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I hear so much about the mortgage crisis, foreclosures and potential bailouts. But, I'm wondering are there any other homeowners out there who are bailing themselves out?
We bought our first home 2 1/2 years ago in a nice (yes, really) Cleveland suburb, at the top of the market as it turns out. Prices here didn't seem too inflated, and we wanted to be in a home before our first child was born. Yes, I was nesting! We bought well within our price range, probably half what we could have qualified for. Now, needing to be closer to my dad as he gets older, we've decided to move. We put $25,000 into a finished basement and are now listed $10,000 below what we paid. We've done everything possible for our home to show like a model home, but have had no offers. It looks like we'll have to bring at least $20,000 to close, if we ever even get an offer. We will have to empty out all our savings, or maybe take out a loan to pay off our mortgage. And we can thank greedy/irresponsible lenders and buyers for this decline in home values. The responsible people are, yet again, stuck paying for the mistakes of others. When are we going to reward responsibility instead of penalizing it? Rant, rant, ,rant...
I hear so much about the mortgage crisis, foreclosures and potential bailouts. But, I'm wondering are there any other homeowners out there who are bailing themselves out?
We bought our first home 2 1/2 years ago in a nice (yes, really) Cleveland suburb, at the top of the market as it turns out. Prices here didn't seem too inflated, and we wanted to be in a home before our first child was born. Yes, I was nesting! We bought well within our price range, probably half what we could have qualified for. Now, needing to be closer to my dad as he gets older, we've decided to move. We put $25,000 into a finished basement and are now listed $10,000 below what we paid. We've done everything possible for our home to show like a model home, but have had no offers. It looks like we'll have to bring at least $20,000 to close, if we ever even get an offer. We will have to empty out all our savings, or maybe take out a loan to pay off our mortgage. And we can thank greedy/irresponsible lenders and buyers for this decline in home values. The responsible people are, yet again, stuck paying for the mistakes of others. When are we going to reward responsibility instead of penalizing it? Rant, rant, ,rant...
Hey do the right thing and keep going. We all get the short straw once in a while. The gods have a sense of humor...but mostly they don't give you more than you can handle.
Our value has dropped 250 or 300K from peak. We really don't mind. We were not going to move. But if we were we would rather do it up 250K than down. My mothers little weekend place to which she moved in her old age is now worth close to a million dollars. She bought it some years ago for 35K. And you know...she does not much care what it is worth either. She is determined to stay there until they cart her off on a gurney.
So hang in there. The next one will work better. On the good side you will be away from Cleveland and that is almost as good as being away from Michigan.
I may get railed for saying this. But isn't it better to do a short sale or just a deed in lieu of foreclosure? Rather than emptying out your savings or taking out a loan to pay off the mortgage? Your credit may get trashed but at least you have your savings still in tact and your credit can always be rebuilt.
A year ago I would have never said something like this, but today I just don't see the point in doing the right thing. Your money was stolen by the corporations/wall street/congress, so why should we care anymore. They made all this money on the interest you were paying and took your downpayment if you put any, so why stress over trying to do the right thing?
[quote=sheenie2000;6151381] But isn't it better to do a short sale or just a deed in lieu of foreclosure? Rather than emptying out your savings or taking out a loan to pay off the mortgage? Your credit may get trashed but at least you have your savings still in tact and your credit can always be rebuilt.
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The seller must demonstrate a hardship, the circumstances surrounding why the seller can not pay the difference due upon sale, including an explanation as to why the seller has already or will stop making the monthly payments. Examples of hardship are: Unemployment Divorce Medical emergencySudden Long Term IllnessBankruptcy DeathThe Seller Has No Assets: The lender will probably want to see a copy of the seller's tax returns and or a financial statement. If the lender discovers assets that you are not being truthful about, the lender may not grant the Short Sale because the lender will feel that the seller has the ability to pay the difference. Sellers with assets might still be eligible for a Short Sale but could be required to pay back the difference between the sale and the payoff amount.
Hey do the right thing and keep going. We all get the short straw once in a while. The gods have a sense of humor...but mostly they don't give you more than you can handle.
Our value has dropped 250 or 300K from peak. We really don't mind. We were not going to move. But if we were we would rather do it up 250K than down. My mothers little weekend place to which she moved in her old age is now worth close to a million dollars. She bought it some years ago for 35K. And you know...she does not much care what it is worth either. She is determined to stay there until they cart her off on a gurney.
So hang in there. The next one will work better. On the good side you will be away from Cleveland and that is almost as good as being away from Michigan.
I hear so much about the mortgage crisis, foreclosures and potential bailouts. But, I'm wondering are there any other homeowners out there who are bailing themselves out?
We bought our first home 2 1/2 years ago in a nice (yes, really) Cleveland suburb, at the top of the market as it turns out. Prices here didn't seem too inflated, and we wanted to be in a home before our first child was born. Yes, I was nesting! We bought well within our price range, probably half what we could have qualified for. Now, needing to be closer to my dad as he gets older, we've decided to move. We put $25,000 into a finished basement and are now listed $10,000 below what we paid. We've done everything possible for our home to show like a model home, but have had no offers. It looks like we'll have to bring at least $20,000 to close, if we ever even get an offer. We will have to empty out all our savings, or maybe take out a loan to pay off our mortgage. And we can thank greedy/irresponsible lenders and buyers for this decline in home values. The responsible people are, yet again, stuck paying for the mistakes of others. When are we going to reward responsibility instead of penalizing it? Rant, rant, ,rant...
You rants are justified and I'm sorry it's effected good people like you! Do you absolutely have to move? I realize your reasons but perhaps you could put it off until the market recovers, perhaps figure out a different alternative where your father is concerned. There are many options for him and your money you're willing to "bring to closing" would far better suit him in assisting his living where he is that your wanting to move to. Is your dad still independant? Retired? This is a heavy decision and one not to be taken lightly. It can cause great stress in your marriage as well, with your husband resenting having to move and losing money to do so. Money problems are the #1 cause of fighting in a marriage so think it over very carefully.
I am sure your home is beautiful and it's a shame many in this nation have to pay for the irresponsible of this nation- you and your family are not one of them. Additionally, it's a shame that the real estate that "wasn't grossly overinflated" had to take a hit in the RE market as well. My guess would be you didn't "over pay" by as much as you are ready to sell for. You've been in 2 1/2 years and in a market that had steady growth, not overinflated growth. Some appreciation should surely come your way in a couple of more years. The market is just bad, overall, for many reasons, and it's not just becuause your particular house isn't priced right. There just aren't enough buyers so buyers have come to the expectation that they are now in control of "prices" and getting, IMO, to good of deals right now. All it takes is a few sellers to concede to the "low prices" and it makes the rest of the reasonable sellers look bad. Hankg in there. And let us know how it turns out.
I read an article in the local paper how people are fighting tax assessments. A few years back, people who bought properties wanted others to pay higher assessments as well. That made for bad blood, let me tell you.
Now with property prices falling, people who purchased a few years ago want their tax assessments lowered to compare with people buying similar properties at lower prices. All this is creating a headache for the property tax assessors and will end up costing the townships and cities some tax revenue.
I heard more than one economist say that property values falling is a good thing and we should let it happen. If you can ride it out, or want to buy now, he may be right. Everybody is getitng screwed short term, investors, home owners, lenders, companies.
And we can thank greedy/irresponsible lenders and buyers for this decline in home values. The responsible people are, yet again, stuck paying for the mistakes of others. When are we going to reward responsibility instead of penalizing it?
You can thank the greedy/irresponsible lenders and buyer for your home price being inflated to more than it was really worth when you bought it. The current decline is more of an adjustment to what the market value should have been before. Anybody that wasn't blind or half retarded could see how inflated home prices were then and still are now.
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I hear so much about the mortgage crisis, foreclosures and potential bailouts. But, I'm wondering are there any other homeowners out there who are bailing themselves out?
We bought our first home 2 1/2 years ago in a nice (yes, really) Cleveland suburb, at the top of the market as it turns out. Prices here didn't seem too inflated, and we wanted to be in a home before our first child was born. Yes, I was nesting! We bought well within our price range, probably half what we could have qualified for. Now, needing to be closer to my dad as he gets older, we've decided to move. We put $25,000 into a finished basement and are now listed $10,000 below what we paid. We've done everything possible for our home to show like a model home, but have had no offers. It looks like we'll have to bring at least $20,000 to close, if we ever even get an offer. We will have to empty out all our savings, or maybe take out a loan to pay off our mortgage. And we can thank greedy/irresponsible lenders and buyers for this decline in home values. The responsible people are, yet again, stuck paying for the mistakes of others. When are we going to reward responsibility instead of penalizing it? Rant, rant, ,rant...
Your home value probably didn't decline more than it may have been inflated from the beginning. Plus many people are not interested in buying right now. I don't think you can blame anyone really. You knew your father was getting older when you purchased the home, so why entagle yourself just to have to sell in less than 3 years?
I agree (as usual) with middle-aged mom. Suggestion, if your dad isn't ill and in need of your immediate assistance then how about taking a breath and holding on for a while. "Some" say the housing market will begin to turn in summer of 2009. I know, that's pure speculation, but if you can hold out until the next selling season and assess at that time I would think about that. I know you were nesting during the decision to buy that home. You aren't nesting now and need to calmly look at the repercussions of rushing out of your home in this time of uncertainty. I will say to you the same thing I would say to my daughter. Take a good look at the future, make notes and talk to a financial expert you trust. I hope this helps a little bit, and I wish you the best!
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