- This topic has 75 replies, 10 voices, and was last updated 16 years, 2 months ago by
patientlywaiting.
-
AuthorPosts
-
February 16, 2008 at 12:18 PM #154618February 16, 2008 at 2:52 PM #154259
patientlywaiting
ParticipantIndustry veterans are making the business decision to walk.
You’d have to be nuts to keep on making payments for nothing in return.
Choices, choices…
1) If you walk, you can save a guaranteed amount of $12,000/year plus compound interest.
2) If you hang on, the future future appreciation of condo needs to return all of that you and more (for the added risk). In the mean time, you’ll be negative $1000/month until whenever…..
3) You keep on losing $1000/mo and your balloon payment comes due in Nov 2009. Now what? You can’t refinance because the value is not there so the bank forecloses on you anyway. Who was the sucker?
Do the calculations and decide for yourself.
http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html
“A lot of people are starting to look at it like a business decision,” he said. Most distressed homeowners are “your normal, hard-working families. They got caught up in the frenzy of the market and kept expecting it to appreciate.”
One of those people is Dave Pierce, a veteran real estate agent who recently went into default on a five-bedroom, 3,864-square-foot Torrey Highlands home, which he bought for about $1 million 3½ years ago.
Despite his 30 years in the real estate business, Pierce says he misjudged the market, getting in over his head with financing much like thousands of other San Diegans. He can’t refinance his loan because his home is now worth far less than he paid for it.
February 16, 2008 at 2:52 PM #154537ParticipantIndustry veterans are making the business decision to walk.
You’d have to be nuts to keep on making payments for nothing in return.
Choices, choices…
1) If you walk, you can save a guaranteed amount of $12,000/year plus compound interest.
2) If you hang on, the future future appreciation of condo needs to return all of that you and more (for the added risk). In the mean time, you’ll be negative $1000/month until whenever…..
3) You keep on losing $1000/mo and your balloon payment comes due in Nov 2009. Now what? You can’t refinance because the value is not there so the bank forecloses on you anyway. Who was the sucker?
Do the calculations and decide for yourself.
http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html
“A lot of people are starting to look at it like a business decision,” he said. Most distressed homeowners are “your normal, hard-working families. They got caught up in the frenzy of the market and kept expecting it to appreciate.”
One of those people is Dave Pierce, a veteran real estate agent who recently went into default on a five-bedroom, 3,864-square-foot Torrey Highlands home, which he bought for about $1 million 3½ years ago.
Despite his 30 years in the real estate business, Pierce says he misjudged the market, getting in over his head with financing much like thousands of other San Diegans. He can’t refinance his loan because his home is now worth far less than he paid for it.
February 16, 2008 at 2:52 PM #154549ParticipantIndustry veterans are making the business decision to walk.
You’d have to be nuts to keep on making payments for nothing in return.
Choices, choices…
1) If you walk, you can save a guaranteed amount of $12,000/year plus compound interest.
2) If you hang on, the future future appreciation of condo needs to return all of that you and more (for the added risk). In the mean time, you’ll be negative $1000/month until whenever…..
3) You keep on losing $1000/mo and your balloon payment comes due in Nov 2009. Now what? You can’t refinance because the value is not there so the bank forecloses on you anyway. Who was the sucker?
Do the calculations and decide for yourself.
http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html
“A lot of people are starting to look at it like a business decision,” he said. Most distressed homeowners are “your normal, hard-working families. They got caught up in the frenzy of the market and kept expecting it to appreciate.”
One of those people is Dave Pierce, a veteran real estate agent who recently went into default on a five-bedroom, 3,864-square-foot Torrey Highlands home, which he bought for about $1 million 3½ years ago.
Despite his 30 years in the real estate business, Pierce says he misjudged the market, getting in over his head with financing much like thousands of other San Diegans. He can’t refinance his loan because his home is now worth far less than he paid for it.
February 16, 2008 at 2:52 PM #154560ParticipantIndustry veterans are making the business decision to walk.
You’d have to be nuts to keep on making payments for nothing in return.
Choices, choices…
1) If you walk, you can save a guaranteed amount of $12,000/year plus compound interest.
2) If you hang on, the future future appreciation of condo needs to return all of that you and more (for the added risk). In the mean time, you’ll be negative $1000/month until whenever…..
3) You keep on losing $1000/mo and your balloon payment comes due in Nov 2009. Now what? You can’t refinance because the value is not there so the bank forecloses on you anyway. Who was the sucker?
Do the calculations and decide for yourself.
http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html
“A lot of people are starting to look at it like a business decision,” he said. Most distressed homeowners are “your normal, hard-working families. They got caught up in the frenzy of the market and kept expecting it to appreciate.”
One of those people is Dave Pierce, a veteran real estate agent who recently went into default on a five-bedroom, 3,864-square-foot Torrey Highlands home, which he bought for about $1 million 3½ years ago.
Despite his 30 years in the real estate business, Pierce says he misjudged the market, getting in over his head with financing much like thousands of other San Diegans. He can’t refinance his loan because his home is now worth far less than he paid for it.
February 16, 2008 at 2:52 PM #154638ParticipantIndustry veterans are making the business decision to walk.
You’d have to be nuts to keep on making payments for nothing in return.
Choices, choices…
1) If you walk, you can save a guaranteed amount of $12,000/year plus compound interest.
2) If you hang on, the future future appreciation of condo needs to return all of that you and more (for the added risk). In the mean time, you’ll be negative $1000/month until whenever…..
3) You keep on losing $1000/mo and your balloon payment comes due in Nov 2009. Now what? You can’t refinance because the value is not there so the bank forecloses on you anyway. Who was the sucker?
Do the calculations and decide for yourself.
http://www.signonsandiego.com/news/metro/20080216-9999-1n16default.html
“A lot of people are starting to look at it like a business decision,” he said. Most distressed homeowners are “your normal, hard-working families. They got caught up in the frenzy of the market and kept expecting it to appreciate.”
One of those people is Dave Pierce, a veteran real estate agent who recently went into default on a five-bedroom, 3,864-square-foot Torrey Highlands home, which he bought for about $1 million 3½ years ago.
Despite his 30 years in the real estate business, Pierce says he misjudged the market, getting in over his head with financing much like thousands of other San Diegans. He can’t refinance his loan because his home is now worth far less than he paid for it.
February 16, 2008 at 7:56 PM #154351HLS
ParticipantYou can make Countrywide your long term partner.
Consider continuing to pay on your 1st, but not on the 2nd.It is doubtful that that CW will foreclose on the 2nd as they will get nothing today. It will remain as a lien on your property, and it will affect your credit scores, but it will also cut your losses every month.
It will allow you hang on a bit longer while you decide what to do. If it ever goes back up, you will have to deal with them or whoever owns the loan at that time.
If the HELOC was maxed out for the sole purpose of acquiring/purchasing the property, it “should” also be non-recourse debt, as well as the first.
Consult a CPA for your sitaution.
Considering that $1000 a month could be going into your retirement account, you are throwing away a huge amount of future net worth.February 16, 2008 at 7:56 PM #154627ParticipantYou can make Countrywide your long term partner.
Consider continuing to pay on your 1st, but not on the 2nd.It is doubtful that that CW will foreclose on the 2nd as they will get nothing today. It will remain as a lien on your property, and it will affect your credit scores, but it will also cut your losses every month.
It will allow you hang on a bit longer while you decide what to do. If it ever goes back up, you will have to deal with them or whoever owns the loan at that time.
If the HELOC was maxed out for the sole purpose of acquiring/purchasing the property, it “should” also be non-recourse debt, as well as the first.
Consult a CPA for your sitaution.
Considering that $1000 a month could be going into your retirement account, you are throwing away a huge amount of future net worth.February 16, 2008 at 7:56 PM #154639ParticipantYou can make Countrywide your long term partner.
Consider continuing to pay on your 1st, but not on the 2nd.It is doubtful that that CW will foreclose on the 2nd as they will get nothing today. It will remain as a lien on your property, and it will affect your credit scores, but it will also cut your losses every month.
It will allow you hang on a bit longer while you decide what to do. If it ever goes back up, you will have to deal with them or whoever owns the loan at that time.
If the HELOC was maxed out for the sole purpose of acquiring/purchasing the property, it “should” also be non-recourse debt, as well as the first.
Consult a CPA for your sitaution.
Considering that $1000 a month could be going into your retirement account, you are throwing away a huge amount of future net worth.February 16, 2008 at 7:56 PM #154650ParticipantYou can make Countrywide your long term partner.
Consider continuing to pay on your 1st, but not on the 2nd.It is doubtful that that CW will foreclose on the 2nd as they will get nothing today. It will remain as a lien on your property, and it will affect your credit scores, but it will also cut your losses every month.
It will allow you hang on a bit longer while you decide what to do. If it ever goes back up, you will have to deal with them or whoever owns the loan at that time.
If the HELOC was maxed out for the sole purpose of acquiring/purchasing the property, it “should” also be non-recourse debt, as well as the first.
Consult a CPA for your sitaution.
Considering that $1000 a month could be going into your retirement account, you are throwing away a huge amount of future net worth.February 16, 2008 at 7:56 PM #154728ParticipantYou can make Countrywide your long term partner.
Consider continuing to pay on your 1st, but not on the 2nd.It is doubtful that that CW will foreclose on the 2nd as they will get nothing today. It will remain as a lien on your property, and it will affect your credit scores, but it will also cut your losses every month.
It will allow you hang on a bit longer while you decide what to do. If it ever goes back up, you will have to deal with them or whoever owns the loan at that time.
If the HELOC was maxed out for the sole purpose of acquiring/purchasing the property, it “should” also be non-recourse debt, as well as the first.
Consult a CPA for your sitaution.
Considering that $1000 a month could be going into your retirement account, you are throwing away a huge amount of future net worth.February 17, 2008 at 12:23 AM #154419Deal Hunter
ParticipantReal Options, Real Consequences
If you walk away, you’ll save money, but you’ll still be liable for the bank’s loss unless you settle it formally through a short sale or bankruptcy. If your 2nd is a credit card type of HELOC rather than a closed 2nd mortgage, they can pursue you for that debt for 20 years! If you are really lucky, the banks will discharge your obligations in the foreclosure and not go after you, but if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!
You can still do a short sale even if you are current and on time on your payments. You will need a REALLY REALLY good and EXPERIENCED short sale realtor. The first thing to do is write a letter to the lender explaining that you have a financial hardship and will not be able to continue paying. (Just know that if you stop paying while you wait for the answer, your credit will suffer.)
If you are really tapped out, you have no choice but to take the credit hit on late payments until a short sale is approved. KEEP TRYING TO DO THE SHORT SALE. It will stall a foreclosure for a while.
Another suggestion I have is to tell the lender to stop calling you and to only communicate with you via email or letter. It’s your right and you have documentation of your correspondence.
February 17, 2008 at 12:23 AM #154699ParticipantReal Options, Real Consequences
If you walk away, you’ll save money, but you’ll still be liable for the bank’s loss unless you settle it formally through a short sale or bankruptcy. If your 2nd is a credit card type of HELOC rather than a closed 2nd mortgage, they can pursue you for that debt for 20 years! If you are really lucky, the banks will discharge your obligations in the foreclosure and not go after you, but if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!
You can still do a short sale even if you are current and on time on your payments. You will need a REALLY REALLY good and EXPERIENCED short sale realtor. The first thing to do is write a letter to the lender explaining that you have a financial hardship and will not be able to continue paying. (Just know that if you stop paying while you wait for the answer, your credit will suffer.)
If you are really tapped out, you have no choice but to take the credit hit on late payments until a short sale is approved. KEEP TRYING TO DO THE SHORT SALE. It will stall a foreclosure for a while.
Another suggestion I have is to tell the lender to stop calling you and to only communicate with you via email or letter. It’s your right and you have documentation of your correspondence.
February 17, 2008 at 12:23 AM #154708ParticipantReal Options, Real Consequences
If you walk away, you’ll save money, but you’ll still be liable for the bank’s loss unless you settle it formally through a short sale or bankruptcy. If your 2nd is a credit card type of HELOC rather than a closed 2nd mortgage, they can pursue you for that debt for 20 years! If you are really lucky, the banks will discharge your obligations in the foreclosure and not go after you, but if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!
You can still do a short sale even if you are current and on time on your payments. You will need a REALLY REALLY good and EXPERIENCED short sale realtor. The first thing to do is write a letter to the lender explaining that you have a financial hardship and will not be able to continue paying. (Just know that if you stop paying while you wait for the answer, your credit will suffer.)
If you are really tapped out, you have no choice but to take the credit hit on late payments until a short sale is approved. KEEP TRYING TO DO THE SHORT SALE. It will stall a foreclosure for a while.
Another suggestion I have is to tell the lender to stop calling you and to only communicate with you via email or letter. It’s your right and you have documentation of your correspondence.
February 17, 2008 at 12:23 AM #154720ParticipantReal Options, Real Consequences
If you walk away, you’ll save money, but you’ll still be liable for the bank’s loss unless you settle it formally through a short sale or bankruptcy. If your 2nd is a credit card type of HELOC rather than a closed 2nd mortgage, they can pursue you for that debt for 20 years! If you are really lucky, the banks will discharge your obligations in the foreclosure and not go after you, but if they report their losses to the IRS for deductions, you’ll get a 1099 and your “forgiven” amount will be considered income that you will pay taxes on. Now, try and walk away from an income tax liability!
You can still do a short sale even if you are current and on time on your payments. You will need a REALLY REALLY good and EXPERIENCED short sale realtor. The first thing to do is write a letter to the lender explaining that you have a financial hardship and will not be able to continue paying. (Just know that if you stop paying while you wait for the answer, your credit will suffer.)
If you are really tapped out, you have no choice but to take the credit hit on late payments until a short sale is approved. KEEP TRYING TO DO THE SHORT SALE. It will stall a foreclosure for a while.
Another suggestion I have is to tell the lender to stop calling you and to only communicate with you via email or letter. It’s your right and you have documentation of your correspondence.
-
AuthorPosts
- You must be logged in to reply to this topic.