What should they do?

[funkymatt]

so, if the opposite was occurring, your parents paid 100k for the house and it was now worth 300k- should their mortgage increase? They signed a contract for a 300k loan, they need to keep making those payments. If they can't make the payments they need to talk to the bank. Just because their property lost value is not a get out of loan free card.

 

[alkemyst]

Originally posted by: HappyPuppy
Walking away from the home isn't all that easy if they have money. The bank will foreclose, sell at a loss and sue for the difference + other costs.

sue for the difference? It's usually not done except in extreme circumstances...the bank is owed the home, that is it.

 

[alkemyst]

Originally posted by: jagec
They paid an inflated price for an inflated product. Sucks to be them.

This is the equivalent of the iphone early adopters griping when Apple lowered the price. Sucks, but that's market dynamics. Apple never should have given them that stupid rebate.

/edit: Besides, why should they care what the house currently appraises at? They thought it was worth $300k back in the day. Are they a bunch of filthy flippers who were hoping to make a quick buck by catching the bubble?

Stay in the house, enjoy the MUCH lower property taxes, and wait it out. Once prices pick back up (and they will), they can sell or leave the house to their children.

I've got stocks right now which are worth MUCH less than when I bought them. Should I write to the government to complain and get them to pay me for the difference? No, I just don't sell and thus realize the loss.

you do realize the main problem is one is now paying $300k on an asset that will more than likely not get back up to that from the $109k it's at now in the normal 7 years that people move at.

So what happens is you either walk away now or have to stroke a check later.

I am about $80k upside down. I will more than likely have to pay to move later.

 

[jpeyton]

Obama's bailout might help, but otherwise tell them to walk away. Being upside down $200k is a bad idea.

 

[alkemyst]

not so much $200k as being $200k upside down on a house worth $109k.

 

[MotionMan]

Originally posted by: funkymatt
so, if the opposite was occurring, your parents paid 100k for the house and it was now worth 300k- should their mortgage increase?

Originally posted by: MotionMan

Originally posted by: IsLNdbOi
I don't know much about this mortgage / financial stuff, but here it goes:

Thank you Captain Obvious - You must have learned all you know about such things from your parents.

Q(myself)FT.

MotionMan