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I was just checking an acquaintance's property from online county records. He bought a small 2/1 condo for $155K in may of 2007 in a good town, but in the worst area of it. This is on the southeast coast of Florida. Checking out recent sales for that area it seems his condo is now only worth about $130K according to comps sold recently, plus he doesn't even have a washer and dryer in his unit but some of the listings that sold did. So he's been paying for 11 years and has zero equity, actually negative equity. I would have thought differently and that it would have gone up in value but I didn't know he bought when prices were still high before the full damage from the bubble burst. Still i'm sure his mortgage is cheaper than area rents go for, so all in all it's not that bad and I think his place will go up in price in a few years.
Another person I know has a house that looked more like a townhouse, but it had a garage and was detached in Naples Florida. He bought high too and should have known better because he's a real estate broker. He ended up doing a short sale a few month ago and lost $80K on it, and it sold for about $360K and it needed work. He said there were too many new homes going up to compete with his.
1.4 million homeowners are still underwater, from a peak of 15 million after the crash. and the 1.4 is more than double the pre housing crash number of people who were underwater.
In the exburbs of DC there are plenty. Basically, my house that we just now put on the market is still not worth what the people we bought it from paid for it in 2006, although it is getting nearer to it. When we purchased it in 2012 we paid over 100K less for it than they did.
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The house we own now was purchased by the previous owners in 2006 when real estate prices here were very high. They originally listed it for sale a couple of years later for entirely too much. Finally, after trying to sell it on and off for about 8 years (it was a vacation home), we purchased it for $35K less than what they paid for it.
I was just checking an acquaintance's property from online county records. He bought a small 2/1 condo for $155K in may of 2007 in a good town, but in the worst area of it. This is on the southeast coast of Florida. Checking out recent sales for that area it seems his condo is now only worth about $130K according to comps sold recently, plus he doesn't even have a washer and dryer in his unit but some of the listings that sold did. So he's been paying for 11 years and has zero equity, actually negative equity. I would have thought differently and that it would have gone up in value but I didn't know he bought when prices were still high before the full damage from the bubble burst. Still i'm sure his mortgage is cheaper than area rents go for, so all in all it's not that bad and I think his place will go up in price in a few years.
Another person I know has a house that looked more like a townhouse, but it had a garage and was detached in Naples Florida. He bought high too and should have known better because he's a real estate broker. He ended up doing a short sale a few month ago and lost $80K on it, and it sold for about $360K and it needed work. He said there were too many new homes going up to compete with his.
How do you know he has zero equity? Even if he had no down payment, 11 years should cover enough principle to make up this difference.
How do you know he has zero equity? Even if he had no down payment, 11 years should cover enough principle to make up this difference.
Exactly, we don’t know how much of a down payment he had or if he made extra payments. OP is basing this assumption without having any idea as to what is the current balance of the mortgage.
And sometimes, those online records are incorrect. My house shows it sold for $275k and $351k on the exact same day. So nosey folks don’t know how much we paid for our house.
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