Posted on: 09th May, 2009 06:04 am
We have a 1st and a HELOC which combined are more than the home is worth. We're current on all payments, but are afraid that when inflation hits our heloc payment will go up and be too much. We've tried to refiance everything into a new 1st, but because the appraised value is too low we can not do that. Is it better to just cut our losses and walk away....maybe a deed in lieu of foreclosre? Do we need to quit making our payments to try force the lender into a modification. We're stumped.
i presume, guest, that you have given up all hope that:
1) the value of the home will ever increase again;
2) that you'll eventually pay off the mortgage and that will eliminate the "under water" scenario;
3) that you'll be far better off to ruin your credit and move on to live in a cramped little apartment (or Mom's basement);
4) that the next house you purchase will cause you heartache also.
i think walking away is short-sighted. forgive my seeming sarcasm, but it's for effect. i'm hopeful it gives you something else to think about.
1) the value of the home will ever increase again;
2) that you'll eventually pay off the mortgage and that will eliminate the "under water" scenario;
3) that you'll be far better off to ruin your credit and move on to live in a cramped little apartment (or Mom's basement);
4) that the next house you purchase will cause you heartache also.
i think walking away is short-sighted. forgive my seeming sarcasm, but it's for effect. i'm hopeful it gives you something else to think about.
Hi, Guest,
Welcome to the forum.
first and foremost question.Is this your first home or your second home?
If it is your first home then do not go for foreclosure. But if it is your second home then
1.How much do you owe to the lender?
2.Do you think that you are financially capable to pay the monthly installments?
Considering all the above question then you should keep the property or just get rid off .....final decision depends on you.
Keep me informed.
:arrow: :arrow: :arrow:
Welcome to the forum.
first and foremost question.Is this your first home or your second home?
If it is your first home then do not go for foreclosure. But if it is your second home then
1.How much do you owe to the lender?
2.Do you think that you are financially capable to pay the monthly installments?
Considering all the above question then you should keep the property or just get rid off .....final decision depends on you.
Keep me informed.
:arrow: :arrow: :arrow:
you're so dramatic, gunzi
hi
walking away should be your last option because it will damage your credit and spoil your chances of getting a new loan in future. why don't you talk with the loss mitigation dept. and check the possibility of a loan modification? it'd be a much better option for you.
walking away should be your last option because it will damage your credit and spoil your chances of getting a new loan in future. why don't you talk with the loss mitigation dept. and check the possibility of a loan modification? it'd be a much better option for you.
it is amazing how many people want to run away from the place they call "home" simply because their value is less than the loan amount.... AT THE MOMENT.
Respected sir,
gmakerley.
"you're so dramatic, gunzi"
You are so funny. Can i know that, Why you called me dramatic ?
Waiting for your reply..........( :lol: :lol: :lol: )
gmakerley.
"you're so dramatic, gunzi"
You are so funny. Can i know that, Why you called me dramatic ?
Waiting for your reply..........( :lol: :lol: :lol: )
gunzi, your use of several different fonts, varying colors, emoticons, etc. lead me there. no disrespect meant, mind you...it's just not your run-of-the-mill postings that we see when you drop a post on us.
Hi
Gunzi, what makes you think George is 'funny'? George is a member of this community for a long time and a very experienced person. When he says something, he always has a strong reason to support it. He doesn't say anything that sounds 'funny' or useless, at least I haven't seen any in this forum. The way you dramatize your posts with over usage of a variety of colors and smileys and so on, is really out of the ordinary and I'm not sure if those stuffs that you use to decorate your posts do anyone any good. It'll probably be in the best interest of all of us in this forum if you stop this unneccessay dramatization and start offering useful suggestions to people. We'll be more than happy with your suggestions and posts sans all these colorful, dramatic acrobatics. :)
Gunzi, what makes you think George is 'funny'? George is a member of this community for a long time and a very experienced person. When he says something, he always has a strong reason to support it. He doesn't say anything that sounds 'funny' or useless, at least I haven't seen any in this forum. The way you dramatize your posts with over usage of a variety of colors and smileys and so on, is really out of the ordinary and I'm not sure if those stuffs that you use to decorate your posts do anyone any good. It'll probably be in the best interest of all of us in this forum if you stop this unneccessay dramatization and start offering useful suggestions to people. We'll be more than happy with your suggestions and posts sans all these colorful, dramatic acrobatics. :)
savior, please don't think that i took any offense to gunzi's remarks. honestly, there's always room for a little flair on this forum, and in life in general. i try to inject a little humor when it's appropriate - my sense of humor isn't for everyone, and that i know, but i think we all have this feeling of "hey, it's funny to me!" so why not?
you're not wrong in your statements about the lack of necessity for the dramatics, but at the same time, i don't think they're particularly harmful. i suppose if we had a consensus one way or the other that'd tell us how everyone views this.
you're not wrong in your statements about the lack of necessity for the dramatics, but at the same time, i don't think they're particularly harmful. i suppose if we had a consensus one way or the other that'd tell us how everyone views this.
I disagree about walking away being short sited. In many cases it is actually looking at the longer term when you realize how beneficial walking away can be. I am currently walking away from my home which was purchased for $372,000 with no money down in CA. The house is now worth my best guess of $160,000 less than 2 years after my purchase. I could continue dumping 70% of my monthly pay into an asset that is still losing value or I can walk away. I've already went 6 months without making a payment and the bank has not even filed an NOD yet.
I am guessing when all is said and done I will have lived rent free for an entire year saving around $35,000 that would have went towards home payments. My credit score has already went from 800 to 600 and I expect to be in the mid 500s or lower by the time this is over. It is particularly bad for me because I had a first and a second and both loans are considered separate defaults. That being said if I wait 7 years to buy another home I will easily be able to put down $70,000 and I expect to pay somewhere around $200,000 for a similar home. Don't fool yourself into thinking the market will see much if any appreciation this decade. So how am I being short sighted here? I will rent a place the same size for half the price. I'll probably have to put a large deposit down, but with $35k in the bank I'll be able to afford to...
I am guessing when all is said and done I will have lived rent free for an entire year saving around $35,000 that would have went towards home payments. My credit score has already went from 800 to 600 and I expect to be in the mid 500s or lower by the time this is over. It is particularly bad for me because I had a first and a second and both loans are considered separate defaults. That being said if I wait 7 years to buy another home I will easily be able to put down $70,000 and I expect to pay somewhere around $200,000 for a similar home. Don't fool yourself into thinking the market will see much if any appreciation this decade. So how am I being short sighted here? I will rent a place the same size for half the price. I'll probably have to put a large deposit down, but with $35k in the bank I'll be able to afford to...
dg, your case is far more drastic than some of the others i have seen and commented on. you've lost a couple of hundred thousand dollars of value, and it's pretty clear that it would take most of your lifetime (and mine, too - combined) to make up that loss and turn the situation around. what i think is short-sighted is some of the commentaries i have seen that talk about several thousands of dollars but not so large as to be unrecoverable.
i didn't mean to paint every case with a broad brush - obviously each marketplace has its own strengths and weaknesses and i will definitely agree that values bouncing back will take a good while.
i didn't mean to paint every case with a broad brush - obviously each marketplace has its own strengths and weaknesses and i will definitely agree that values bouncing back will take a good while.
I bought my duplex 3.5 years ago for $260k, my next door sold for $75k last month.
Even sacrificing a little bit of equity I would still save at least $150k, if I don't pay mortgage. Does anybody think my property values triples in next five years after bank inflated and deflated for their own interest?
Yes, it is less than 1/3. I was never ever late on my mortgage, have good credit. Why would I pay my mortgage when bank is not even setting minimum price to protect legit homeowners? Appraiser would do anything back then to get comp as high as possible to raise base price. Consumers, I used to originate mortgage, I've never sold option ARMS because I knew this is coming.
Consumers should fight back to Banks by ditching mortgage payment. Banks don't need property which cost them to maintain.
C'mon, use common sense. It does not matter, if you know you are dumping money on the river, what is wrong with stop doing it? Bank will get money from somewhere else when they file bankruptcy, but for consumer's only option is bankruptcy if you keep paying mortgage.
If not, we may be able to save some cash and rebuild our lives. Who cares about credit? Credit is sooooo overated. My credit was almost 800 three years ago, I had more than $500k lines on my credit card but BANKS closed most of them without any notice because I don't use them. They want to lend money to people with high interest rate to make profit!!!, since most of my cards are around 1.00% to 5.99%.
Yeah, everytime they close my card, it hurts my credit by around 20 points. What did I do???? I didn't even ask for all those credit lines. They kept sending me letters saying congratulations, my credit line was increased. Again, I did not do anything, banks did!!! Then consumer like myself suffer.
Bank inflated the market and deflating without any regulations. In Las Vegas, foreclosed auction starts like $500. Bank DONT CARE!! if the price goes down. This is worse than putting money on slot machine.
As a consumer what can we do to protest. No one should pay mortgage, bank should suffer and do things right. This recession is all banks fault, not consumer. They tried to brainwash as if consumers are dumb. That is not the case, they brainwash consumers so we still keep paying inflated mortgage balance. Wake up, people!!!
Even sacrificing a little bit of equity I would still save at least $150k, if I don't pay mortgage. Does anybody think my property values triples in next five years after bank inflated and deflated for their own interest?
Yes, it is less than 1/3. I was never ever late on my mortgage, have good credit. Why would I pay my mortgage when bank is not even setting minimum price to protect legit homeowners? Appraiser would do anything back then to get comp as high as possible to raise base price. Consumers, I used to originate mortgage, I've never sold option ARMS because I knew this is coming.
Consumers should fight back to Banks by ditching mortgage payment. Banks don't need property which cost them to maintain.
C'mon, use common sense. It does not matter, if you know you are dumping money on the river, what is wrong with stop doing it? Bank will get money from somewhere else when they file bankruptcy, but for consumer's only option is bankruptcy if you keep paying mortgage.
If not, we may be able to save some cash and rebuild our lives. Who cares about credit? Credit is sooooo overated. My credit was almost 800 three years ago, I had more than $500k lines on my credit card but BANKS closed most of them without any notice because I don't use them. They want to lend money to people with high interest rate to make profit!!!, since most of my cards are around 1.00% to 5.99%.
Yeah, everytime they close my card, it hurts my credit by around 20 points. What did I do???? I didn't even ask for all those credit lines. They kept sending me letters saying congratulations, my credit line was increased. Again, I did not do anything, banks did!!! Then consumer like myself suffer.
Bank inflated the market and deflating without any regulations. In Las Vegas, foreclosed auction starts like $500. Bank DONT CARE!! if the price goes down. This is worse than putting money on slot machine.
As a consumer what can we do to protest. No one should pay mortgage, bank should suffer and do things right. This recession is all banks fault, not consumer. They tried to brainwash as if consumers are dumb. That is not the case, they brainwash consumers so we still keep paying inflated mortgage balance. Wake up, people!!!
so your point, vegas, is apparently that the consumers in this country have all been fooled by the banks into thinking that it's necessary to take the credit cards and the limits offered and spend, spend, spend. there is no responsibility on the part of the consumer to actually pay for goods and services purchased with credit cards?
banks do not set prices on homes. if you supposedly worked as a loan originator, you truly ought to know that.
one would surmise from reading your post that you had your eyes closed when you purchased this property of yours, and that they remained closed as you obtained your mortgage. i don't necessarily buy it. i will give you the point about losing equity in the property - it's a shame that it happened to you. but your diatribe truly doesn't make a whole ton of sense, frankly.
banks do not set prices on homes. if you supposedly worked as a loan originator, you truly ought to know that.
one would surmise from reading your post that you had your eyes closed when you purchased this property of yours, and that they remained closed as you obtained your mortgage. i don't necessarily buy it. i will give you the point about losing equity in the property - it's a shame that it happened to you. but your diatribe truly doesn't make a whole ton of sense, frankly.
Vegas
Lot of peopel are in the same situation and for sure house value will not go back to the 2006-07 levels in the enxt 5 years. Probably one they are fidn the bottom they are goign to stat ther for a while and probaby start goign up after 5 years. But to reach the same level it will be atelast 10 years.
Every one is payign for few peopels mistake.
hange on there.
Realgeni
-Good credit is easy to achieve, as long as you use it responsibly.
Lot of peopel are in the same situation and for sure house value will not go back to the 2006-07 levels in the enxt 5 years. Probably one they are fidn the bottom they are goign to stat ther for a while and probaby start goign up after 5 years. But to reach the same level it will be atelast 10 years.
Every one is payign for few peopels mistake.
hange on there.
Realgeni
-Good credit is easy to achieve, as long as you use it responsibly.
The credit part is a lot worse than I thought it would be. I had an 800 FICO before this thing started and its already below 600. I've had my 2 most active credit cards already cancel my accounts. In 15 years of credit I've never made 1 late cc payment. I still do think the $280,000 swing is worth it($250,000 in value lost plus 1 year rent free at $3000 a month). I've already saved $18,000 in mortgage payments and they haven't even filed a notice of default. I truly don't expect the prices in this market to be worth 2006 values even 15 years from now. Maybe if inflation is as bad as people are expecting. I really do wish their was a better way out of this and obviously I was a complete moron for paying the price I did, but I refuse to let that mistake make me a mortgage slave for the rest of my life.