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Old 07-16-2011, 06:14 AM
 
Location: North Cackelacky....in the hills.
19,567 posts, read 21,818,077 times
Reputation: 2519

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Quote:
Originally Posted by North Beach Person View Post
Yes they can. The price reflects the new reality. As do short sales.
Really?
Not what we were told(could be our state...)and not what I have found from a quick look online...

To add,the rural 'development' we are in has 22 lots,only about five have homes built,the rest sit empty and natural.But the property value of the land has fallen according to the county appraisal,yet there are no foreclosures in the immediate area....
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Old 07-16-2011, 06:24 AM
 
Location: On the Chesapeake
45,040 posts, read 60,074,533 times
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Maybe. Using foreclosures/comps is done in MD. Have had Realtors, homeowners trying to re-finance complain about it. Appraisers have confirmed that it's done. Which only makes sense.
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Old 07-16-2011, 06:25 AM
 
9,229 posts, read 8,510,687 times
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We've been fortunate that DH has a good sense about the actual worth of property from his experience in real estate, so we've not had to face this situation. Still, if I did find myself in that situation, I don't believe my sense of community and self-respect would allow me to walk away from a commitment I had made.

There are options available to everyone:
  • If I could find a way to work with the bank to avoid default, I would.
  • If not, I would look at home-sharing. We've rented a portion of our homes up until a year ago, since '97. It is how we've managed to accomplish our financial objectives.
  • If I couldn't share my home, and couldn't avoid default any other way, I would first try to rent it for my loan payment, or sell it at a loss.
Walking away from one's commitments hurts everyone in the community.
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Old 07-16-2011, 06:29 AM
 
Location: North Cackelacky....in the hills.
19,567 posts, read 21,818,077 times
Reputation: 2519
Quote:
Originally Posted by North Beach Person View Post
Maybe. Using foreclosures/comps is done in MD. Have had Realtors, homeowners trying to re-finance complain about it. Appraisers have confirmed that it's done. Which only makes sense.
Post #4.

http://www.city-data.com/forum/forec...nto-comps.html

Of course what is supposed to be done and what IS/WAS done aren't the same...

Appraisers basically ask us what the house needs to be worth....banks lending money without getting any appraisal at all....
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Old 07-16-2011, 06:36 AM
 
Location: On the Chesapeake
45,040 posts, read 60,074,533 times
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Quote:
Originally Posted by oz in SC View Post
Post #4.

http://www.city-data.com/forum/forec...nto-comps.html

Of course what is supposed to be done and what IS/WAS done aren't the same...

Appraisers basically ask us what the house needs to be worth....banks lending money without getting any appraisal at all....

If you notice that is a reference from 4 years ago. The world has changed since then.

Just went to a seminar at a convention where this exact subject (foreclosure impact on property values in municipalities) was the topic.
Actually the title was "Impact of Foreclosures on Municipal Property Values and Services).
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Old 07-16-2011, 06:52 AM
 
Location: North Cackelacky....in the hills.
19,567 posts, read 21,818,077 times
Reputation: 2519
Quote:
Originally Posted by North Beach Person View Post
If you notice that is a reference from 4 years ago. The world has changed since then.

Just went to a seminar at a convention where this exact subject (foreclosure impact on property values in municipalities) was the topic.
Actually the title was "Impact of Foreclosures on Municipal Property Values and Services).
Has the definition of market value been changed?
I don't really care if foreclosures/short sales ARE included really....people can't get annoyed that something as ethereal as your home's 'value' goes up or down....

Your home is only worth what it sells for,no more and no less,if it sells for less than you think it is worth,that is a problem with your perception of reality...
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Old 07-16-2011, 07:53 AM
 
Location: On the Chesapeake
45,040 posts, read 60,074,533 times
Reputation: 60604
No the definition of market value hasn't changed. It is now, and will remain, what you can be paid for any product or service.

You and I are arguing over nothing, really. The fact is that foreclosures/short sales do impact market value whether they're included in comps or not. No one wants to buy on a street/development that has a lot of foreclosures. That's an impact.

An indirect impact is on assessments. MD reassesses every third year (1/3 of a political subdivision per year) and don't think that foreclosures haven't been figured in. What was funny was that people complained when their assessments rose (mostly because they didn't understand that they were Homestead limited on taxes for anything over a 10% increase) and the same people are now complaining because their assessments have dropped, 30% or more in some areas.
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Old 07-16-2011, 09:04 AM
 
2,226 posts, read 2,097,776 times
Reputation: 903
Default my point exactly

Quote:
Originally Posted by hooligan View Post
The bank, for one. Also their neighbors (in all likelihood), as short-sales or bank-owned sales typically drive down property values for the entire neighborhood.
Which is the the reason ours went upside down....you wrapped up ALL of my posts in one small paragraph.
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Old 07-16-2011, 09:11 AM
 
5,696 posts, read 6,191,609 times
Reputation: 1944
Quote:
Originally Posted by Recovering Democrat View Post
If a homeowner owes more on their mortage than the home is currently worth, say

Mortgage: $200,000
Value: $100,000
Under water: $100,000

Would it be wrong for him/her to stop making payments and walk away?



I AM upside down and I have no intention of walking away
wht am I going to do try and sell it and still owe money, try and buy another house and then be in a worse state?
No, I am dancing with the house I bought 15 years ago and I am hoping come 2012, we will kick Obama and his croonies to the street and do something to hopefully salvage the counrty, but the other pary better get their act together because they too are flapping all over the lake
but they are still better than the hack running the ship right now
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Old 07-16-2011, 01:34 PM
 
Location: Huntersville/Charlotte, NC and Washington, DC
26,687 posts, read 41,585,069 times
Reputation: 41312
Quote:
Originally Posted by Recovering Democrat View Post
If a homeowner owes more on their mortage than the home is currently worth, say

Mortgage: $200,000
Value: $100,000
Under water: $100,000

Would it be wrong for him/her to stop making payments and walk away?
After reading a bunch of pages on this thread, here's my opinion.

Is it MORALLY wrong?

Answer: Yes. You gave a promise you would pay a debt and signed for it. Your neighbors will lose money on their homes also so you are ing them also.

Can it be a justifiable financial decision?

Answer: Yes. If you are in a big financial hole anyway, why bother keeping up a house that won't regain it's value for awhile, if ever? If it interferes with feeding your family, to h&#@ with morals, your neighbors housing values, and community spirit, your family needs to eat. The banks made loans that defied logic and good sense. Not many should cry for them.
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