess we're in. Please people, dont just blame Wall Street and HGTV . We're all to blame to a certain extent.

[rcsteiner]

Originally Posted by mrdkb

I don't think the gov plan will do much to help those who had a decent downpayment, good job, good credit rating - but are now underwater.

As long as their payments don't change, it really won't matter -- they won't have the ability to use any equity for credit lines, but while that does hurt, it shouldn't hurt that much. Unless they end up getting hit financially some other way, in which case selling the place will be a challenge w/o taking a loss.

[gt6974a]

The tax credit is $8000 for First Time Home Buyers and not $15,000 for all like proposed

What's a measly $8K when once they drop existing rates, people will save several thousands over the life of the loan for being irresponsible in the first place.

[SOMUTCH]

Bob, I don't think you understood my post. I don't want a hand out for the financially stable, I was speaking with a grin. I thought my post was pretty clear but I guess I could re-word it to say that stupidity in this Country is rewarded.

Someone is bound to critisize my statements here but I am not saying all people losing their homes are stupid, not at all. What I am saying is that it's stupid for those that knew they couldn't afford a home to now stand in line for a free (I grin when I say that word) handout and expect it.

It's equally stupid for the Fed to put such a crazy unknown tax burden on us, our kids and our kids kids to bailout these scumbag lenders that knowingly sold America down river.

[rcsteiner]

Originally Posted by MisterNY

I don't think you got screwed. You're actually living a frugal and wise life, financially. That's why you can afford two mortgages, versus some who cannot afford one they knew they could not afford from the start. It's tough on everyone, so dont feel like you're getting shortchanged.

It's still frustrating. I've been through a similar situation, and while it's nice to survive it, the process of doing so isn't fun, and it's really easy to think about what could have been had certain circumstances not occurred.

[neil0311]

Originally Posted by mrdkb

I don't think the gov plan will do much to help those who had a decent downpayment, good job, good credit rating - but are now underwater.

Why should the gov't help any more than they would help me with any other purchase or investment that loses value. I own stocks that are now underwater. Will the government buy them or pay the difference between what I paid and what they're worth? Of course not.

Folks like me who didn't take a 95% or 100% loan and push my finances to the edge look like fools, while people who signed loans without reading or expected that house would forever appreciate get bailed out by the government with my tax dollars.

Is the government going to pay me back for my lost equity? Of course not (and they shouldn't), but my loss is real money, at least if I try and sell now. People need to grow up and stop wanting mommy to bail them out.

[theS5]

Ah, but isn't this exactly what politicians and major corporations want?
Keep em happy enough so they don't revolt. Then we can continue on sodomizing tax paying, responsible citizens.

Originally Posted by neil0311

Why should the gov't help any more than they would help me with any other purchase or investment that loses value. I own stocks that are now underwater. Will the government buy them or pay the difference between what I paid and what they're worth? Of course not.

Folks like me who didn't take a 95% or 100% loan and push my finances to the edge look like fools, while people who signed loans without reading or expected that house would forever appreciate get bailed out by the government with my tax dollars.

Is the government going to pay me back for my lost equity? Of course not (and they shouldn't), but my loss is real money, at least if I try and sell now. People need to grow up and stop wanting mommy to bail them out.

[Noc]

Originally Posted by atlantagreg30127

These times make for good lessons to learn.

If in the future the bank says you "qualify" for $300,000 - guess what? Find a house for $225,000 instead. Bank the rest. You'll pay the house off years in advance and retire early, while the Joneses down the street stretched it to the very limit and have to work 60 hours a week just to make the house payment of their McMansion.

Half the people I know are underwater with their mortgages, as you phrased it. Those same people however, pushed their budgets to the absolute limits because they demanded to have the "perfect" homes - even if it was their very first home buy.

Actually if you qualify for 300K and buy for 225K you won't get the difference from the bank unless you are fudging numbers on the contract. But I see your point about people should not stretch themselves too thin.

[atlantagreg30127]

Originally Posted by Noc

Actually if you qualify for 300K and buy for 225K you won't get the difference from the bank unless you are fudging numbers on the contract. But I see your point about people should not stretch themselves too thin.

Yes, that was my point. That we (as Americans) have to rethink the way we live. Atlantans maybe even more so, as Atlanta has been a "shop shop shop" type of city for some time. That's why we're near the top of the heap regarding the mortgage issues, empty homes, etc.

People bought homes they could only just BARELY afford (or really, NOT afford), and on top of that they just had to have a new car, shop at Lenox every week, eat out every night, etc. It's gonna pop the bubble eventually. You can't live a West Paces Ferry lifestyle if you have a Cabbagetown budget. You WILL lose the house eventually, if you try.

Here's a good video to watch and article to read regarding how we all need to rethink the way we live. It's not quite just about mortgages, but it's interesting. The financial expert sounds like a stereotype from the Seinfeld TV show, but he does have some good thoughts on the topic. - HERE