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Quit blaming the tax credit program (which I opposed for the record) and own up to your mistakes. Yes, you were like a lot of first time home buyers: you failed do your homework and you didn't know the proper steps to take when buying a house. You haven't wrecked your family but it is up to you to improve your situation. Nothing is so bad that it couldn't be worse (credit my late grandmother for that saying). It may take some time, but figure out how to make things better and move forward. No one else can do that for you.
House issues can be repaired eventually, but a bad neighborhood really can't (at least in any short period of time). Sounds like it's time to start planning a move. Good luck.
Nothing is so bad that it couldn't be worse (credit my late grandmother for that saying).
This..right there!!!! I understand your frustration..I really do. But if you don't get a grip on your emotions about the situation..it will be worse. If your letting it affect your home life and job..you could find yourself divorced and/or unemployed. I hope things work out for you.
Not always, as illustrated by this case and the numerous people who are under water after the "crash".
Owning a home has some potential advantages: equity (assuming it appreciates), tax breaks (depending on income) and the satisfaction of "owning" (or at least having the bank own) your own home.
But the financial risks of buying, particularly in the short term, can be significant even in what appears to be the "right house and location".
Renting has fixed, predictable costs and flexibility that is becoming more and more appealing at all income levels.
RE Skeptic has a great post about the costs of owning. There is also the opportunity cost. The homeowner doesn't have the flexibility to relocate for a career move. If there is huge career advancement opportunity in another city, they are stuck in an underwater house. The lack of mobility is affecting many unemployed people that can't afford to sell.
Even if housing prices weren't dropping, it would take a few years to get 7% equity, to break even on closing costs and agent commissions(5-6%).
Bad house and bad neighborhood can really drag you down. If you are not going to move and are slowly fixing your house, time to think about what you CAN do about the bad neighborhood. I own a couple of rent houses in a neighborhood that never has crime but is surrounded by all kinds of problems. The homeowners have taken control of their neighborhood. They have an "unofficial crime watch" ongoing program. They have posted signs on their fences and they regularly take turns monitoring the streets. They report all suspicious activities, all blaring gang-banger bass car music, and they make code complaints about houses and yards that are not maintained.
When I was in my 20's, I lived in a downtrodden neighborhood. One house was such an extreme eyesore that when the family was out of town one weekend we all had a great beer party on the street and we picked up all the trash, mended their fence, mowed their lawn and then actually patched the wood on their house and PAINTED THE HOUSE!!! We always wondered what their reaction was when they returned home. One of our involved-in-the-great-drunken-cleanup was a young police officer. He made us all promise never to admit he was part of the group.....no complaint was ever filed with the PD.
I am telling you this story just as input that others have lived thru your situation. You can feel really upset about all this, and rightfully so, but you can also do some things about it......
Looks like you are getting some good information here. You know what you can't do but have you considered what you can do? Something that may help is to make a 5 year plan on how you can get fix the things that you can controll. I would bet that in 5 years the values may also increase in your area. Not completly sure as my crystal ball is not always working. Still I bet that with a five year plan you could improve your situation and turn this into a positive outcome.
When I was in my 20's, I lived in a downtrodden neighborhood. One house was such an extreme eyesore that when the family was out of town one weekend we all had a great beer party on the street and we picked up all the trash, mended their fence, mowed their lawn and then actually patched the wood on their house and PAINTED THE HOUSE!!! We always wondered what their reaction was when they returned home. One of our involved-in-the-great-drunken-cleanup was a young police officer. He made us all promise never to admit he was part of the group.....no complaint was ever filed with the PD.
What a great story--just like the good 'ol barn raising parties! It's just too bad that people rarely work together nowadays--especially in politics! (Blue Man Group)
Owning a home has some potential advantages: equity (assuming it appreciates),
One thing that people seem to frequently forget/leave out when discussing the building of equity is that equity is also built from paying down the mortgage. This happens much faster with a shorter-term mortgage, such as a 15-year, and with today's lower interest rates.
Just wanted to point that out. I've noticed that in all of the real estate reading I've been doing lately, practically nobody ever mentions this--and it can be a significant chunk of change.
One thing that people seem to frequently forget/leave out when discussing the building of equity is that equity is also built from paying down the mortgage. This happens much faster with a shorter-term mortgage, such as a 15-year, and with today's lower interest rates.
Just wanted to point that out. I've noticed that in all of the real estate reading I've been doing lately, practically nobody ever mentions this--and it can be a significant chunk of change.
And even with the low interest rates, the faster you pay it off the less you have to pay in interest. That is money that can be invested somewhere else. Maybe it is unusual, but many people do buy a home and have the intent to pay it off quicker than 30 years. I know quite a few people that have done that and are debt free. Funny, those same people don't seem to be interested or happen to talk about how the real estate market is going. They don't seem to complain about how they lost money on a home. Doesn't really matter what something is worth unless you are selling or buying. When the goal is home ownership, meaning no debt, then it may not matter, especially if you have that desire to stay where you are and not move.
When I was in my 20's, I lived in a downtrodden neighborhood. One house was such an extreme eyesore that when the family was out of town one weekend we all had a great beer party on the street and we picked up all the trash, mended their fence, mowed their lawn and then actually patched the wood on their house and PAINTED THE HOUSE!!! We always wondered what their reaction was when they returned home. One of our involved-in-the-great-drunken-cleanup was a young police officer. He made us all promise never to admit he was part of the group.....no complaint was ever filed with the PD.
I am telling you this story just as input that others have lived thru your situation. You can feel really upset about all this, and rightfully so, but you can also do some things about it......
No one ever found out their reaction??
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(Blue Man Group)
