Refinancing opions or must go into foreclosure in Northern Virginia

[VLT]

Additionally, if you go into foreclosure, though your bank may forgive you for the $70k difference, Uncle Sam will not. Uncle Sam will require that you pay capital gain on the $70k on your next tax return, i.e. by April 2008. At 15%, that's over $10k in taxes only.

And, this may affect your citizenship. Part of your package is a background check. I've known of several people who did not get clearance because of their finances. It makes a lot of sense when you think of it, why would the American government want to offer citizenship to people who easily get out of a contractual obligation just to make a quick $70k and expect the banks and other citizens pay for their mistakes? Going into foreclosure does not erase the debt. It's still very much there, and someone else is pay for it. It inflates PMI rates, it inflates bank rates, bank fees, it affects our economy, and much more. There's really no such thing as a free lunch...

The market will pick up. Real Estate is still one of the better investments out there, but you have to realize it is a LONG TERM investment. So, you should not look at home values 7 months after your purchase. It's like looking at every other car on the road just after buying yours, wondering if you bought the right one. There's nothing you can do about it.. Just sit tight and the market will pick up; the rule of thumb is 5-7 years for Real Estate. We saw shorter times in the last few years but that was not a normal market. The question is: will you need to move before this?

If you like the house and see yourself living there for a while (which is the best option for you), maybe you should work on paying off your mortgage a little more each month to start working on the principal. You don't seem to mention a monthly cash flow problem, just afraid that you are putting your money into a black hole.

BTW, 6.25% is a great rate, so your FICA score must be pretty good. Keep it up, protect it.

Though you bought before it hit bottom, but you still bought at a good price. Imagine the folks who bought a house in your neighborhood a year before you did?? You got a deal compared to them.

Best of luck!

[goldenmom7500]

Originally Posted by VLT

Additionally, if you go into foreclosure, though your bank may forgive you for the $70k difference, Uncle Sam will not. Uncle Sam will require that you pay capital gain on the $70k on your next tax return, i.e. by April 2008. At 15%, that's over $10k in taxes only.

And, this may affect your citizenship. Part of your package is a background check. I've known of several people who did not get clearance because of their finances. It makes a lot of sense when you think of it, why would the American government want to offer citizenship to people who easily get out of a contractual obligation just to make a quick $70k and expect the banks and other citizens pay for their mistakes? Going into foreclosure does not erase the debt. It's still very much there, and someone else is pay for it. It inflates PMI rates, it inflates bank rates, bank fees, it affects our economy, and much more. There's really no such thing as a free lunch...

The market will pick up. Real Estate is still one of the better investments out there, but you have to realize it is a LONG TERM investment. So, you should not look at home values 7 months after your purchase. It's like looking at every other car on the road just after buying yours, wondering if you bought the right one. There's nothing you can do about it.. Just sit tight and the market will pick up; the rule of thumb is 5-7 years for Real Estate. We saw shorter times in the last few years but that was not a normal market. The question is: will you need to move before this?

If you like the house and see yourself living there for a while (which is the best option for you), maybe you should work on paying off your mortgage a little more each month to start working on the principal. You don't seem to mention a monthly cash flow problem, just afraid that you are putting your money into a black hole.

BTW, 6.25% is a great rate, so your FICA score must be pretty good. Keep it up, protect it.

Though you bought before it hit bottom, but you still bought at a good price. Imagine the folks who bought a house in your neighborhood a year before you did?? You got a deal compared to them.

Best of luck!

Now that brings up an interesting point. I mean, when prices were high, interest rates were much lower. Years ago we had a rate in the 4s. But I received a similar rate as yours just a few months ago ... my FICOs were in the 700s (I know because I checked myself) but one bureau was giving me under 750 and the others over, so I'm not sure if I got the absolute lowest rate. I think they said I did, but it was kind of hectic.