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If you are going to 'hold' it...........make sure you can handle the out of pocket expense (difference between the rent and the mortgage) each month, AND that you are willing to deal with the hassle and expense of renting...............you are not alone.........this is not the first time.............and most likely not the last that people (hopefully not you again) will get stuck with a dropping housing market.
Get some help to look carefully at your entire situation and consider your true desires and dreams..............a house is just a building, and sure it's money (and that's important), but you need to MAKE THE BEST DECISON FOR YOUR FAMILY, regardless of the consequences.
For me, it was worth losing money to get rid of a property that I too purchased in 2005, the builder didn't finish until the end of 2006 and the market tanked in the meantime.....I sold it, came to the table with about $20,000, but got more 6 months ago (about $20K more) than I could get now...........so, chalk it up to experience.
When this home was purchased NO one saw this as the eventual end, and the home did appraise (using past sales) for it to close.
Real Estate is a market.........it has it's up's and downs.............we, in Florida ARE ALL IN THE SAME POSITION
I'd love to hear your answers for our state and the state of our real estate market. Unfortunately 2005 was the absolute HEIGHT as it turned out, and I'm sure the value has decreased since then..........don't know if the current value is accurate, but even though I am not in that area, I know enough to know the market is completely saturated with SELLERS resulting in the price drop.
I wish there were an answer
I under stand that the Market goes up and down, when you bought your house you taught it was worth what you paid, your a Realtor so you should know, the 29 year old couple, I'm sure only know what the appraiser and the bank told them the house was worth, if you bought thinking you were going to flip the house then i have no pity for you. it's like going to a casino and shooting craps.you can win big or you can lose big, but if you bought thinking you were going to stay, then you didn't lose anything because your not going to sell. so it doesn't matter what the house is worth now. I still think the bank and the appraiser are the culprits, a house doesn't lose 1/2 it's value in 1 year, if the same guy is appraising houses in the same area, he can make them appraise for what ever. P/S now that the home prices went down are you going to get lower tax's??
QUOTE: "I can't believe that you people just take whats happing, Don't you realize that you got screwed, Your bank had to be in on it, otherwise why would they give you a mortgage on a house thats worth 1/2 of what you paid? this happened here in Pa. And the government investigated and lots of people went to jail or got fined big time, Complain to some one some one in government has to care. call your congress man or the attorney generals office"
Geno, that's precisely the mentality that makes my blood boil.....it's nothing short of transfer of responsibility! When I read FIU2000's original post I was delighted to read nothing about it being the bank, or mortgage company's, fault.....the fact is that this couple most likely bought at the prevailing level of cost for that home AT THAT TIME, and has suffered because of an unforseen slide in the market. I'm sure that no one was holding a gun to their heads at closing.
By the way FIU2000, I live 3 blocks from Kensington St and my neighbor is going to be renting his house soon. He had a home built in Summerfield and is now making payments on both places. It's only 850 sf and an older frame home......fenced in back yard. If you're interested I will pass along his phone number in a private msg.
Good luck to you....although you're going through a mini-crisis at present, you're both young and intelligent and seem ambitious, so it will most likely work out fine in the long run!
Last edited by tonynorie; 01-15-2008 at 09:13 AM..
I under stand that the Market goes up and down, when you bought your house you taught it was worth what you paid, your a Realtor so you should know, the 29 year old couple, I'm sure only know what the appraiser and the bank told them the house was worth, if you bought thinking you were going to flip the house then i have no pity for you. it's like going to a casino and shooting craps.you can win big or you can lose big, but if you bought thinking you were going to stay, then you didn't lose anything because your not going to sell. so it doesn't matter what the house is worth now. I still think the bank and the appraiser are the culprits, a house doesn't lose 1/2 it's value in 1 year, if the same guy is appraising houses in the same area, he can make them appraise for what ever. P/S now that the home prices went down are you going to get lower tax's??
Sorry Geno, but you don't have a clue about how real estate works and obviously have no idea of the state of real estate in places like southern FL, AZ, Vegas...etc.
Secondly, going from $250k to $150k is not half of the value.
And lastly, 2005 to 2008 is not 1 year. The OP certainly does not need any advice from you. There are lots of people in FLA with the problem and to blame it on the banks and the appraisers is ludicriuos. I'm sure whatever people got locked up for in PA was for fraud. FLA is a big bubble that popped!
QUOTE: "I can't believe that you people just take whats happing, Don't you realize that you got screwed, Your bank had to be in on it, otherwise why would they give you a mortgage on a house thats worth 1/2 of what you paid? this happened here in Pa. And the government investigated and lots of people went to jail or got fined big time, Complain to some one some one in government has to care. call your congress man or the attorney generals office"
Geno, that's precisely the mentality that makes my blood boil.....it's nothing short of transfer of responsibility! When I read FIU2000's original post I was delighted to read nothing about it being the bank, or mortgage company's, fault.....the fact is that this couple most likely bought at the prevailing level of cost for that home AT THAT TIME, and has suffered because of an unseen slide in the market. I'm sure that no one was holding a gun to their heads at closing.
By the way FIU2000, I live 3 blocks from Kensington St and my neighbor is going to be renting his house soon. He had a home built in Summerfield and is now making payments on both places. It's only 850 sf and an older frame home......fenced in back yard. If you're interested I will pass along his phone number in a private msg.
Good luck to you....although you're going through a mini-crisis at present, you're both young and intelligent and seem ambitious, so it will most likely work out fine in the long run!
Hi Tony, truth is we had just come from Broward and made good money on our previous home and were hoping to get into a newer home in Lee County for less money. As it turns out the market in Lee was right on the heels of Broward and we were so scared that it was going to leave us in the dust being able to afford nothing. $250k was our max and most homes closer to Ft Myers were going for 300k and up (apart from the really old homes) So basically we just got sucked in like everyone else who bought at that time and unfortunately though our home is nice, wound up in an area more remote than I would have liked and which we have now realized is just not the place for us. I don't blame anyone but ourselves, but hindsight is 20/20 right? i work for a homebuilder as well and in 2005 I remember asking about the impending decline and no one seemed to think it would be more than a blip on the radar. For most people I think it just struck as a shock especially those of us who had not lived through a down market.
That said, thanks for the referral Tony. I wish we were ready to jump on a rental, but I guess we need to straighten out our "bed" here first (by the way that place would be totally what we are looking for so this is killing me). As soon as that time comes though we are totally Tampa bound. The back-up plan if this down market continues on into the 2009-2010 timeframe is for me to stay in Fort myers in the house and for my husband to go to FIU instead and live with my aunt unless he can find some kind of a roommate deal that would be cheap enough to allow us to pay the mortgage so he can go to his dream school, aka USF..Only time will tell I guess
We moved out of Palm Harbor in 2005 and as you can surmise we did sell our house at excellent price. Alas, we now want to move back! lol We moved to east of Nashville (Hermitage) where we got a 3000+ for 254,000 and thou not as bad as FL the housing (seller) is a bit low. My hubbys biggest concern is the taxes and Insurance and the schools in FL (have a 2yr old) and selling this house. I believe that with my going back to work in FL plus my intentions of being involved in our daughters schools,that we will be fine.
With that being said, would this be a good time to move back re:Buyers market and how long do u think it's going to remain that way in Florida? In other words, how long should we wait to move back? I heard on news that the market is going to start flipping this spring. Any advice is appreciated!
We moved out of Palm Harbor in 2005 and as you can surmise we did sell our house at excellent price. Alas, we now want to move back! lol We moved to east of Nashville (Hermitage) where we got a 3000+ for 254,000 and thou not as bad as FL the housing (seller) is a bit low. My hubbys biggest concern is the taxes and Insurance and the schools in FL (have a 2yr old) and selling this house. I believe that with my going back to work in FL plus my intentions of being involved in our daughters schools,that we will be fine.
With that being said, would this be a good time to move back re:Buyers market and how long do u think it's going to remain that way in Florida? In other words, how long should we wait to move back? I heard on news that the market is going to start flipping this spring. Any advice is appreciated!
It's really hard for anyone to know for sure when the market will stop going down. They have had a lot of news stories and many of the supposed "experts" feel they'll be another 20-30 percent drop in housing before things stabilize. It will more then likely not bottom out and immediately take off either. That could take years before this same thing happens again. Have you considered renting in Fla. after you sell your current house?
It's really hard for anyone to know for sure when the market will stop going down. They have had a lot of news stories and many of the supposed "experts" feel they'll be another 20-30 percent drop in housing before things stabilize. It will more then likely not bottom out and immediately take off either. That could take years before this same thing happens again. Have you considered renting in Fla. after you sell your current house?
No, actually haven't even thought about it until I started reading these boards. I read somewhere here that it's kinda tuff to get a rental now and that rental prices are going thru the roof. Also, I have been looking in our old area (Palm Harbor incl. Dunedin, Tarpon etc.) and have found that there are quite affordable houses to be purchased. 2000+ sq ft 4/2 with pool (comparable to the one we sold in 2005) selling for 230,000 -. I guess if we were looking to buy 3000+ etc, we would definitely lose out in yrs to come. I can't see having to pay a $1000.00/month rental when we could buy for same. I guess we would have to take into consideration taxes and Ins. (whole new ballgame) as they are considerably higher since we left. After spending 17 years there, we shoulda stayed!
Just as an FYI.. I found a 2000+ 4/2 1987 house in Palm Harbor (off Tampa Road) selling for 189,000. I cant see something like that going much lower in years to come. I guess I will have to research more esp. taxes and ins. which is my hubbys biggest concern!
I wouldn't wait for the real estate market to recover. It's in the toilet and it's going to stay there a long time(5 years or so). We are now in a severe recession because of the subcrime mortgage fiasco.
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