Comments on: Nearly One-Third of All Homeowners Who Purchased in Past 5-yrs Underwater…Best Case http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/ Your personal tour guide through the housing finance "misinformation maze". Thu, 14 May 2009 13:28:04 -0400 http://wordpress.org/?v=2.8.1 hourly 1 By: Marc Authier http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4497 Marc Authier Fri, 15 Aug 2008 01:28:57 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4497 Wow wee ? Wow wee ?

]]> By: mag http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4494 mag Thu, 14 Aug 2008 22:13:04 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4494 I live in the Central Coast of California. bought in 2004 with 15% down full doc 3/1 arm loan starting at 3.00%. My loan just adjusted in June to 4.25% My 1st is a great loan, it is my HELOC that is making me want to walk, i owe 77k on a HELOC with citibank. Lost my job a few years ago and it took 9 months to find a new job making 1/3 of what i used to make, needless to say i'm now filing for BK and wanted to keep my home but my attorney said if I BK now and keep the home and down the road have to let it go into foreclosure the HELOC can come after me for their loss and that I should just give up my home now and put it all in the BK. I purchased my home for 355k in 2004, i currently owe total 354k and houses in my tract are listed for 194k (one home has been listed for a year, they just keep lowering the sales price but it still hasn't sold). I guess being prices have dropped so much where i live i would be stupid to try to hang on to my home when i can get rid of it thru the BK and start over. I live in the Central Coast of California. bought in 2004 with 15% down full doc 3/1 arm loan starting at 3.00%. My loan just adjusted in June to 4.25% My 1st is a great loan, it is my HELOC that is making me want to walk, i owe 77k on a HELOC with citibank. Lost my job a few years ago and it took 9 months to find a new job making 1/3 of what i used to make, needless to say i’m now filing for BK and wanted to keep my home but my attorney said if I BK now and keep the home and down the road have to let it go into foreclosure the HELOC can come after me for their loss and that I should just give up my home now and put it all in the BK. I purchased my home for 355k in 2004, i currently owe total 354k and houses in my tract are listed for 194k (one home has been listed for a year, they just keep lowering the sales price but it still hasn’t sold). I guess being prices have dropped so much where i live i would be stupid to try to hang on to my home when i can get rid of it thru the BK and start over.

]]> By: Brett http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4474 Brett Thu, 14 Aug 2008 11:41:17 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4474 I purchased my home in Orlando for $340,000 Sept 1, 2006 It is now valued at $270,000 I have a 80% first at 5.9 that is adjusting to 9.9% Sept 1 (Payment goes from $1500 to $2300) and I have a Second at 10% ($606.00 monthly). I have tried to refi but there is no hope in hell. So the final option is to tell my lender (who happens to hold both the 1st and 2nd -- good for me) that they either freeze the rates forever or I am walking. I would like to note my household income is around $200K. This is a decision made not out of requirement but more of business. The property will most likely be worth $250K or less soon. I refuse to take both a bath on the price AND get screwed by the lender. I purchased my home in Orlando for $340,000 Sept 1, 2006

It is now valued at $270,000

I have a 80% first at 5.9 that is adjusting to 9.9% Sept 1 (Payment goes from $1500 to $2300) and I have a Second at 10% ($606.00 monthly).

I have tried to refi but there is no hope in hell. So the final option is to tell my lender (who happens to hold both the 1st and 2nd — good for me) that they either freeze the rates forever or I am walking.

I would like to note my household income is around $200K. This is a decision made not out of requirement but more of business. The property will most likely be worth $250K or less soon. I refuse to take both a bath on the price AND get screwed by the lender.

]]> By: Stu http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4434 Stu Tue, 12 Aug 2008 21:22:47 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4434 Brant, the heloc is the second note so all they can do is place a lien on the first note. NO you cannot be foreclosed on for not paying your heloc. However your bigger point is this: IF you live in S. CA right now and bought in the last couple of years then unless you put 20%-30% down now would be a good time to walk... Only a fool chases his tail until he is exahausted and broke... Brant, the heloc is the second note so all they can do is place a lien on the first note. NO you cannot be foreclosed on for not paying your heloc.

However your bigger point is this: IF you live in S. CA right now and bought in the last couple of years then unless you put 20%-30% down now would be a good time to walk…

Only a fool chases his tail until he is exahausted and broke…

]]> By: Don Copeland http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4423 Don Copeland Tue, 12 Aug 2008 18:29:10 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4423 Mo...The "South Florida" comment may be close....I don't think it is at 75% though. Although I do the majority of my loans in central Florida and in the panhandle (Where things are not really abd at all (Panhandle)), I do many loans in South Florida and where I do see the bad side....I see a lot of things that show it isn't as bad as the mainstream media portrays it to be. Just my 2 cents! Mo…The “South Florida” comment may be close….I don’t think it is at 75% though. Although I do the majority of my loans in central Florida and in the panhandle (Where things are not really abd at all (Panhandle)), I do many loans in South Florida and where I do see the bad side….I see a lot of things that show it isn’t as bad as the mainstream media portrays it to be. Just my 2 cents!

]]> By: Brant Gaede http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4421 Brant Gaede Tue, 12 Aug 2008 18:00:11 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4421 Mr. Mortgage: If I own a home in California and am maxed out with sub-prime and Heloc and I stop paying the Heloc but keep paying the sub-prime, am I likely to be forced into foreclosure? Obviously the HELOCs are disaster city for the debt issuers. The question is how many more homes hit the market re foreclosures. If you are going to ruin your credit anyway, it seems the rational thing to do is walk and rent immediately. Mr. Mortgage:

If I own a home in California and am maxed out with sub-prime and Heloc and I stop paying the Heloc but keep paying the sub-prime, am I likely to be forced into foreclosure? Obviously the HELOCs are disaster city for the debt issuers. The question is how many more homes hit the market re foreclosures. If you are going to ruin your credit anyway, it seems the rational thing to do is walk and rent immediately.

]]> By: Chris http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4415 Chris Tue, 12 Aug 2008 15:54:50 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4415 Come to Cleveland and one can see first hand for him or herself on what is going on. Basically we have worthless properties that were selling for 100K five years ago. Squatters are moving into the homes, living in them, and then burning them down. It's a real problem here and it's going to happen in other cities. Come to Cleveland and one can see first hand for him or herself on what is going on. Basically we have worthless properties that were selling for 100K five years ago. Squatters are moving into the homes, living in them, and then burning them down. It’s a real problem here and it’s going to happen in other cities.

]]> By: Mo http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4413 Mo Tue, 12 Aug 2008 15:03:34 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4413 South Florida is a madhouse. I suspect 75% of buyers are underwater and ready to default. I detail this in my blog. Florida is already in a Depression. California is headed that way. Crime will be on the increase (studies show that property crime and as a result violence increases during downturns). For a taste, check out 1250 S Miami Ave in Miami, Fl on zillow.com to see the level of confusion in the market. Look at purchase history (most in the 500k region in 2005), and then look at current listings for identical units. Some for 189K some for 325K, for identical units. A RE Agent commented that people hold out and end up chasing the market. The current best offers on these units is 90K. South Florida is a madhouse. I suspect 75% of buyers are underwater and ready to default. I detail this in my blog. Florida is already in a Depression. California is headed that way. Crime will be on the increase (studies show that property crime and as a result violence increases during downturns).

For a taste, check out 1250 S Miami Ave in Miami, Fl on zillow.com to see the level of confusion in the market. Look at purchase history (most in the 500k region in 2005), and then look at current listings for identical units. Some for 189K some for 325K, for identical units. A RE Agent commented that people hold out and end up chasing the market. The current best offers on these units is 90K.

]]> By: Stu http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4412 Stu Tue, 12 Aug 2008 14:58:30 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4412 Mr. M. you are in good company. Mark Zandi had the following to say in an article back in June: "For most, their home is their key asset. If they have no equity in their home, likely their net worth is negative too. Their entire balance sheet will be underwater." He felt at the time that by June 09 he estimated that roughly 1 out of every 4 home owners (12.2 M) would have negative equity or no equity at all in their homes. This is pretty serious stuff here and the fact that the MSM lets it all blow by with nary a word is quite scary. This is news worthy and in fact I feel should be front page story worthy. What impact do you think this will have on people just walking away from their homes? It is quite scary to consider what the national real estate markets will look like 3 years from now. How many homeless people will exist, how many squatters for that matter? Will we have huge areas of homes simply overrun with people who are just living here and there with no accountability or responsibility for the homes they are squatting in? With all of these dismal numbers that are out and the bleak and dire outlook you and others propose, how long will it take to fix itself? I was originally thinking 2012-2015 but that even seems somewhat optimistic when you consider the wave of bad news that keeps pouring in. That and the length of time this is all taking due to intervention by outside parties, leaves me truly wondering if this downturn won’t last decades rather than simply years. Mr. M. you are in good company. Mark Zandi had the following to say in an article back in June:

“For most, their home is their key asset. If they have no equity in their home, likely their net worth is negative too. Their entire balance sheet will be underwater.”

He felt at the time that by June 09 he estimated that roughly 1 out of every 4 home owners (12.2 M) would have negative equity or no equity at all in their homes.

This is pretty serious stuff here and the fact that the MSM lets it all blow by with nary a word is quite scary. This is news worthy and in fact I feel should be front page story worthy. What impact do you think this will have on people just walking away from their homes? It is quite scary to consider what the national real estate markets will look like 3 years from now. How many homeless people will exist, how many squatters for that matter? Will we have huge areas of homes simply overrun with people who are just living here and there with no accountability or responsibility for the homes they are squatting in?

With all of these dismal numbers that are out and the bleak and dire outlook you and others propose, how long will it take to fix itself? I was originally thinking 2012-2015 but that even seems somewhat optimistic when you consider the wave of bad news that keeps pouring in. That and the length of time this is all taking due to intervention by outside parties, leaves me truly wondering if this downturn won’t last decades rather than simply years.

]]> By: Mortgageman85 http://mrmortgage.ml-implode.com/2008/08/12/one-third-of-us-homeoners-underwaterbest-case/comment-page-1/#comment-4410 Mortgageman85 Tue, 12 Aug 2008 14:18:42 +0000 http://mrmortgage.ml-implode.com/?p=245#comment-4410 Do you have any numbers if you subtracted CA out of the statistics. I would venture to say that virtually all purchases made in CA over the past 3 years are underwater. Given the very large numbers that CA produces, My guess would be that the rest of the Country's numbers are less than 10%. Did you see the article regarding the highest percentage of equity cities? I was quite surprised to see some that were on the list. Might have been on Yahoo, I dont remember. Do you have any numbers if you subtracted CA out of the statistics. I would venture to say that virtually all purchases made in CA over the past 3 years are underwater. Given the very large numbers that CA produces, My guess would be that the rest of the Country’s numbers are less than 10%.

Did you see the article regarding the highest percentage of equity cities? I was quite surprised to see some that were on the list. Might have been on Yahoo, I dont remember.

]]>