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We are priced high, when compared to what the foreclosures are selling for of course. The problem is that we have to use them as comps now and the home is brand new. We are talking about having to price the home possibly $200K less than we paid for it if we are going to price it as low as the foreclosures,that is what is selling right now.
A 4200 sq ft.home in the neighborhood we are trying to sell from, just sold at auction for $199K, that home was built in the mid 400's....
Just to give you an idea.... our home is not that large and so it was not as much money,but the gist is, there are more foreclosures that have sold than any other properties.
But those foreclosure prices is now the comp for your own home..sad as it is. That is what buyers are willing to pay.
If you end up chasing a falling market, the longer you wait the less you will get for your home.
I know there are some option ARMs coming due soon. These were the "interest only" payment type of mortgages.
When they readjust they will then include principle payments besides the interest. You just know there's trouble here.
Unfortunately the mortgage holders' assistance programs are generally geared to just as stated, the people that were risky loan subjects at best. People like my DH and myself have transacted for a comfortable mortgage rate, always paid in full and on time for the last 10 years, yet we stand to be in trouble becuase this economic bust has cost us both our jobs. The best rates and terms for refinancing still seem to be extended to the defaulters.
We will probably have to sell in these unfavorable times to get the most out our equity. Thank God we have equity!
We are priced high, when compared to what the foreclosures are selling for of course. The problem is that we have to use them as comps now and the home is brand new. We are talking about having to price the home possibly $200K less than we paid for it if we are going to price it as low as the foreclosures,that is what is selling right now.
A 4200 sq ft.home in the neighborhood we are trying to sell from, just sold at auction for $199K, that home was built in the mid 400's....
Just to give you an idea.... our home is not that large and so it was not as much money,but the gist is, there are more foreclosures that have sold than any other properties.
And one of the problems we in real estate face is if you had 3 buyers who wanted your house and were willing to pay full price with the new appraisal rules it would not appraise and probably kill the deal.
We can conduct investigations and forensic audits and throw those responsible--whether it be through misconduct or malfeasance in public office--in jail, after we claw back their illicit gains. And by claw back, I mean with sharp steel things that leave a mark.
We can vote out the bums that are still in office that repealed the Glass Steagal Act--the safety mechanism law that was put in place in 1933 to prevent what caused the First Great Depression. We might even consider trying a few of the leaders for high treason.
We can fire anyone working in a regulatory agency for the last decade, and repopulate those places with hungry recent college graduates who are just now realizing that their generation just got stuck with the bill without ever having been invited to the party.
Or.......we can sit around and say to ourselves that there's nothing we can do about it until the currency and the government fails. When nobody is held accountable, the looting will not stop until there's nothing left to loot.
Bob, I don't disagree with most of what you're saying here. Problem is politicians mostly do the bidding of the power elite. If you throw them out (not a bad idea), there's still a good chance the next crop that comes in will be similar to the one that left.
Honesly, I think it's too late. Not enough people are willing to make the drastic changes in their lives necessary to take back our government from the power elite who run it. That's primarily because we want the government to make us financially secure, a responsibility it was never supposed to take on. The best we can do now is damage control. It's still worth doing the best we can, but the chances of the kind of radical change you're proposing are quite slim given the mindset of most Americans today.
Um no. Ultimately, it's your responsibility to understand a contract before you sign it. This does not absolve greedy lenders or lack of government oversight. But untimately, it's a government for the people and by the people. So the responsbility still comes back to us no matter how you look at it.
what about those that got into something that they very well could afford and then were slapped in the face with a job loss and not able to sell their current homes because of the market out there right now?
It is sickening....
Tough luck. Society rewards irresponsibility now, not responsibility.
Ultimately your situation I've seen before and sometimes it's just sorry that's the way it is.
My parents got with a similar situation back in 1986, instead it was the military. They had expected to stay in one place for five years so they bought a house and of course the military had other plans so after 2 years we had to leave. Local economic conditions were poor at the time, so they rented it out instead with the short fall in rent compared to the mortgage costs. I remember those years as being harder, since that house sitting 1500 miles away was a drag on the household finances.
However there was a silver lining. My mom paid the mortgage off early and the monthly rent checks helped put us kids through college. Eventually after 15 years of renting it, they sold it and rolled that money into purchasing the land their retirement home sits on now.
Um no. Ultimately, it's your responsibility to understand a contract before you sign it. This does not absolve greedy lenders or lack of government oversight. But untimately, it's a government for the people and by the people. So the responsbility still comes back to us no matter how you look at it.
It does but I think people have started viewing government as mommy and daddy with them as little children. And as such incapable of making choices for themselves or taking responsibility for their mistakes.
Whether house prices are high or low, it doesn't matter. You don't sign up to buy things you can't afford. From what I've seen renting is always cheaper than all the housing costs carrying a mortgage and maintenance.
Would I like a big timber framed house to live in? Yes I would. Can I afford it? Probably not. What i can afford with a significant down payment and a 12 month buffer of saved mortgage payments is a small modular home and that's what I'll be getting.
Would I like a used Aston Martin? Yes I would. Can I afford it? Probably not. What I can afford is my paid for off lease european car and that is probably what I'll be driving for a while. When I have the cash perhaps I'll buy a used older Jaguar for fun days.
So there are a lot of things out there many of us want, but are beyond our reach and hence even if the bank allows us to sign our life away that doesn't mean we should.
Personally I have no guilt when someone looses their granite countertopped McMansion when all they could afford was a house half the size. Too bad. It's up to everyone to inform themselves and make their own decisions. Me or some government bureaucrat or anyone else out there can't do that for you. If those decisions end up being poor decisions then they have to take the consequences for it.
If some clown can get bailed out by obama due to his foreclosed house, then I don't see why I can't have my Aston Martin for a few months without making payments and then have the guvment bail me out. Can't see the difference really.
When the congress had hearing they learned that basically many who bought homes could not ahve afforsd them on fixed rate 30 year loans in teh first place. 505 that goit rfianced where in foreclosure by april again. Also it would take investment gropus going in with teh governamnt o value the homes and put moeny up. Isn't likel;y as n one wants the governamnt as a aprtner after chrysler deal and bailouts of banks except as a last resort.Better to let the market take its course.
It does but I think people have started viewing government as mommy and daddy with them as little children. And as such incapable of making choices for themselves or taking responsibility for their mistakes.
Agreed, and unfortunatley, that's exactly how are government wants it to be. It gives them all the right in the world to just walk in and take control of every aspect of our daily lives - and than charge (tax) us to pay the bill. Remember the quote: Those who trade freedom for security have neither.
This entire thing makes me sick. I don't believe that anyone (unless it is due to a sickness or loss of job,something that is life altering) should be helped.... they bought a home they couldn't afford,they are choosing to walk away, some type of punishment needs to happen.
I have a question though and have posted this several times...
I am curious to know if anyone feels that those that have HAD to try to sell their homes and cannot,should be helped?
For those that haven't seen my previous posts... here it goes ...
We are a couple in our 40's... established, well educated(not that that means anything,but....) husband has great job... we built a home in an area that we intended on making our home for a very long time... at least until our children (who are very young right now-youngest is 3) graduated from high school. Loved the area,job going great... or so we thought....
Finds out that husband's company is going through restructuring, but then eventually,just shutting down .
He tried to find employment in our area, with no such luck,at all.
Offered a great job finally,but out of state. Myself and our children stayed back for approx 4 mos while husband went to work new job, living in corporate housing. Not even one showing on our brand new ,beautiful home,let alone an offer!
We had our house on the market for 7mos with absolutely no activity whatsoever,tons of foreclosures beginning to happen. We now have tenants,but they were not able to pay us enough in rent to cover the entire mortgage,so we are now paying for part of that mortgage in addition to rent (rent to own) home in our new area.
We felt it was best not to purchase yet as we had(have) no idea how long our home will be on the market...
We now have to use all of the foreclosures in our previous neighborhood as comps to our brand new house when we put it back on the market,after our tenants lease is up.
We are potentially going to loose thousands and thousands of dollars,all because there are so many people living in those homes that should have never,never bought them to begin with!
It is infuriating to us.
In addition,we have watched several people in our old area just walk away.. walk away,renting beautiful homes now and living life as though that home never even existed!
They walked away from their responsibility because they just didn't want to foot the bill anymore.
In the meantime, I am going to look for a pt job to try to keep us above water while paying for 2 homes and all of the other bills that come with life.... my husband works hard, we both went to college and thought that if you went to college,that meant you got a good job,you could pay your bills... well.. not really. Not if you choose the responsible route.
Let me be very clear here. We are responsible people ,we did not build a home we couldn't afford,we put down a decent down payment,we intended on being there for a very long time. We didn't have an ARM, we built a house well within our means. We DID NOT build our home with the intention to one day having to pay for it and another home as well!
I don't think there are many people who could say that paying for 2 homes wouldn't break them,eventually. Of course,there are those that own Summer homes,etc... we don't.
We are sick and we want someone to help "us" and those that are like us!
We were relocated due to a job loss and we are current on our mortgage and all of our other bills. We don't have a ton of charge cards. We.Are.Responsible.People.
Instead of helping those who chose to stop paying their mortgages just because they got into something they shouldn't have to begin with... what about those that got into something that they very well could afford and then were slapped in the face with a job loss and not able to sell their current homes because of the market out there right now?
It is sickening....
Go back 30 years.
Bought house in our budget.
Hubs had a life threatening illness.
Main income lost.
House had to be sold for less than it was worth because we just could not pay for it.
A few years but we satisfied the loan.
Isn't that what adults do? No now they build a house as an "investment" not as a home. Learn and move on, get that sucker sold and that monkey off your back! It is just four walls, not your family. This stress is going to be the end of you.
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