Subprime mortgages going bankrupt...what does this mean for us???? (Miami: real estate, apartment)

[Pixie Dust]

As most of you know I have been trying to sell my home since last September and have had a few offers and than for one reason or another they don't go through. In the past month I have had two contracts on my home, the sudden interest could be that I dropped the selling price by over 35k. Both the contracts were denied financing. I was told by one of the financial brokers that to buy a home now a days you need atleast 720 credit score and 10% down. (Which is impossible to find in Miami, most people live beyond there means) The subprime lenders gave away so many loans in the past two years without really verifying information that most of those loans have gone into foreclosure. Meaning that they are going belly up. There have been 36 lenders bankrupt or stop lending all together. The new guide lines are extreme for new homeowners. Moderator cut: link not allowed
It will be virtually impossible to sell your home if something doesnt happen with the inconomy on a national level. I have know idea how long my family will be able to hang on to this property. It is literally becoming impossible to afford living here and the banks are making it impossible to get rid of them, even if your giving it away dirt cheap. Sadly, enough with me not working and the only income comming in from my husband at this point (because of my surgery) we will probably end up loosing are home and all of our hard earned money and lifetime investment. But life goes on the politicians continue getting richer and the middle class continue getting poorer. Life is becomming harder and harder to live, at this point I just want out. I regret in soo many ways my initial move from Ilinois here six years ago. Miami is trully for the big sharks and I am definately a gold fish.

I see a couple things happening:
1. home values drop drasticly
a. people that refiananced will be screwed
2. federal goverment helps the subprime lenders by setting other guidelines so they dont go into default, therefore helping owners not go into foreclosure
3. interest rates drop

Bottom line Im not sure whats going to happen to the economy...are we looking at another recession?????

[klosk]

Here in albuquerque home prices are staying study and the market is good. A home in my neighborhood just sold in 6 days. The asking price was $299,900. I don't know what it sold for, just have to wait till it closes to find out. I think about 294,00 or over list price. I am keeping an eye on this one as we are moving this summer and need good comps. I think it just depends on where in the US you live as to how the market is doing.

[CiXeL]

it means we're going to wind up paying rent to the bank before the year is out.

the country is headed right off a cliff into a massive economic crash.
if you dont believe that to be true, tell me how it cant happen?
i really hope superman comes by to save us at the 11th hour but i dont thing the government has any aces left up their sleeve.

at least then i can start a new career as a farmer out in the redlands.

"Bottom line Im not sure whats going to happen to the economy...are we looking at another recession?????"

recession is peanuts. this will be a depression.
learn to hunt, fish and grow vegetables. we're going down for the long fall.

[Need_affordable_home]

Sorry to hear. Didnt you say foreclosure isnt an option? Is it becomming an option now? I think I mentioned renting it out and you said the rent isnt enough to cover the mortgage, insurance and taxes and you cant drop the price any more or you will lose more money than a foreclosure.

If you bought the house 6 years ago, dont you have any equity? Maybe the mortgage was amortized meaning you pay only the interest part the first few years and very little into the equity till later into the mortgage. How much do you own the bank? How much are you still trying to sell it for?

[tallrick]

I am hoping for a crash, we really need a drastic drop in real estate values to get the debt based economy in a new direction. You can never have real estate too low, the more it falls the better it will bein the long run. I expect prices to remain high until the very last minute, especially in fantasyland Miami.

[Floridasunshine]

If you bought it 6 yrs ago, you can drop the price more than 35,000. Your house has at least doubled in price. I bought one in Tampa for 156 3 yrs ago it is going for 289 now. Most people are asking way too much for the homes.
forget the appraiser amount.

[CiXeL]

tallrick, theres so much vapor money tied up in our economy from realestate the economy would crash depression style. nearly every house down where im at is speculator stuff. i left california because its wayyy overspeculated. a trailer went for a million dollars there. texas is way overspeculated too.
this is not going to be good at all.

[Pixie Dust]

Hey guys sorry I took so long, I am weighing my options and I dont have many. There is still some hope from someone that wants to buy, I should know by tomorrow if he is approved through a different lender. Meanwhile, I have an appt. with an attorney tomorrow to see if I could file bankruptcy and keep my home. Problem is I have no credit card debt or anything. Im just late on my home payments because of the health issues. Because I am not currently employedd (only my husband) Im not sure if I could take out another mortgage but Im waiting on a call back. Because in December, my insurance dropped me, my mortgage lender applied forced insurrance and that premium is 15k a year, because I techniclly have insurance no other compnay will pick me up. So Im paying 1288 for mortgage and in escrow 1325 a month for homeowners insurance. This is a HUGE reason as to why Im behind and my mortgage company will not except only the mortgage payment. Citizens will only pick up your policy if you CANNOT get any other insurance and technachly I have insurance.

[vpcats]

C&R - $15K/yr for homeowner's insurance?? I've never heard of it going THAT high. My goodness. That's just plain ridiculous.
Have you checked with other agents to see if you can drop what you have and get different coverage?
The other thing I just thought about... Can you move out of your house and rent a apartment for yourself and rent the house out to cover most if not all your monthly payments? You could then get renter's insurance for it which is a lot less expensive.
I hope the buyer you're waiting on can get financing. Gosh, I am blown away with that HOI number. Mine is $6482 a year and it's one of the highest amounts I've heard around.

[Pixie Dust]

VP Cats, I will be working the phones today to see how I could get out of this insurance nightmare. By the way, Iv been off pain meds for two days now. Im quite impressed; Im tooting my own horn. Yesterday was my middle sons b-day...17. It was so hard fro me to be cheerful when the world is crashing down on me. Kids now a days do not understand "real life" problems. To be back to the days that the biggest problem was that your teacher didnt like you, you had homeworlk to do or better yet that girl/boyfriend wants to break up with you. Believe me if I knew than what I know now I would completley put a pause on ever event in my life that I had as an adolescent.