Will the economy ever make a come back?!
- Thread starter fords8
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You and DH might not be, but I bet most people in the same neighborhood were, that dragged down the property value of whole subdivision when there are too many foreclosures and short sales.
Good for you Lauri:dance:We got a 30 year mortgage and pretended it was a 15 year. Paid a little extra every month...some months more and some months less. If we did not have extra to put down it was no big deal because the 30 year monthly payment was much less then the 15....paid it off in 12 years...it's a great feeling...but it sure does keep you from moving. LOL
When I was here in America in early 2000s, I remembered how crazy the real estate hype and houses were selling like hot cakes. My friend listed a house in VA, got multiple offers within a week and sold it for $15k more than she asked for!
During my last trip to Malaysia, I have seen the same craziness in the capital city and Singapore. My brother (who works at a bank and gets to know new housing development first hand) flipped a couple of houses in half a year, made enough money for his first house at 28. My best friend just paid over $500k for a 3 bedroom condo that she doesn't even own the land (the government lease the land for 99 years). I don't know how those newly wed couples could afford a $200k -$300k townhouse, which is a typical 3 bedroom townhouse cost in the capital city now!!
Oh, did I tell you people lined up overnight to get a number to buy a house that hasn't been built, all they see is a plan on the paper
During my last trip to Malaysia, I have seen the same craziness in the capital city and Singapore. My brother (who works at a bank and gets to know new housing development first hand) flipped a couple of houses in half a year, made enough money for his first house at 28. My best friend just paid over $500k for a 3 bedroom condo that she doesn't even own the land (the government lease the land for 99 years). I don't know how those newly wed couples could afford a $200k -$300k townhouse, which is a typical 3 bedroom townhouse cost in the capital city now!!
Oh, did I tell you people lined up overnight to get a number to buy a house that hasn't been built, all they see is a plan on the paper
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Lauri
Guest
And remember just because a house doesn't have a sale sign in front doesn't mean there are people living there. House behind me (think Lee looked at it) has been empty 2+ years and sign was taken down in hopes to help others in the same block sell faster.
It's a starter home, no basement, fenced back yard...last to live there was a family of racoons until I got them evicted.
It's a starter home, no basement, fenced back yard...last to live there was a family of racoons until I got them evicted.
I always think about the people who bought their houses decades ago, paid them off years ago, thinking someday they'd sell the house which had gone up in value to $200 or $300K to "downsize" to a cheap little condo and fund their retirement. Now they are sitting in a house that isn't worth what they paid for it in the 50, 60's, 70's etc. There are lots of little elderly people around us in that situation.
Unless they overpaid back then, it should definitely be worth more than what they paid.
My family bought this house in the 70's for around $35k. It's now worth at least 10 times that amount. Granted if I sold it I wouldn't be able to buy much better in this area but if I were retiring it would get me lots of house in less expensive areas.
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hsmomof6
Guest
We paid $58K for our house about 20 years ago and now owe about $25K and I really feel we would have a very difficult time selling it. I guess we could probably find someone to take it for about what we owe, but really that is so sad. There are lots of vacant houses around here. So much for having any hopes of a small nest egg in your home that you can use for downsizing. I am just very thankful that our payments are low and we can make them every month and not be worried about losing our home (even if I think the neighborhood has gone downhill). We were soooo tempted to move into a much more expensive/newer home back when everyone else was. Sooooo glad we didn't.
My in laws would be among those people if DH's aunt didn't make them sell the house in CA at the peak in 2006 and moved them back here in IL (where they grew up and most of their original family reside) after FIL retired from his job.
FIL moved reluctantly, but I think he should thank his lucky stars (and DH's aunt), they would have been in big financial trouble since they were counting on the house sale to finance majority part of their retirement living.
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hsmomof6
Guest
I think it depends on the neighborhood. Here the house would technically be worth more, but good luck selling it for more. With all the vacant homes and short sales I would really hate to need to sell my house. House down the street sold for $12K last year.
Not in parts of ILout: a lot would be lucky to break even at best.
I didn't realize just how low some of the housing values were there. It's amazing how much people are still asking for their homes in this area.
I'll come out and say it, judge me if you will. If I was in a situation like some of you talk about, ~$100k underwater, drugs in the neighborhood, my kids at risk, I would seriously have considered strategic default. From what I understand, when you stop paying the mortgage, you have about a year before they evict you. I would pay the bank nothing in that year, live in the house in default for free, saving every nickel for a financial cushion since my credit would be trashed for 7 years.
Thankfully DH and I bought a cheap house (definitely a one salary house) when we bought in 2002 and by nothing but timing and the grace of God we are not in an underwater situation. If we'd bought this same house in 2005 or 2006, or bought a more expensive house, we could easily be $100k underwater. DH's boss is. We are selling the house for less than what we paid 10 years ago, but I still feel we are lucky to be in a position to sell outright and not have to short sale (short sell?).
Yes, there is personal responsibility for paying, but I think strategic default is making the best financial decision for you personally and for your family's safety. It's not mrsred1's fault the economy tanked. OH and I would not feel bad for institutions like Bank of America.... they are evil
Oh and mrsmom you should definitely appeal your property taxes.
Thankfully DH and I bought a cheap house (definitely a one salary house) when we bought in 2002 and by nothing but timing and the grace of God we are not in an underwater situation. If we'd bought this same house in 2005 or 2006, or bought a more expensive house, we could easily be $100k underwater. DH's boss is. We are selling the house for less than what we paid 10 years ago, but I still feel we are lucky to be in a position to sell outright and not have to short sale (short sell?).
Yes, there is personal responsibility for paying, but I think strategic default is making the best financial decision for you personally and for your family's safety. It's not mrsred1's fault the economy tanked. OH and I would not feel bad for institutions like Bank of America.... they are evil
Oh and mrsmom you should definitely appeal your property taxes.
Our previous rental house was bought by the old landlords for $289K in June of 2007, now most of the houses on the block are going for $150K tops.
I'm actually a huge fan of the economy right now. Everyone was so surprised that we had such great credit scores, 20% down, and were able to pay the closing costs from our pockets. Those should have been the requirements to get a loan, but the banks and the home buyers got greedy. So many people who had no business owning a home bought houses driving the prices to astronomical prices. The next crisis will be student loans. Too many people are going to college and get degrees where they can't get jobs and too many people are in college that don't belong in college. Every job should not require a college degree.
A townhouse that was purchased for just under $300K just sold for $176K 1/2 block from me. I don't even pretend that I own my house any more. I'm just trying to figure out when the best time is for me to walk away and where I'll be able to find a rental that will be in an excellent school district for Lex.
