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Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,590,742 times
Reputation: 677
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Quote:
Originally Posted by cohdane
People used to say, "You can't expect to sell for the 2006 price." Now you can't expect to sell for a 2007 or 2008 price, either. Twelve months from now, the 2009 price will be too high.
"Sell now or be priced in forever."
Yep, eventually we will all get a free house if we keep it up! Booyah!
Well the dumbest thing I've heard thus far is people who CAN afford the mortgage payment saying they want to walk away because they are so far upside down.
If you can afford the mortgage and the value of the property in the current market is less than the amount you owe you have LOTS of options.
The first, and perhaps best, option is simple to continue to pay your mortgage, live your life and not worry about the current imbalance between what you owe and what the property is worth. You need a place to live and the home provides that. At some point in the future, if you need to sell, you hopefully will not be in the same situation.
You can attempt to market the property with the hope that someone will fall in love with it the same way you did. It happens. Even properties that are grossly overpriced do sometimes find a buyer. Not often, but sometimes.
If you want to work on the financial aspects you could attempt to find a solution that will work for you and your lender. This may involve changing the terms of your mortgage. Right now there is not too much interest in "shared appreciation" type agreements, but I suspect that will change. Lenders are just swamped right now, but when they start to come to their senses they will see that such changes make sense.
You could also work directly to try and increase the value of your home. A whole range of options exist -- from renovation & decorating to attempting to shift the long term desirability of your neighborhood through group efforts. It is not all that uncommon for towns to try and market themselves to potential businesses, I can see a shift toward group marketing a town to potential home owners...
You can try and spend down your resources and worsen your financial situation and then contact the lender to attempt a short sale. Frankly seems like a BAD idea if you don't need to move and you can afford the mortgage, but it is an option.
The worst "solution" is to stop paying your mortgage. You will be foreclosed. The lender will likely attempt to collect the amount owed. You will have no place to live. Your credit will be ruined. The neighborhood you at one time found desirable will be less so. You will personally be responsible for harming your neighbor's home values and ultimately the quality of credit in the entire US.
The current mentality is to walk away from your responsibilities....your marriage, your children, your job, your mortgage, your credit card debt....no more staying the course....walking away is just easier and easy is what its all about. Responsibility is just a six-letter word.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,590,742 times
Reputation: 677
Quote:
Originally Posted by LynnKK
The current mentality is to walk away from your responsibilities....your marriage, your children, your job, your mortgage, your credit card debt....no more staying the course....walking away is just easier and easy is what its all about. Responsibility is just a six-letter word.
Makes you proud to be an American, right? (sarcasm)
It seems like a few people on here might have some credibility so I will share my situation a little bit with the hope of people not being rude and getting some real advice here. Our situation is this...We want to move out of state to secure a better job. The job is there we just cannot sell our home so therfore we keep holding off on the transfer. I say we cannot sell our home because if you go according to comps then we will be around 140,000 underwater. I have contacted realtors and they will not even list us at our payoff because it is a waste of time. Our tiny little neighborhood once promising and filled with new homeowners is now nothing but a neighborhood with more renters than owners. Just on my street alone out of 12 homes 8 are in foreclosure!! Just on my street. The community has gone downhill and is filled with renters who could give a rats butt about what happens. I must say that things are selling here. The only problem with that is they are selling for no more than 115,000$. The home next to me is the exact home as ours minus upgrades, it is on a corner lot and cannot sell for 125,000$$$ It has been listed for over 4 months now. We owe 265,000. How are we ever going to move on with our lives with such a deficit? We have perfect credit and have worked hard for it. We would be willing to move and rent it out for a year or two to see what happens with the market. I am just having a hard time putting our lives on hold to live in a home that is not our final destiantion and throwing money down the drain. We could and can still afford the home. My employer has lost accounts so therfore my income drops by 50% in the summer. We do not have reserves. We have used them to make it in the summer downfall. One poster said to skip CC payments and make sure you pay your home..well I would rather keep those in check because right now they will last me longer than this home will. We don't know what to do. We are young and did not know about a bubble busting. We had never been through this before. Not a day goes by I wish we would have just rented. We have tried to talk to our bank 4 times and they will not help us. We do not qualify because we have never been late and can "afford" the payment. Even if we could just modify our 7% rate we could afford to rent it out and move on with our lives. Right now in our neighborhood you can't get more than 1,000 per month for rent. That is a severe loss when you consider we would have to pay to rent somewhere else and pay the huge remainder on this home.
We are worried about our credit, but I do have to stop and say that a high FICO is not making our lives any happier right now.
So when you are so far underwater in a home you no longer wish to have in a state you no longer wish to live and are putting a better and more promising future on hold what do you do??
It seems like a few people on here might have some credibility so I will share my situation a little bit with the hope of people not being rude and getting some real advice here. Our situation is this...We want to move out of state to secure a better job. The job is there we just cannot sell our home so therfore we keep holding off on the transfer. I say we cannot sell our home because if you go according to comps then we will be around 140,000 underwater. I have contacted realtors and they will not even list us at our payoff because it is a waste of time. Our tiny little neighborhood once promising and filled with new homeowners is now nothing but a neighborhood with more renters than owners. Just on my street alone out of 12 homes 8 are in foreclosure!! Just on my street. The community has gone downhill and is filled with renters who could give a rats butt about what happens. I must say that things are selling here. The only problem with that is they are selling for no more than 115,000$. The home next to me is the exact home as ours minus upgrades, it is on a corner lot and cannot sell for 125,000$$$ It has been listed for over 4 months now. We owe 265,000. How are we ever going to move on with our lives with such a deficit? We have perfect credit and have worked hard for it. We would be willing to move and rent it out for a year or two to see what happens with the market. I am just having a hard time putting our lives on hold to live in a home that is not our final destiantion and throwing money down the drain. We could and can still afford the home. My employer has lost accounts so therfore my income drops by 50% in the summer. We do not have reserves. We have used them to make it in the summer downfall. One poster said to skip CC payments and make sure you pay your home..well I would rather keep those in check because right now they will last me longer than this home will. We don't know what to do. We are young and did not know about a bubble busting. We had never been through this before. Not a day goes by I wish we would have just rented. We have tried to talk to our bank 4 times and they will not help us. We do not qualify because we have never been late and can "afford" the payment. Even if we could just modify our 7% rate we could afford to rent it out and move on with our lives. Right now in our neighborhood you can't get more than 1,000 per month for rent. That is a severe loss when you consider we would have to pay to rent somewhere else and pay the huge remainder on this home.
We are worried about our credit, but I do have to stop and say that a high FICO is not making our lives any happier right now.
So when you are so far underwater in a home you no longer wish to have in a state you no longer wish to live and are putting a better and more promising future on hold what do you do??
Sorry to hear this, thats why this article caught my attention. These people that are defaulting now are people that did everything right and can no longer pay there mortgage because of job losses or severe reduction in salaries and have used up their savings because it takes so long to find another job. A member of my church moved to texas and is basically stuck there, she cannot sell her house because she is so far underwater.
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