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re: What's your opinion of people who are underwater on their mortgages?
Posted on 6/16/15 at 5:15 pm to AUjim
Posted on 6/16/15 at 5:15 pm to AUjim
quote:
I actually put down 15K cash last year. Which do you think I'm more likely to walk away from?
On the flip side, if you require a large down payment on homes, a lot of people in the market would have trouble buying and home prices may actually be impacted negatively with reduced demand.
1
Posted on 6/16/15 at 5:20 pm to PygmalionEffect
quote:
The housing crisis occurred during Bush's watch
With a democratic congress who were told of the issues during numerous public hearing and the dems continued to claim there was no issue. I can link videos if you'd like later but I'm on mobile now so I cannot at the moment.
Posted on 6/16/15 at 5:24 pm to gorillacoco
If you are making minimum payments, buying a home is basically like renting a home from a bank for the first 10 or so years of a 30 year mortgage, except that there are way more responsibilities. The equity you are building in the home is minimal that first decade. Your best hope is that the home appreciates, which is also not guaranteed. For every success story of a neighborhood going way up in value you hear about the ones who lose money either from housing crashes or from their neighborhood turning into a ghetto seemingly overnight.
Posted on 6/16/15 at 5:54 pm to PygmalionEffect
quote:
The housing crisis occurred during Bush's watch.
And based on Clinton's failed policies.
Posted on 6/16/15 at 6:16 pm to Monticello
quote:
If you are making minimum payments, buying a home is basically like renting a home from a bank for the first 10 or so years of a 30 year mortgage
Where can I rent that will give me almost 20% equity over 10 years? On a $165k loan, that's almost $30k. If that's your idea of basically the same as zero, then whoopee. You're still going to be paying someone else's mortgage by renting.
This post was edited on 6/16/15 at 6:17 pm
Posted on 6/16/15 at 6:18 pm to bbvdd
Carter's policies had to be a big factor, no?
Posted on 6/16/15 at 6:44 pm to lsunurse
quote:
Also have you read her other posts? Family lives on some family compound and all the kids are homeschooled by her.
Most people don't live a lifestyle like that
LOL, I am the resident nutcase here it seems, lol. But no, the grand-kids are all in public/private school except for one and she lives in another state so it does not involve me. There is a medical/disability situation that is the reason for that. The newest grand-baby will be home-schooled but her education begins from birth and if the public schools are adequate to educate her at when she is school age, then she can attend.
Right now they are not adequate. However I am a decreed, certified and experienced teacher and well qualified to teach and it is something that I love to do so why not give babygirl the benefit of this?
Ah, the family compound. That makes us sound like the Kennedys or Duggars or something. This is so unlike us. It is true that we live on family land that has been in the family for generations. Right now we have 4 generations living on the family property which involves lots of acreage. I cant see their houses from mine, we live a good distance apart.
But once upon a time, not so long ago, I was living and working in the New Orleans area and was a homeowner. It was a modest home, well under $100,000, in a nice neighborhood that my then-hubby grew up in. I insisted that our mortgage be no more than $400 a month. My ex still lives in that house and it will one day go to our son who is an only child.
Yes, in my current life, we inherited land but land must be worked, maintained and improved. A house with proper water (a well), electricity, sewage, fences, etc had to be established by us. We cannot afford a proper driveway because our driveway is now about a mile long of dirt road. "Free land is a lot of work and cost. Not really so "free" as one might think. We pour "sweat equity" and work into it as opposed to paying others to do it.
But it is the life we chose and love and so we keep at it, just as people everywhere do. It just the location and situation that is different, the struggles, work and financial concerns are much alike though.
Posted on 6/16/15 at 7:08 pm to goofball
quote:
On the flip side, if you require a large down payment on homes, a lot of people in the market would have trouble buying and home prices may actually be impacted negatively with reduced demand.
So that would imply a credit bubble exists, and that its artificially driving the market, no?
Posted on 6/16/15 at 7:12 pm to gorillacoco
quote:
neighborhood turning into a ghetto seemingly overnight.
This happened to our neighborhood. Market tanked so many people started renting and doing section 8 rentals.
I am seriously thinking about walking away from our mortgage. We don't live in it, havent for the past five years, and it's just sitting in Houston vacant. Tried selling and it's not selling. Did the rent thing and bad tenants cost me more money than it's worth. Only reason I do not want to walk away is due to morals. Honestly I'm getting to the point where financially it doesn't make sense to own it any more as my credit can take the hit and we do not plan to own a home anymore in the future.
This post was edited on 6/16/15 at 7:17 pm
Posted on 6/16/15 at 7:18 pm to gorillacoco
It doesn't really matter where you are after 5,10 0r 15 years equity wise. It only matters if you want to borrow more money, re-finance or sell it. Who gives a shite if you are under water after five years but you are not selling yet? after you pay it off in 15 or 30 years chances are you will have plenty of equity. We paid off our 15 year mortgage in 2010 and the value was a bit lower than when we financed but guess what? the value has rebounded nicely and We own that shite free and clear so I don't care if it's worth $1.00. All these tards that walked away from mortgages because they lost some imaginary money were complete idiots and probably didn't deserve to be home owners anyway.
Posted on 6/16/15 at 7:28 pm to gorillacoco
I bought my first starter home for $152k in 2001. The same floor plan but not as upgraded as mine sold for $184k in 06 in the same S/D. By 09, my homes market value was about $120k. I rent the home now. The market value today is about $168k. I was upside down for about 4 years but am now right side up again. Most everyone who bought a home in the previous decade were upside down at one point or another if they did not sell before the bubble burst. Many still are depending on their location.
Posted on 6/16/15 at 7:30 pm to gingerkittie
quote:
Yes, in my current life, we inherited land
It's easy to say buy cheap when you're given land
that's not really a secret. 
Posted on 6/16/15 at 7:49 pm to TigerPanzer
quote:
Meanwhile, a Fortune 500 company files for bankruptcy, gets years to restore its financial situation under court protection, pays creditors dimes on the dollar, and then what? The CEO emerges as a hero who ought to run for President.
If the CEO was hired after the company was already in bad trouble I see nothing wrong with this.
Same reason why the current mayor of Detroit is not responsible for that city's bankruptcy.
Posted on 6/16/15 at 7:54 pm to LNCHBOX
quote:
Where can I rent that will give me almost 20% equity over 10 years? On a $165k loan, that's almost $30k. If that's your idea of basically the same as zero, then whoopee. You're still going to be paying someone else's mortgage by renting.
You are not factoring in risk which is present in any real estate purchase, and is minimal when renting. Most of the underwater mortgage holders being discussed in this thread bought their homes using the same assumptions about the future value of their purchase.
Posted on 6/16/15 at 8:01 pm to EA6B
Risk has nothing to do with the comment I replied to.
Even if you factor in the home losing value, that only matters if you sell. If you work in a volatile industry or plan to move a lot renting makes sense. But your home losing value doesn't matter if you don't sell.
Even if you factor in the home losing value, that only matters if you sell. If you work in a volatile industry or plan to move a lot renting makes sense. But your home losing value doesn't matter if you don't sell.
This post was edited on 6/16/15 at 8:09 pm
Posted on 6/16/15 at 8:11 pm to VABuckeye
quote:
There was a poster on this board a couple of years ago who let his home go to short sale because there wasn't enough equity to get out without a loss. He purchased a new home for over $900k during the short sale and was bragging about it here.
BananaHammock
Guy's a douche
Posted on 6/16/15 at 8:14 pm to gorillacoco
Fwiw, one size fit all financial advice isn't gospel.
Posted on 6/16/15 at 8:23 pm to gorillacoco
The price of a home doesn't really matter until you sell it.
A mortgage is a legal contract. You are committed to the obligation. At least you should be.
People who bailed out of their underwater mortgages really screwed themselves and others who decided to stick it out.
A mortgage is a legal contract. You are committed to the obligation. At least you should be.
People who bailed out of their underwater mortgages really screwed themselves and others who decided to stick it out.
Posted on 6/16/15 at 9:11 pm to LNCHBOX
quote:
It's easy to say buy cheap when you're given land that's not really a secret.
Ah, but it is land in a place where few people live and jobs are few since there are no large businesses here. Not one single place delivers pizza or food here.
After 9pm, you have to drive about 25 miles to find an open store for gas, fast food etc and even that is a small town and little is open after 10 there, just walmart and a few gas stations.
The internet option in satellite and is not cheap or unlimited. We don't have cable and can't stream movies online. We pick up a few channels with a old style antennae but weather interferes with that easily. Want to go to the movies? Be prepared to drive about an hour and a half.
The other siblings have chosen not to live on the free land. None of the other grandchildren have chosen the free land either. They have bought elsewhere and live elsewhere. perhaps we are the last of a dying breed. But now my husband's son has built here and now has a child living here on the family land so perhaps there is hope.
LOL, seriously, ya'll. Everyone on here spends time trying to convince everyone that they are true, big time O/T ballers, living large and here I am trying to prove just the opposite.
But I love where I live and I am happy to have the option to live this life. I have lived life in the fast lane, in the city, in the traffic, with the crazy neighbors and all that. I had enough and I am content to live here. But we have to live with a lot less options and comforts to do so.
OK, so seriously with all I have described as my life, knowing you would have to live in a small cottage with no closets, would you, could you live my life? Would you want to?
Posted on 6/16/15 at 9:23 pm to gingerkittie
I could, but I chose not to. I'm not claiming to be any kind of baller. I was just merely pointing out that your suggestions don't really work for most here, and being given land is an advantage most people don't get.
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