Bought in the past 24 months? Whats your home worth now? (real estate, foreclosed)

[rotorholic]

Just wondering how many people in here are up side down on your home purchase and what are your plans now? Lets hear your stories.....

[SoCalDaveL]

Originally Posted by rotorholic

Just wondering how many people in here are up side down on your home purchase and what are your plans now? Lets hear your stories.....

hell I'll go first. I bought in 2004 (ok, a bit beyond 24 months) @ $440K when prices were climbing quick. House appraised for $620K in '06. A neighbor of mine who bought the same model house just after me (with the smaller backyard and no view) just foreclosed and the bank sold it for $340K. It's BAD here.

I'm upside down due to an HELOC taken out for a business venture which ended up closing. I owe $500K+ and can't do anything with it. Banks suck. I actually HAD someone interested in buying.. but the banks wouldn't talk because I was "current in my payments". So I stopped paying. Now they'll listen but are stating that they won't short w/o the house being on the market for at least 90 days at the value owed. What? Are you kidding? Noone is going to pay that now... and Why wouldn't someone tell me that months ago when I was trying to talk to the bank.

I say F' them. I went and bought a new house before I stopped making payments (while my credit was good) and am moving in there. If they want to foreclose on this one, fine. See you later. The first bank will end up getting their money. The 2nd bank (holding the HELOC) will get screwed.

Meanwhile I'll be in the other house with a roof over my kids heads. Will deal with the fallout later when they start whining about money owed to them. But they'll have no recourse since they don't hold a lien against the new house.

Sad thing is that we tried to do what's right and yet NOONE seems to have answers as to what we should have done - everyone points to a Real Estate agent who points to Real Estate attorney who points to a CPA who points to the Real Estate agent for answers. An ugly circle.

Not a pretty story. If anyone has any info I'd love to hear about it.

[evolutionrules]

Before people start to throw stones at people who walk away from houses after they bought a new one they should think about this...if this were a corporation making this decision instead of a person (and corporations have people making decisions remember) then we would all agree that they made a tough but savvy business decision even of we don't agree with it. A company can layoff thousands, screw peoples pensions, break the law and not pay taxes but it's OK. When people do it we say it's unethical, immoral etc. There is a level of hypocrisy here that is interesting.

[SoCal Bottom Rider]

I am hearing more and more cases of people buying another home they can afford and foreclosing on the old one. But I dont think its as easy at is sounds. You have to have good credit, good history, debt/income ratio, down payment yada yada. I am not going to criticize anyone but the bottom line is..if you are in over your head, it's your fault. You math skills suck. You should have never purchased a home, took out a HELOC and speculated on more appreciation. I hope this last home you buy is your dream home because you will be there for a very long time.

[rotorholic]

Originally Posted by SoCal Bottom Rider

I am hearing more and more cases of people buying another home they can afford and foreclosing on the old one. But I dont think its as easy at is sounds. You have to have good credit, good history, debt/income ratio, down payment yada yada. I am not going to criticize anyone but the bottom line is..if you are in over your head, it's your fault. You math skills suck. You should have never purchased a home, took out a HELOC and speculated on more appreciation. I hope this last home you buy is your dream home because you will be there for a very long time.

I belive its the banks fault for lending money out to people who didnt deserve a loan, I am talking from experiance, me and my wife got a loan for $160,00 back in 2000, I was unemployed at the time and she made about 33k a year, we sold in feb. 2007 for 445k and walked away with 200k, moved to dallas purchased a bank forclosed property and was able to pay it off, I was one of the lucky ones, I feel sorry for the people who purchased my old property, homes in the area are selling from 190k now, I think socaldave did what he had to do, illegal loans is what made prices get out of control in the first place NOW its time for pricing to adjust were they belong.....

[streetscenes]

If you are upside down on a mortage and can get away with buying a new home at a discount before your first home is forclosed I don't have a problem with this. I just don't think it's that easy. You will have to disclosed to the lender for the second home that you own another property and what your loan is (if you don't that's mortgage fraud). When that lender analyzes that data I doubt you can get a new loan. Also where do you get the money for the 20% down, can you qualify for 2 loans (or 3 loans like this guy said with a HELOC)?

Also remember that when you get forclosed on the original lender can and will come after your assets. You can claim a homestead exemption on 1 house but they might take it to court and say that one exemption was the first house and not the second one.

[rotorholic]

so nobody else has a story to share?

[Fighter 1]

Originally Posted by streetscenes

If you are upside down on a mortage and can get away with buying a new home at a discount before your first home is forclosed I don't have a problem with this. I just don't think it's that easy. You will have to disclosed to the lender for the second home that you own another property and what your loan is (if you don't that's mortgage fraud). When that lender analyzes that data I doubt you can get a new loan. Also where do you get the money for the 20% down, can you qualify for 2 loans (or 3 loans like this guy said with a HELOC)?

Also remember that when you get forclosed on the original lender can and will come after your assets. You can claim a homestead exemption on 1 house but they might take it to court and say that one exemption was the first house and not the second one.

Just a word to the wize , File a UCC-1 On the Value you gave for the new home to protect the money you paid down also if there is any Value left in the old home do the same . I know this sounds wild but it is being done here in SO. Calif by many in the same boat an it's workingDM me if you wan't to talk more I will give you my number . Good luck

[Prinny]

The home I live in is worth less than we paid. We're staying in it and there is nothing we can do but ride it out. We love our home and I never imagines people would walk away from a home and then buy another till I read what some had posted.

Amazing what some will do. We are happy w/ our home. Other propert we have is just fine, only our current home which we purchased at the peak is worth less and no such thing as being unhappy about it. It is what it is and I'm just thankful we can afford it and have no plans on moving even if the market was good.

[calif]

Just got a note from the Tax Collector. They appraised our property at $70,000 under what we paid for it in Aug. 2006. WE paid $10,000 under asking price at the time. Boy did we think that we were getting a deal. We've also put in over 15,000 in landscaping! There was a house almost identical to ours that foreclosed and was sold for $170,000 less than what we bought ours for, now that is scary! Although ours has a much better view and is 2 years newer. I'd say we are pretty upside down...it is our first home and we had NO idea that the market would take this turn. Call us stupid.