[danj55]

Originally Posted by Joe3788

Got an 80/20....Inerest only for the last 4 years. Paying $2000 a month. Still owe the full amount. We have stopped paying and started the short sale process.

And this is what irks me about the current situation.

Nothing personal, but it's just unfair that people who do outrageously irresponsible things like buying expensive property with no money down and adjustable interest rate loans, end up better off than the more responsible people.

In the end, you're likely to get out of your home with a relatively small loss and only a relatively small hit to your credit.

If you had done what I did, which was 20% down, low fixed-rate mortgage, slightly more reasonably priced real estate..... you'd be stuck with a large loss and no recourse. I've paid $70k in equity already and the home is still at least $50k underwater.

I guess reality itself is kind enough to responsible people that we can deal with the system in place being structurally unfair.

[lifelongMOgal]

Originally Posted by Joe3788

Got an 80/20....Inerest only for the last 4 years. Paying $2000 a month. Still owe the full amount. We have stopped paying and started the short sale process.

This is the kind of irresponsible behavior that is sinking this country. Thanks a lot for nothing! And d*mn if placing our children and grandchildren into debt isn't personal!

[Joe3788]

Nothing personal....Just a simple and smart business decision.

[Willy702]

Originally Posted by Joe3788

Nothing personal....Just a simple and smart business decision.

Totally understandable but a decade from now it may not seem so simple or smart. People who lost homes in the early 90s thought in the mid to late 90s they were better off especially as the 7 years passed before their credit got much better, but since 2003 or so they have not looked so well off. I know someone who struggled to make payments on a house he was upside down on in San Francisco, bought for $245k in the 1989 bubble when realtors told him it was the last chance he could ever afford a residence in SF (sound familiar?). He had to take on a lot of roomates for over 10 years to make ends meet before he eventually rented it out and moved to the suburbs. But that $1980 mortgage got refinanced down to $1300 over the years and now he rents the place for $3300 and a similar unit down the street sold for $965k a few months ago. At one point he was told he was about 35% underwater, not as bad as today's conditions, but still one where a lot of people would have just given up and turned in the keys to the bank.

Not saying LV will ever see that sort of appreciation, but still its instructive to realize why housing ownership decisions should never be taken with a short-term horizon.

[usc619]

Originally Posted by Joe3788

Got an 80/20....Inerest only for the last 4 years. Paying $2000 a month. Still owe the full amount. We have stopped paying and started the short sale process.

Atta boy

[airics]

yep and when they start coming for the deficiencies and taxes, then what.. you are headed to bankruptcy.

[Joe3788]

Prepared to pay taxes out of pocket. I will work the deficiencies into the short sale contract.

[KD Hawaii]

Originally Posted by danj55

And this is what irks me about the current situation.

Nothing personal, but it's just unfair that people who do outrageously irresponsible things like buying expensive property with no money down and adjustable interest rate loans, end up better off than the more responsible people.

In the end, you're likely to get out of your home with a relatively small loss and only a relatively small hit to your credit.

If you had done what I did, which was 20% down, low fixed-rate mortgage, slightly more reasonably priced real estate..... you'd be stuck with a large loss and no recourse. I've paid $70k in equity already and the home is still at least $50k underwater.

I guess reality itself is kind enough to responsible people that we can deal with the system in place being structurally unfair.

We bought a house in 2005 for $225,000 with NO down payment and adjustable interst rate loans. That was 80/20. We paid interest ONLY for two years. $1500 a month. We did re-fin in 07 with 100% jumbo loans. We pay mortgage payment (not interest only) for $1,700 a month and still owe $218,000...We will walk away. Short sale is not the best option because we don't want to pay taxes out of my pocket. Why should we pay when ours is 78% underwater. Sorry B of A...

[tony soprano]

Originally Posted by KD Hawaii

We bought a house in 2005 for $225,000 with NO down payment and adjustable interst rate loans. That was 80/20. We paid interest ONLY for two years. $1500 a month. We did re-fin in 07 with 100% jumbo loans. We pay mortgage payment (not interest only) for $1,700 a month and still owe $218,000...We will walk away. Short sale is not the best option because we don't want to pay taxes out of my pocket. Why should we pay when ours is 78% underwater. Sorry B of A...

Don't forget to ask for some key money.

[KD Hawaii]

Originally Posted by tony soprano

Don't forget to ask for some key money.

meaning?