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I have to say that what isn't fair about all of this is; the people who REALLY have to sell their homes,due to a relocation,job loss,etc )
We have a home on the market (has been on since Summer (08) ,it was just built in the Summer of 07.. only lived there a little over a year and then were relocated with company, to a different state.
The house has not even had a showing!
Currently, there are several forclosures in our neighborhood we are trying to sell in,which unfortunately,are what I believe a result of very young people living way beyond their means.
We bought within our means but were living amongst very young families that my husband & I would always say "how in the world are they affording their house,let alone the rest of life's expenses??" well... now most of those people are in forclosure,now we know what happened.
HOWEVER,we did not buy a house we couldn't afford, we have just had some very bad luck with being relocated so soon,completely unexpected.
NOW, because of these forclosures,short sales, our home has decreased in value by almost $190K...
Not sure that anyone,regardless of whether they bought within in their means,could afford that much of a loss in a year...
So no,not fair that some people who were irresponsible may get "bailed out".
I say what about the people who have to sell and can't now because of these type of risky loans,arms,irresponsiblity,etc... ???
(kidding-of course) ,it is just frustrating!
Was your DP more than the $190k? Are you considering walking away? Foreclose. I assume that is your best financial decision but I am sure you don't want your credit nailed either. Sorry to hear it.
Was your DP more than the $190k? Are you considering walking away? Foreclose. I assume that is your best financial decision but I am sure you don't want your credit nailed either. Sorry to hear it.
Oh gosh no... thank goodness we aren't in that bad of a position. No, we will not be going to forclosure at all... won't let it happen,will work 2 jobs before we let that happen honestly.
We are okay right now,but time will tell how much of a loss we will really have to take.
House is just sitting on the market and now have it as rental or lease to own option as well...
NY.... prices are not coming back anytime soon. If you've been on the market since the summer and nobody comes, then lower your price. Yes, it sucks. You're better off taking a smaller hit now then a bigger hit later. You'll look back in a year and be thankful for what you got for the house.
If all the houses that are comps are between $500-550, then make yours $470 to create excitement. You will see action, and possibly one or MORE offers. Chances are you'll sell for the $470, or maybe above asking. We still have multiple bids in this market on homes that are priced to EXCITE.
We still don't know if money was gained or not...we have no proof that the previous seller put a lot of money into the house to upgrade it which can be done within a few days....
On the other hand the new buyers aren't the smartest ones, since with so many homes on the market they could buy a bankowned them self instead of losing out of the equity right away so stupidity is still going on....
Really?
Appliances and maybe a coat of paint on the inside. Hardly alot of money.
You also have no knowledge of the market here to say that the buyers aren't smart. As I stated $192K was still below comparable homes in the area.
You really do not have enough knowledge regarding real estate to make the kind of claims that you do.
Lets see you buy a new car and the minute you drive away it has lost value. Chances are with many cars you can lose 20% or more of the value the day you drive off the lot. Within a 2 year time frame I bet you are down by 30% or more. Do you stop making payments on the car or give it back to the bank because the value has declined?
When you buy that big screen tv set to watch the superbowl, guess what? The TV lost value the minute you turned it on and started watching the game. Do you tell your favorite electronics store that you want them to take it back because it isn't worth what you paid for it?
You bought a home for $600,000 and now the home is worth $300,000. Why are you giving it back to the bank, walking away from it, or neglecting to make payments on the home?
I just have no clue why the world is falling apart. Didn't the people that bought the homes have a plan to pay for them? When the home they purchased was twice what it is now, didn't they have a plan to make the payments? What has changed that they can not now make the payments on the home? No one knew what was going to happen and yet people are upset that they have to pay for something that they signed up for. Why is that?
I can understand if you have lost your job and can not find a way to swing the deal. I can't understand the others that are still working and have decided to let the homes go back to the bank or walk away from them because things didn't go their way. Some people are going to say that they didn't understand how an ARM worked. Fine for them, and they still signed their name on the bottom line anyway without consulting someone that knows better. Others are going to say that they thoght it would keep going up and they would refinance to a fixed rate mortgage. Guess what, things don't always work out like that. What was plan B if things didn't go the way you wanted? I guess for many it is to stop paying on the note, walk away from it all, or hope that the Government has a rescue plan for them. "Why make me pay for this when I didn't understand what I was getting into?"
Lets see you buy a new car and the minute you drive away it has lost value. Chances are with many cars you can lose 20% or more of the value the day you drive off the lot. Within a 2 year time frame I bet you are down by 30% or more. Do you stop making payments on the car or give it back to the bank because the value has declined?
When you buy that big screen tv set to watch the superbowl, guess what? The TV lost value the minute you turned it on and started watching the game. Do you tell your favorite electronics store that you want them to take it back because it isn't worth what you paid for it?
You bought a home for $600,000 and now the home is worth $300,000. Why are you giving it back to the bank, walking away from it, or neglecting to make payments on the home?
I just have no clue why the world is falling apart. Didn't the people that bought the homes have a plan to pay for them? When the home they purchased was twice what it is now, didn't they have a plan to make the payments? What has changed that they can not now make the payments on the home? No one knew what was going to happen and yet people are upset that they have to pay for something that they signed up for. Why is that?
That is a very true and accurate assessment of the situation. Yes, people (in my opinion) are getting depressed that their house is worth less than it was because it was supposed to be a great investment so they are finding an excuse and walking away. That same excuse (I lost my job, my dad has medical problems, etc, etc) would not have caused them to walk away when prices were going up 10k a month. They would have found soem way to make mortgage payments, even by working 2 jobs, because it was a great investment.
The problem is no government bailout can force housing prices back up, so we are stuck with this. The average Seattle house has gone down 100k (20% on average) and there are a lot of houses in the Puget Sound. There is no possible way that the government can refund 100k to everyone.
Nor should they - the whole housing bubble was unsustainable. Three years ago, few people under the age of 27 or so were able to afford a house because they were going up so fast. It has to come down if every house costs more than the new generation can afford.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,589,708 times
Reputation: 677
Quote:
Originally Posted by SOON2BNSURPRISE
Lets see you buy a new car and the minute you drive away it has lost value. Chances are with many cars you can lose 20% or more of the value the day you drive off the lot. Within a 2 year time frame I bet you are down by 30% or more. Do you stop making payments on the car or give it back to the bank because the value has declined?
When you buy that big screen tv set to watch the superbowl, guess what? The TV lost value the minute you turned it on and started watching the game. Do you tell your favorite electronics store that you want them to take it back because it isn't worth what you paid for it?
You bought a home for $600,000 and now the home is worth $300,000. Why are you giving it back to the bank, walking away from it, or neglecting to make payments on the home?
I just have no clue why the world is falling apart. Didn't the people that bought the homes have a plan to pay for them? When the home they purchased was twice what it is now, didn't they have a plan to make the payments? What has changed that they can not now make the payments on the home? No one knew what was going to happen and yet people are upset that they have to pay for something that they signed up for. Why is that?
I can understand if you have lost your job and can not find a way to swing the deal. I can't understand the others that are still working and have decided to let the homes go back to the bank or walk away from them because things didn't go their way. Some people are going to say that they didn't understand how an ARM worked. Fine for them, and they still signed their name on the bottom line anyway without consulting someone that knows better. Others are going to say that they thoght it would keep going up and they would refinance to a fixed rate mortgage. Guess what, things don't always work out like that. What was plan B if things didn't go the way you wanted? I guess for many it is to stop paying on the note, walk away from it all, or hope that the Government has a rescue plan for them. "Why make me pay for this when I didn't understand what I was getting into?"
I hear ya, bro! Great post and rep points for you!
That is a very true and accurate assessment of the situation. Yes, people (in my opinion) are getting depressed that their house is worth less than it was because it was supposed to be a great investment so they are finding an excuse and walking away. That same excuse (I lost my job, my dad has medical problems, etc, etc) would not have caused them to walk away when prices were going up 10k a month. They would have found soem way to make mortgage payments, even by working 2 jobs, because it was a great investment.
Quote:
The problem is no government bailout can force housing prices back up, so we are stuck with this. The average Seattle house has gone down 100k (20% on average) and there are a lot of houses in the Puget Sound. There is no possible way that the government can refund 100k to everyone.
Nor should they - the whole housing bubble was unsustainable. Three years ago, few people under the age of 27 or so were able to afford a house because they were going up so fast. It has to come down if every house costs more than the new generation can afford.
Well said!
Great post, Bigtrees. You get brownie points, too...
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