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Old 11-08-2011, 01:32 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,530 posts, read 39,903,732 times
Reputation: 23634

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This RE market does have serious negative issues for those forced to sell (health / care related). I help rural seniors transition, and it isn't pretty.

I'll be staying in Casa Grande, as I found most of the places had equally bad issues as mine... I just need to take PT employment to cover my increased property taxes(30%), despite drastically reduced valuation (60%).

This will not shake out any time soon, and likely not BuBBLE for decades. I bought a home / farm in 1986 that retirees had on the market for 10 yrs... They were getting REAL tired and had dropped price over 50%. They finally got out and lived just a short time before succumbing to various age related disasters.

From my experience, it is REAL WISE to have a longterm plan / home by age 80. It gets really tough to make transitions later (for various reasons, not the least of which is a potential lack of "REASON" ) There seems to be a 'trigger-point' / time when 'rational thought' flees. NOT always, as I have very cognizant 95 yr olds still on their own, BUT.... there are some 75 - 85 yr olds that I care for that SHOULD NOT be in their current situation. (usually quite remote with about 100 flowerbeds, 1/2 acre garden, and a few animals / barns / tractors to care for + well, and septic issues, disrupted power, long driveways to clear snow, varmints to kill, ... just the 'usual' rural issues). Most common is loosing sight / or having heart issues that disqualify spending 10hrs a day 'keeping up' the farm. Yet... moving from a farm is no ez task (mentally or physically). Do it BEFORE you HAVE TO. JMHO... YMMV

The sad reality is selling 'lifetime' homes for $0.40 on the dollar, and sticking them in a care facility which they will only be able to afford for a short time.

WE (USA) have a really messed up system for elder care / transitions, AND there are plenty of sharks waiting for the kill. (I despise the 'torment' period... hungry lawyers are really a pest to elderly wealth).
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Old 11-08-2011, 06:02 PM
 
Location: Hiding from Antifa?
6,394 posts, read 4,170,610 times
Reputation: 5695
I really wanted to see that story, but the link is to a page that is constantly being updated. The story is no longer on that page.

I am interested because we are in an upside down situation with about 5 years to go for retirement. We have no problem maintaining payments right now, but if things don't turn around on home values, I could see working until I/we die or walking away with a strategic default. Basically it's like we are renting now but with all the responsibilities to maintain the premises, while hoping we can recoup whatever we need to pay into repairs.

So, did the article address our situation?
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Old 11-08-2011, 06:15 PM
 
Location: Near a river
16,042 posts, read 18,964,817 times
Reputation: 15649
Quote:
Originally Posted by Tek_Freek View Post
But that wasn't a sale based on what the market allows. It was based on what you wanted to get out of it while not having an appraisal done.

Apples and oranges.
No appraisal was needed by a bank or other lender, I meant to say. Before pricing the house, I had a professional appraisal done on my own after trying to sell the year before too high.
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Old 11-08-2011, 06:18 PM
 
Location: Near a river
16,042 posts, read 18,964,817 times
Reputation: 15649
Quote:
Originally Posted by Cruzincat View Post
I really wanted to see that story, but the link is to a page that is constantly being updated. The story is no longer on that page.

I am interested because we are in an upside down situation with about 5 years to go for retirement. We have no problem maintaining payments right now, but if things don't turn around on home values, I could see working until I/we die or walking away with a strategic default. Basically it's like we are renting now but with all the responsibilities to maintain the premises, while hoping we can recoup whatever we need to pay into repairs.

So, did the article address our situation?
Sorry I thought I posted it in the OP but apparently not--

Bottom Line - Nearly 29% of mortgaged homes underwater, report finds (http://bottomline.msnbc.msn.com/_news/2011/11/08/8687925-nearly-29-of-mortgaged-homes-underwater-report-finds - broken link)
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Old 11-08-2011, 08:25 PM
 
Location: Baltimore, MD
3,745 posts, read 4,213,572 times
Reputation: 6866
Quote:
Originally Posted by Cruzincat View Post
I really wanted to see that story, but the link is to a page that is constantly being updated. The story is no longer on that page.

I am interested because we are in an upside down situation with about 5 years to go for retirement. We have no problem maintaining payments right now, but if things don't turn around on home values, I could see working until I/we die or walking away with a strategic default. Basically it's like we are renting now but with all the responsibilities to maintain the premises, while hoping we can recoup whatever we need to pay into repairs.

So, did the article address our situation?
Most of the generic articles don't specifically address retirees or soon-to-be retirees who are upside down or are unnecessarily draining their retirement accounts because they cannot refinance their home. Retirees are in a unique position because retirement funds cannot be attached by creditors. This is a two-edged sword. While retirees cannot refinance to a lower rate unless they have steady guaranteed monthly income (outside of their IRAs, 401k, etc.), the lender cannot attach the retirement funds (IRAs, 401Ks, etc.) if the retiree decides to walk away.

Sometimes it is cheaper to pay the mortgage (and repairs) than pay rent. In my situation, it would be cheaper to rent. Thus, I intend to apply for a modification. As most servicers are failing to follow the Making Home Affordable guidelines, I expect my servicer will deny the modification (even though I've already run the numbers and know I qualify for a significant reduction under HAMP.) In my case, Fannie Mae should not deem the default to be strategic, as retirement assets are not countable under their program. Regardless, I don't care. If the lender denies my initial application, I will default. Based on what I've read, there appears to be a significant number of pre-retirees and retirees drawing the same conclusion. YMMV
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Old 11-08-2011, 09:23 PM
 
6,989 posts, read 6,979,790 times
Reputation: 5791
Default "Older Baby Boomers"

Quote:
Originally Posted by newenglandgirl View Post
Edited to add:

A Sept 2011 study by Coldwell Banker says: About half of older baby boomers are looking for a townhome or condo, whereas 27 percent of agents say their older baby boomer clients prefer an active adult community.
I'm curious what age group is considered "older baby boomers?"
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Old 11-08-2011, 09:27 PM
 
Location: SW MO
23,605 posts, read 31,463,318 times
Reputation: 29071
Quote:
Originally Posted by staywarm2 View Post
I'm curious what age group is considered "older baby boomers?"
Well, the oldest of us started turning 65 this year, me being one of them. By definition, we'd be the "older" ones.
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Old 11-08-2011, 09:54 PM
 
16,437 posts, read 19,127,002 times
Reputation: 9518
Quote:
Originally Posted by Curmudgeon View Post
Well, the oldest of us started turning 65 this year, me being one of them. By definition, we'd be the "older" ones.
To us war babies, you older boomers are wet nosed kids...
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Old 11-08-2011, 11:13 PM
 
Location: Los Angeles area
14,018 posts, read 17,723,738 times
Reputation: 32304
Quote:
Originally Posted by lenora View Post
Most of the generic articles don't specifically address retirees or soon-to-be retirees who are upside down or are unnecessarily draining their retirement accounts because they cannot refinance their home. Retirees are in a unique position because retirement funds cannot be attached by creditors. This is a two-edged sword. While retirees cannot refinance to a lower rate unless they have steady guaranteed monthly income (outside of their IRAs, 401k, etc.), the lender cannot attach the retirement funds (IRAs, 401Ks, etc.) if the retiree decides to walk away.

Sometimes it is cheaper to pay the mortgage (and repairs) than pay rent. In my situation, it would be cheaper to rent. Thus, I intend to apply for a modification. As most servicers are failing to follow the Making Home Affordable guidelines, I expect my servicer will deny the modification (even though I've already run the numbers and know I qualify for a significant reduction under HAMP.) In my case, Fannie Mae should not deem the default to be strategic, as retirement assets are not countable under their program. Regardless, I don't care. If the lender denies my initial application, I will default. Based on what I've read, there appears to be a significant number of pre-retirees and retirees drawing the same conclusion. YMMV
I thought attorneys were exempt from these kinds of problems because of their high earnings potential?
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Old 11-09-2011, 05:24 AM
 
Location: Near a river
16,042 posts, read 18,964,817 times
Reputation: 15649
Quote:
Originally Posted by oddstray View Post
I don't get the "whereas" from this. Those two are not mutually exclusive - 'looking for a townhome or condo' and 'prefer an active adult community'
An independent condo or townhouse anywhere, as opposed to a 55+ retirement village type place (made up of individual condos or apts).
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