Upside-down on your mortgage?

[dmcowen674]

Originally posted by: thomsbrain

Originally posted by: Jumpem

I am not terribly concerned about being in an upside down situation though. Our neighbors are great and we both have good jobs in the area. I don't plan on moving in the next 8-10 years at the earliest.

Yeah, even accounting for the recent downturn since you bought, AND accounting for the chance that there's another downturn in 10 years, I think the appreciation that will happen in the meantime is plenty to cover that and make sure you have positive equity if you need to move. And if you live there for 30 years, it's almost a non-issue. Do you think the previous generation is still wringing their hands over whether they paid $5000 or $6000 for a house that is now worth $600,000? Time and inflation smooth these things out.

And if you don't have time, you should have been renting instead of buying.

For years all I heard was how renting is throwing money away.

I've always bought because rent payments and mortgage about the same but mortgage was supposed to be good for tax deduction and "equity" build up.

Obviously the drop in real estate value wipes out any "equity build up" these days so I can see people saying just rent now. Rediculous.

I'm trying to rent out the house now but live in an area people don't have the money to pay the rent amount that would cover the mortage.

People are screwed no matter what now.

There is going to be a huge boom in public housing in this country and all of this is by design and you people don't see it.

Public housing sector was in shambles and all needed re-building or torn down and start over. This totally designed housing crisis is the ticket.

Between the high gas and fuel costs and housing situation, it is the only solution other than the Tent cities popping up.

 

[Kntx]

Originally posted by: cKGunslinger
It might not be financially smart, but we have moral issues with walking away from debt. We could have easily filed for bankruptcy several years ago, but chose to rather tighten down and pay off our overwhelming debts as best we could. After all, we racked them up - doesn't seem right to just let someone else eat our mistakes, just because they are "faceless" bank/corporations.

I'm thinking we'll just smartly try to improve the value of our house as much as possible.

The faceless bank wouldn't have any moral issues with throwing your family out on the street if it came to that. Keep it in mind.

 

[Pliablemoose]

You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

 

[MixMasterTang]

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

I think everyone got hit a little bit. I know houses in my neighborhood are now going for about 7-10% less than they were around a year ago and I'm just outside of Kansas City.

 

[TheSlamma]

Originally posted by: dmcowen674
Between the high gas and fuel costs and housing situation, it is the only solution other than the Tent cities popping up.

LOL classic dave.. always looking to the most extreme he possibly can.

Comparing todays economy with the great depression, comparing todays government with Nazi Germany.

 

[skyking]

Originally posted by: HomeBrewerDude
I've heard of some people walking away from condo/vacation homes, especially when you add in condo association fees etc... When will these type of properties look good again? I wouldn't mind having a house on or near a beach in some place warm.

That appeals to me also. The nice stuff is so overvalued right now, I think it will take some time.

 

[JEDI]

Originally posted by: cKGunslinger

Originally posted by: XZeroII

Originally posted by: cKGunslinger
It might not be financially smart, but we have moral issues with walking away from debt. We could have easily filed for bankruptcy several years ago, but chose to rather tighten down and pay off our overwhelming debts as best we could. After all, we racked them up - doesn't seem right to just let someone else eat our mistakes, just because they are "faceless" banks/corporations.

I'm thinking we'll just smartly try to improve the value of our house as much as possible.

You get a gold star in my book :thumbsup:

Thanks. That and $1.30 will get me a cup of coffee.

But yeah, I guess we'll just have to stick it out a bit longer. I was just getting that "want a bigger home" itch, seeing as we bought a starter home a bit early and were planning to trade up about now.

should have declared bankrupcy b4 the new bankrupcy laws took effect. would have probably made your life a whole lot easier.

morals get in the way of everything

 

[Pliablemoose]

Originally posted by: dmcowen674

Originally posted by: thomsbrain

Originally posted by: Jumpem

I am not terribly concerned about being in an upside down situation though. Our neighbors are great and we both have good jobs in the area. I don't plan on moving in the next 8-10 years at the earliest.

Yeah, even accounting for the recent downturn since you bought, AND accounting for the chance that there's another downturn in 10 years, I think the appreciation that will happen in the meantime is plenty to cover that and make sure you have positive equity if you need to move. And if you live there for 30 years, it's almost a non-issue. Do you think the previous generation is still wringing their hands over whether they paid $5000 or $6000 for a house that is now worth $600,000? Time and inflation smooth these things out.

And if you don't have time, you should have been renting instead of buying.

For years all I heard was how renting is throwing money away.

I've always bought because rent payments and mortgage about the same but mortgage was supposed to be good for tax deduction and "equity" build up.

Obviously the drop in real estate value wipes out any "equity build up" these days so I can see people saying just rent now. Rediculous.

I'm trying to rent out the house now but live in an area people don't have the money to pay the rent amount that would cover the mortage.

People are screwed no matter what now.

There is going to be a huge boom in public housing in this country and all of this is by design and you people don't see it.

Public housing sector was in shambles and all needed re-building or torn down and start over. This totally designed housing crisis is the ticket.

Between the high gas and fuel costs and housing situation, it is the only solution other than the Tent cities popping up.

The sub prime fiasco was a conspiracy? Dave you need to get a grip, it's no more a conspiracy than an infomercial is a conspiracy to talk someone out of their money.

I'm a single parent, have retirement savings and have equity in my home. I also work my ass off, and research my purchases and life choices before signing my life away.

Claiming your failures in life are the result of a conspiracy is a lame excuse.

:thumbsdown:

 

[Alistar7]

Originally posted by: Pliablemoose

Originally posted by: dmcowen674

Originally posted by: thomsbrain

Originally posted by: Jumpem

I am not terribly concerned about being in an upside down situation though. Our neighbors are great and we both have good jobs in the area. I don't plan on moving in the next 8-10 years at the earliest.

Yeah, even accounting for the recent downturn since you bought, AND accounting for the chance that there's another downturn in 10 years, I think the appreciation that will happen in the meantime is plenty to cover that and make sure you have positive equity if you need to move. And if you live there for 30 years, it's almost a non-issue. Do you think the previous generation is still wringing their hands over whether they paid $5000 or $6000 for a house that is now worth $600,000? Time and inflation smooth these things out.

And if you don't have time, you should have been renting instead of buying.

For years all I heard was how renting is throwing money away.

I've always bought because rent payments and mortgage about the same but mortgage was supposed to be good for tax deduction and "equity" build up.

Obviously the drop in real estate value wipes out any "equity build up" these days so I can see people saying just rent now. Rediculous.

I'm trying to rent out the house now but live in an area people don't have the money to pay the rent amount that would cover the mortage.

People are screwed no matter what now.

There is going to be a huge boom in public housing in this country and all of this is by design and you people don't see it.

Public housing sector was in shambles and all needed re-building or torn down and start over. This totally designed housing crisis is the ticket.

Between the high gas and fuel costs and housing situation, it is the only solution other than the Tent cities popping up.

The sub prime fiasco was a conspiracy? Dave you need to get a grip, it's no more a conspiracy than an infomercial is a conspiracy to talk someone out of their money.

I'm a single parent, have retirement savings and have equity in my home. I also work my ass off, and research my purchases and life choices before signing my life away.

Claiming your failures in life are the result of a conspiracy is a lame excuse.

:thumbsdown:

OMG they got to moose too, we're all doomed....

 

[Pliablemoose]

Originally posted by: Alistar7

OMG they got to moose too, we're all doomed....

All your mortgages are belong to us.....

 

[cKGunslinger]

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

It's not just that. I live in rural north Texas, bought a cheap house, yet overpaid for it, put next to no money down, paid exorbitant amounts of finance charges which were rolled into the mortgage, etc.

In short, I spent more time researching my last video card purchase than I did my 30-year-mortgaged house.

It's be easy to blame it on my wife, as she was pushing hard and heavy for a house instead of our apartment, but I should have had a bit more backbone in the early years of my marriage. Being young and foolish does indeed have consequences.

 

[Slew Foot]

Originally posted by: cKGunslinger

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

In short, I spent more time researching my last video card purchase than I did my 30-year-mortgaged house.

And that's why the bubble will pop hard. If an average ATOT member (who I think is overall a bit smarter than the average American) spends that little time thinking about the biggest purchase in their life, how much are they really absorbing all the nuances of home ownership? That why you hear all these idiots saying they didnt know their payments were going to rise, they just signed away the mortgage contract like a blind moron.

 

[Pliablemoose]

Originally posted by: Slew Foot

Originally posted by: cKGunslinger

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

In short, I spent more time researching my last video card purchase than I did my 30-year-mortgaged house.

And that's why the bubble will pop hard. If an average ATOT member (who I think is overall a bit smarter than the average American) spends that little time thinking about the biggest purchase in their life, how much are they really absorbing all the nuances of home ownership? That why you hear all these idiots saying they didnt know their payments were going to rise, they just signed away the mortgage contract like a blind moron.

I hear you, gotta admit the spousal units can be pretty demanding though, I gave mine a list, I wanted natural gas heat, and city water & sewer, other than that I gave her a price range.

She's gone for 2 years now, & I still have the house (and >50% equity

 

[mugs]

Originally posted by: dmcowen674
There is going to be a huge boom in public housing in this country and all of this is by design and you people don't see it.

Public housing sector was in shambles and all needed re-building or torn down and start over. This totally designed housing crisis is the ticket.

:laugh: Man, you are one crazy mofo.

 

[ponyo]

Originally posted by: mugs

Originally posted by: dmcowen674
There is going to be a huge boom in public housing in this country and all of this is by design and you people don't see it.

Public housing sector was in shambles and all needed re-building or torn down and start over. This totally designed housing crisis is the ticket.

:laugh: Man, you are one crazy mofo.

problem is there's some small lining of brilliance in some of his thought. You just have to filter out 99% of the rubbish and be crazy yourself to see it. I can definitely see it but people say I'm crazy too.

 

[Pliablemoose]

Originally posted by: mugs

Originally posted by: dmcowen674
There is going to be a huge boom in public housing in this country and all of this is by design and you people don't see it.

Public housing sector was in shambles and all needed re-building or torn down and start over. This totally designed housing crisis is the ticket.

:laugh: Man, you are one crazy mofo.

It's Dave, nothing is his fault, so he doesn't learn from his mistakes.

 

[Greenman]

Originally posted by: Slew Foot

Originally posted by: cKGunslinger

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

In short, I spent more time researching my last video card purchase than I did my 30-year-mortgaged house.

And that's why the bubble will pop hard. If an average ATOT member (who I think is overall a bit smarter than the average American) spends that little time thinking about the biggest purchase in their life, how much are they really absorbing all the nuances of home ownership? That why you hear all these idiots saying they didnt know their payments were going to rise, they just signed away the mortgage contract like a blind moron.

I think that's only partially correct. Most people that got into sub prime loans were speculating. They assumed that they would sell in five years and make a tidy profit using none of their own money, and a lot of them pulled it off.
The reality is that everyone needs a place to live, most would rather own than rent, and most of those would like to own in a nice area.
I'm betting sales start to increase next summer, and prices start climbing again, in fact I'm thinking about buying a rental around that time.

 

[Slew Foot]

Originally posted by: Greenman

Originally posted by: Slew Foot

Originally posted by: cKGunslinger

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

In short, I spent more time researching my last video card purchase than I did my 30-year-mortgaged house.

And that's why the bubble will pop hard. If an average ATOT member (who I think is overall a bit smarter than the average American) spends that little time thinking about the biggest purchase in their life, how much are they really absorbing all the nuances of home ownership? That why you hear all these idiots saying they didnt know their payments were going to rise, they just signed away the mortgage contract like a blind moron.

I think that's only partially correct. Most people that got into sub prime loans were speculating. They assumed that they would sell in five years and make a tidy profit using none of their own money, and a lot of them pulled it off.
The reality is that everyone needs a place to live, most would rather own than rent, and most of those would like to own in a nice area.
I'm betting sales start to increase next summer, and prices start climbing again, in fact I'm thinking about buying a rental around that time.

Most people already have a home, the people who dont for the most part, are subprime and cant qualify for a loan, have good credit and cant afford a house at current prices, recently foreclosed and are shunned by banks, investors who are smart enough not to buy cash flow negative in depreciative environment. 7 million units for sale in a country where a typical year sells 2-3 million? That's an oversupply thatll push prices down until two things happen, rents and comes in line with monthly carry, and prices come in line with incomes.

 

[Eeezee]

You have to remember that while housing is going into a slump now, it will come out of it eventually. You could just sit on the house, pay your payments, and move out once you're able to sell the house for the remainder of the mortgage.

 

[Greenman]

Originally posted by: Slew Foot

Originally posted by: Greenman

Originally posted by: Slew Foot

Originally posted by: cKGunslinger

Originally posted by: Pliablemoose
You're in Dallas, right? I didn't think we were getting hit that hard by the subprime mess...

In short, I spent more time researching my last video card purchase than I did my 30-year-mortgaged house.

And that's why the bubble will pop hard. If an average ATOT member (who I think is overall a bit smarter than the average American) spends that little time thinking about the biggest purchase in their life, how much are they really absorbing all the nuances of home ownership? That why you hear all these idiots saying they didnt know their payments were going to rise, they just signed away the mortgage contract like a blind moron.

I think that's only partially correct. Most people that got into sub prime loans were speculating. They assumed that they would sell in five years and make a tidy profit using none of their own money, and a lot of them pulled it off.
The reality is that everyone needs a place to live, most would rather own than rent, and most of those would like to own in a nice area.
I'm betting sales start to increase next summer, and prices start climbing again, in fact I'm thinking about buying a rental around that time.

Most people already have a home, the people who dont for the most part, are subprime and cant qualify for a loan, have good credit and cant afford a house at current prices, recently foreclosed and are shunned by banks, investors who are smart enough not to buy cash flow negative in depreciative environment. 7 million units for sale in a country where a typical year sells 2-3 million? That's an oversupply thatll push prices down until two things happen, rents and comes in line with monthly carry, and prices come in line with incomes.

Do you have a link to where those inventory and sales numbers came from? I'd like to read a bit more about it, but I can't find stats that are anything close to what you stated. The very worst report I've found states an 11 month inventory at todays reduced sales figures.
I'm not trying to put you on the spot, I'm trying to determine if I've been operating on incorrect data. I'm a builder, it matters to me.

 

[JulesMaximus]

Originally posted by: cKGunslinger

Just curious, if you are upside-down on your mortgage (you owe more than you could sell the house for,) are you pretty much screwed? Is it possible to sell your house for 90% of its value, buy a new house, and roll the 10% difference into the mortgage for a new house, similar to the way you'd do it for a car (I'm guessing?)

Aren't there laws that dictate that you can't finance more than X% of your home's value? Or would you have to seller-finance your old home and use their payments + your cash to continue paying the mortgage?

Just curious, as prices took a huge downturn in our area and I was considering getting out in the next 3-5 years, but it doesn't look good.

You can't finance more than a home is worth. No lender would be that stupid. Your best bet is to just hold onto it...assuming you can make the payments.

 

[everman]

Originally posted by: vi_edit

Originally posted by: cKGunslinger
I was browsing and ran across this house for sale:

Text

3/4 mile from my kids' schools, bigger than our current, better neighborhood, established landscaping, etc. About $30K *less* than we owe on ours.

I so wish I could go back and rethink our house purchase.

That carpet burned my eyes.

The goggles! They do nothing!

 

[BoomerD]

not yet...if the Kahleeforneeya market continues the implosion it's currently undergoing....then who knows? Currently, the house is still worth almost 3X what we paid for it in 1999, so we SHOULD be sitting pretty well...

 

[I Saw OJ]

94k for that nice home?!

Damn...I gotta move out of California...

 

[LegendKiller]

Typical dave posts. He doesn't realize that the "problem", which he claims is a conspiracy, will only affect a small portion of the population. As prices decrease people who can afford houses, will, those who can't, will take their places in apartments. Tent cities are a ridiculous notion from a ridiculous person.

As far as refi, good luck finding something that'll give you 100%+.

As far as a short sale, you should live up to your obligations, if you can't, take the hit and learn.

If anything, this boom will be a lesson to millions. Don't be stupid.