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Poll

Do you owe more than what your home is worth?

Yes15%15% - 3
Its a push0%0% - 0
No85%85% - 17
Total: 20
2009-05-06 19:43:18
Harmor
Error_Name_Not_Found
+605|6906|San Diego, CA, USA
'Upside Down' Home Sellers Owe More Than They Get

Washington Post wrote:

By Nancy Trejos
Washington Post Staff Writer
Friday, April 20, 2007; Page A01

Jeffrey Taylor and his wife bought their dream home in Purcellville for $538,000 last August. Now they have to sell it because they are getting divorced and neither one can afford the mortgage alone.

The most they could get for it was $430,000. After paying all the real estate commissions and taxes, they will still owe the bank $118,000.
   
A nontraditional mortgage and a prepayment penalty mean Kimberly Pexton and her husband will owe $28,000 at closing.

"Five months later, I lose $100,000," Taylor, a high school teacher, said. "I don't think I can take $100,000 into the stock market and lose it faster."

Such a scenario, known as a short sale, was unthinkable during the real estate boom of recent years. In the course of five months, a person could buy and sell a property and walk away with tens of thousands of dollars. Now, instead of receiving large checks at the settlement table, many sellers are writing them.
Comment: With the falling prices of homes seems like these are the people who should helped, not the people already 6 months behind on their mortgage.
2009-05-06 19:55:04
mtb0minime
minimember
+2,418|7012

That's just part of the game. Sometimes you buy a home and its value greatly increases, and sometimes you buy a home and its value decreases. Too bad, so sad. Maybe they should force themselves to stay together to be able to handle the mortgage since they can't afford it alone? It sucks, but does losing all this money suck more?
2009-05-06 21:23:32
VspyVspy
Sniper
+183|7031|A sunburnt country
The general rule in real estate (In Australia) is that your property should double in value every 7 years.  In my time, I've owned 3 houses and this statement has proven true on each occasion.

Like anything to do with finance, it is a cycle that will have it's ups and downs.   Now is the time to buy a house and you can pick up some really good deals.  Hold onto it for a year or two and I bet you'd make money.

The only reason these guys are going to lose money is because they are getting divorced.
2009-05-07 17:21:27
ghettoperson
Member
+1,943|7007

I take it 'upside down' is just a euphemism for negative equity?

EDIT: If you'd explained that then I imagine your other thread would have been more successful.

Last edited by ghettoperson (2009-05-07 17:22:37)

2009-05-07 22:25:29
Kmar
Truth is my Bitch
+5,695|6959|132 and Bush

VspyVspy wrote:

The general rule in real estate (In Australia) is that your property should double in value every 7 years.  In my time, I've owned 3 houses and this statement has proven true on each occasion.

Like anything to do with finance, it is a cycle that will have it's ups and downs.   Now is the time to buy a house and you can pick up some really good deals.  Hold onto it for a year or two and I bet you'd make money.

The only reason these guys are going to lose money is because they are getting divorced.
There isn't many things you can buy that does that. Most things depreciate with time. Kinda funny that we've got hooked on expecting to make money off of our properties. Anyone who bought more than 7 years ago probably still isn't upside down.
Xbone Stormsurgezz

 

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