Posted on: 29th Jul, 2008 12:37 pm
Is it fair that some folks continue making high payments for a reduced asset?
Something has to give somewhere for those folks that have held on to their properties and have continued to pay their mortgages on much higher balances that what the houses are now worth. This is equivalent to be paying a big chunk of your income in something you don't have and never will, and somehow, there must be a way out somehow legally!! I would love to write off my loss and have my payments reduced to what the house is now worth. To do this, someone else being the bank or the government must also do a write off.
Something has to give somewhere for those folks that have held on to their properties and have continued to pay their mortgages on much higher balances that what the houses are now worth. This is equivalent to be paying a big chunk of your income in something you don't have and never will, and somehow, there must be a way out somehow legally!! I would love to write off my loss and have my payments reduced to what the house is now worth. To do this, someone else being the bank or the government must also do a write off.
Purchasing a home is an investment and like all investments, there is a risk involved. The only way out for now is to sell the property and take the loss or allow it to go into foreclosure. The best option would be to consider the long term investment. Hold on to the property and hope that the values will rise back above your investment over the next few years.
Hi Hilda,
Ben is right...with all investments comes a risk. However, the good news is that if you don't have to sell anytime real soon, the likelihood of your equity making a rebound is almost assured. The only folks that are in a true fix are the speculators that bought at the top of the market, and were looking for a quick turnaround on their investment.
Hang in there, the market will come back around!
Kim
Ben is right...with all investments comes a risk. However, the good news is that if you don't have to sell anytime real soon, the likelihood of your equity making a rebound is almost assured. The only folks that are in a true fix are the speculators that bought at the top of the market, and were looking for a quick turnaround on their investment.
Hang in there, the market will come back around!
Kim
Ditto! You also have to remember that a lot of consumers got themselves into this mess by using the equity in their homes as a tool to buy the things they normally couldn't afford. Working for a bank myself I have seen so many people jump at the chance to borrow more money from their equity just because its available but that kind of defeats the idea of investing in a home. Just be patient and by all means don't let your home go into foreclosure! Loosing some of the value in your home is far more worth it than destroying your credit.
Thanks for all your insightful responses to my inquiry on the inflated morgage payment on a house that now has a market value that is one half or less than what I purchased it for. I am 64 years old and was hoping to be able to sell the house in 5 years or so and be able to pay down some personal credit cards. But now, I can't sell the house for who knows how long and continue paying on a house that could be much easier to pay with lower payments. But like you guys said, it was something that was done as an investment and this carries risks. I would love to know a way out of this somehow within one year.
Hi Hildaavello,
Why don't you look for a reverse mortgage? As you're 64 now, there are chances that you can qualify for one and that'll help you pay off credit card debts too. And you can retain your home. Know what reverse mortgages are all about .
Good luck
Why don't you look for a reverse mortgage? As you're 64 now, there are chances that you can qualify for one and that'll help you pay off credit card debts too. And you can retain your home. Know what reverse mortgages are all about .
Good luck
If you were planning on selling in five years from now I would say that the chances of your homes value increasing to what is was(if not more) are very much in your favor. I wouldn't be too concerned with the housing markets unless you absolutely had to sell in the next 1-2 years. :D