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Old 05-21-2011, 07:50 AM
 
2,806 posts, read 3,177,385 times
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We bought our house in December 2009 during the first-time homebuyer frenzy for 180k in North Phoenix. Meanwhile, we paid down our mortgage to about 140k and I thought in my naivite I apply to eliminate PMI payments. So much for that - the lender came back to us with a valuation of 140k which puts us officially under water. They sent us a bunch of comps of just sold properties and currently on the market properties, a so called "BPO". Do you think a >20% drop over the last 17 months is realistic? Should I dispute? - I am almost freaking out. I thought the worst was over in 2009 but yet it is not.
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Old 05-21-2011, 08:06 AM
 
10,494 posts, read 27,238,533 times
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If you owe 140k on your mortgage, and your house is worth 140k, how are you under water? I don't get it.
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Old 05-21-2011, 08:38 AM
 
Location: Schaumburg
759 posts, read 3,144,327 times
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Ask for a streamline refinance if you're FHA or VA
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Old 05-21-2011, 08:51 AM
 
Location: Prescott Valley, AZ
3,062 posts, read 6,696,169 times
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Our kids paid $120K for new a home in Mesa in 1997. They put in the yards, covered patio and upgraded the kitchen and put a lot of money into the home.
It was valued at some $265K in 2008 just before the crash.
They sold that home about that time and moved up here with us but that home is now on the market and the estimated value is $118K as the people that bought it are no longer there.
I will let you do the math.
Anything that is for sale is only worth what someone else is willing to pay for it at that moment in time.
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Old 05-21-2011, 10:23 AM
 
2,879 posts, read 7,778,755 times
Reputation: 1184
Quote:
Originally Posted by Potential_Landlord View Post
We bought our house in December 2009 during the first-time homebuyer frenzy for 180k in North Phoenix. Meanwhile, we paid down our mortgage to about 140k and I thought in my naivite I apply to eliminate PMI payments. So much for that - the lender came back to us with a valuation of 140k which puts us officially under water. They sent us a bunch of comps of just sold properties and currently on the market properties, a so called "BPO". Do you think a >20% drop over the last 17 months is realistic? Should I dispute? - I am almost freaking out. I thought the worst was over in 2009 but yet it is not.
What does the assessor say for 2012? I know the realtors and others will say it's meaningless, if we could only have the Teacher's Union say it's useless than we could be 100% sure it is a very good way to determine what the appraisers will say. I've bought at less than half of BPO. There is an award winning real estate site in the DC area that lets you search by percentage of assessment......"most innovative". Was your North Phoenix home REO? I am seeing more and more proof, even in my own family, that the FTBC created a micro boom on a downward slope. My nephew paid about 30K more than he should have to get the 8K.
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Old 05-21-2011, 01:06 PM
 
2,806 posts, read 3,177,385 times
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How is it impossible for 140k to be lower than "about 140k"? - I don't get it either.
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Old 05-21-2011, 01:10 PM
 
2,806 posts, read 3,177,385 times
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Quote:
Originally Posted by khuntrevor View Post
What does the assessor say for 2012? I know the realtors and others will say it's meaningless, if we could only have the Teacher's Union say it's useless than we could be 100% sure it is a very good way to determine what the appraisers will say. I've bought at less than half of BPO. There is an award winning real estate site in the DC area that lets you search by percentage of assessment......"most innovative". Was your North Phoenix home REO? I am seeing more and more proof, even in my own family, that the FTBC created a micro boom on a downward slope. My nephew paid about 30K more than he should have to get the 8K.
I think you are right. The FTBC was a counter-trend rally in an ongoing decline. I guess I was stupid enough to buy into it. Fortunately we do not need to sell or anything and could even rent it out ok, but financially speaking we made a wrong decision. Too impatient. We thought the house fell enough from 320k where it was last sold.
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Old 05-21-2011, 01:12 PM
 
2,879 posts, read 7,778,755 times
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Allow about 10% for seller incurred closing costs.
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Old 05-21-2011, 01:14 PM
 
2,806 posts, read 3,177,385 times
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Default How much does it cost for a new build realistically? (Price per SF)

How much does it cost to build your average Arizona - quality house right now in cost per SF? - This should give us a realistic idea of where home prices are headed once the surplus units (distressed or not) are worked thru the system. Then the new build should set again the price.
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Old 05-21-2011, 01:20 PM
 
46 posts, read 148,504 times
Reputation: 33
Quote:
Originally Posted by Potential_Landlord View Post
We bought our house in December 2009 during the first-time homebuyer frenzy for 180k in North Phoenix. Meanwhile, we paid down our mortgage to about 140k and I thought in my naivite I apply to eliminate PMI payments. So much for that - the lender came back to us with a valuation of 140k which puts us officially under water. They sent us a bunch of comps of just sold properties and currently on the market properties, a so called "BPO". Do you think a >20% drop over the last 17 months is realistic? Should I dispute? - I am almost freaking out. I thought the worst was over in 2009 but yet it is not.
so the lender is estimating that you no longer have 20% equity in your home...and is asking for PMI? i didn't realize they could do that.

does verbiage in the original mortgage allow for that? i guess i never read my contract that closely.

of course i would dispute, tell them if they charge you any more...they can end up foreclosing on you (i think i'd try that option)
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