I have an attorney that I deal w/through work. She had bought a house in Escondido at peak for 420k. I remember when she bought it. Her dad was ill and she wanted to be close to work and him. She was excited about getting it. I said nothing. I just kept thinking in my head that the bubble was going for far too long.
Saw her the other day. She filled me in on her housing situation. Neighbor across the street sold their place in pristine, upgraded condition for 325k. Hers is not in nearly as good condition and even needs a new roof. She figures she’s upside down minimum 120k.
Here’s her deal. Her adjustable rate fell, so her payments are less. She has plenty of money to pay for it. She doesn’t want to. Her dad passed away and she wants to move to a better school district for her kid and she doesn’t see values going up in that area any time soon.
She’s not interested in any programs. She’s contemplating walking. Business decision.
All these programs just kick the can. I haven’t heard that any of these programs have been a great success. Sure, there’s a handful it’s helped. But for the most part, IMO, it’s done nothing more than extend and pretend.
From what I’m seeing and hearing, people aren’t interested in keeping a depreciating asset. Some people only bought w/the intent to flip and make more money so for them, there is no question they’re walking.
