$180-$250k projected equity loss (foreclose, finance, loan, property)

[Boo2lowkey]

I get a post card in the mail today 54 new homes will be going up for option this month. Their are 16 within 10 miles of me. Summer Gate at Southbury in Oswego, IL. We thought about purchasing in this new Subdivision last year with Nueman Homes. I believe these are the one's for Auction. We were looking at $450k for an 3900 Sq. ft. home plus an 1600 sq ft basement loaded to the gill which at this point was a reduce price. 4 br, 3.5 bath, fam rm, liv rm, din rm, kit, kit din, loft, den and 3 car gar. 2 fire places one in the master, Granite, 42" cabinets, Tray ceilings, etc. At that time they probly built up to 50 homes already with people living in. 2354 - 4223 sf were the sizes offer for the homes, starting at $327k - $476k plus your upgrades which ran around $75k plus the $50k they gave you if you finance with them. The auction bidding will be starting at $140k - $220k. The question is if you were the earlier buyers what do you do? Cut your loses and move on/foreclose, quick sale or ride it out. They are looking at $180k -$250k loss of equity projected. Thats not all they share this subdivision/area with 4 other builders such as Kimball Homes and Orleans to name a few.

[MotleyCrew]

What kind of loan? Are you asking if someone with a huge equity loss that can make the payment easily should walk simply because the market is down? Nuts. Stocks go up and stocks go down. The stupid will dump all their money into the stock market and when it crashes or drops, sell, sell, sell. Morons. You simply wait. Wait until the market picks back up. Might be 5 years or might be 15 years before we see 05 prices again. You will see your equity again. If you let your house forclose then you will be waiting to purchase another for a long time and by then, you might have your equity back. Hang in there.
I don't mean you, I mean the people who were early buyers. Maybe you mean late buyers in the development that bought at the peak.

[Boo2lowkey]

I had a agent once tell me to never buy a house at the beginning of phase 1. Wait till the second phase or third, because you'll never know where the home prices will be at the final phase.

[pghquest]

I dont EVER worry about the phase of the current market. I buy equity, and make sure I profit on the property when purchasing, so I dont need to worry about it during the down stages..

[bentlebee]

Originally Posted by Alliedrefuseworker

I had a agent once tell me to never buy a house at the beginning of phase 1. Wait till the second phase or third, because you'll never know where the home prices will be at the final phase.

Phase 1 was probable almost full...
It used to be that every 5 homes they sold the price would go up with either $5 K or $ 10K so the earlier you would buy the cheaper you could buy them.


The builders were even so stupid to build the same models \for years and years. So every one is stuck with different closing prices since 2002-2006. Now the builders are back to the prices of years ago and can't sell a home in the Tampa area and many blame investors. maybe partly true but the builders have to blame them self.

I bought as early as possible in Phases so bought them cheaper which can add to profit i made or will be making in the future.