Underwater Homeowners Thread

[23109VC]

[quote=ibjames]you guys are missing the point.. he’s not a FB.. he’s a guy that can afford his house, but now he sees other houses that are bigger and better, and NOW wants to get a loan mod because his house is even cheaper.

He’s not under financial duress.. he hasn’t lost his job, nothing.. he is looking and seeing the grass is greener and is willing to just dump his house so he can get a bigger house

If I remember correctly, it’s even cheaper than the rent he was paying at that time, he can afford it, he just wants something better now.

Which is just PURE greed[/quote]

I just spent a few more minutes reading all the posts here. I must say I am suprised at how hostile you all are towards me.

Here are the facts:

-I was renting a house.
-I was offered the house to buy from the landlord
the price I was offered was extremely low AT THE TIME. It was about $100k off the original sales price and $50k below any comp at the time.
-I found this site and posted a ton of Q’s looking for guidance.
-I talked to other people who I know who had opinions I valued. Some said buy.
-I weighed the pros/cons and chose to buy. I dind’t just say “fuck” everyone at the PIggington site – I took your opinions into consideration, but ultimately put more weight on other people’s opinions. You guys were right. Unless I had a crystal ball – I had to make the most informed decision I could – and it turned out to be wrong.
-I am now upside down.

I can just sit tight and ride it out and take my lumps, or I can be proactive and pressure my lender to make my loan better. Let’s suppose in the end, because o fthe housing price and the fact that my bank doesn’t want my house back – suppose they don’t lower my balance – they just drop my interest rate down to 4.9% or something like that?

am I a “bad” person screwing you all becaues I play the cards I have and try to sweeten the deal I have?

If I just walk from my house – am I screwing you? it’s my frickin right to walk away if I want. it’s not a pesonal loan – it’s a secured loan and If I walk they take the house.

and while LBJames seems to think I”m comparing myself to Steve Jobs and Bill Gates – I have never claimed aht I’m some business guru – cutting big business deals. if you read my statements to mean that then you are the stupid one. it’s a business arrangement in the sense that it’s a contract. I don’t know the bank, I don’t sleep with the bank, I’m not related to the bank – the bank and I entered into a contract. there is no such thing as a debtors prison nor do you go to jail from breaching contracts. so I can breach it if I want. companies and businesses breach contracts all the time when it suit them to – sometimes it makes more sense to breach, pay the damages, then it does to fulfill the contract. that’s a “business” decision LBJames – in case you didn’t know.

I am NOT a business – but I have a set amount of money that comes in – and I pay a certain amount to my lender. now my home is upside down. It is worth less than I paid – the bank doesn’t really want to foreclose because they will lose a ton of money, so I am in a position to essentially force them into sweetening my terms – so I am making a calculated decision to force a renegotiation – you can call it modification, a business deicions – call it whatever the Fkkk you want.

I made a bad decision, and now I have to deal with it. I am going to make the best decision for ME and my family.

suppose a person smokes their whole life. people told them not to – but they did it anyway. then tey get cancer. they have to decide between just “taking it” and dying or do something about it. yeah, if they hadn’t smoked they wouldn’t be in that situation, but they are. so you can play a blame game and worry about why you are in the situation you are in or you can deal with the situation you are in and try to make the best decisions you can.

[(former)FormerSanDiegan]

Nice smoker analogy. It points out that the mortgage arena is not the only place where we subsidize stupidity (or bad judgment).

But, since you can comfortably afford the payment, I think it may be short-sighted to try to get a loan mod now, depending on the restrictions they might place. Why get a small chunk now, when you can get a larger concession in the future. It also will restrict your use of the property (e.g. you may not be able to rent it out if you want). I would wait another 12 months to see how far underwater you might ultimately be, then make a decision. Your best course might be to refinance or take a mod under Obama’s new program if it comes to fruition.

If I were you I wouldn’t walk now or take any loan mods until I can smell the bottom. Once you see how low things get you’ll get your best deal on a loan mod, refi, or whatever.

You should treat this exactly the same way as those who are renting with a comfortable monthly payment waiting for bottom before taking action and taking advantage of the market.

[(former)FormerSanDiegan]

Nice smoker analogy. It points out that the mortgage arena is not the only place where we subsidize stupidity (or bad judgment).

But, since you can comfortably afford the payment, I think it may be short-sighted to try to get a loan mod now, depending on the restrictions they might place. Why get a small chunk now, when you can get a larger concession in the future. It also will restrict your use of the property (e.g. you may not be able to rent it out if you want). I would wait another 12 months to see how far underwater you might ultimately be, then make a decision. Your best course might be to refinance or take a mod under Obama’s new program if it comes to fruition.

If I were you I wouldn’t walk now or take any loan mods until I can smell the bottom. Once you see how low things get you’ll get your best deal on a loan mod, refi, or whatever.

You should treat this exactly the same way as those who are renting with a comfortable monthly payment waiting for bottom before taking action and taking advantage of the market.

[(former)FormerSanDiegan]

Nice smoker analogy. It points out that the mortgage arena is not the only place where we subsidize stupidity (or bad judgment).

But, since you can comfortably afford the payment, I think it may be short-sighted to try to get a loan mod now, depending on the restrictions they might place. Why get a small chunk now, when you can get a larger concession in the future. It also will restrict your use of the property (e.g. you may not be able to rent it out if you want). I would wait another 12 months to see how far underwater you might ultimately be, then make a decision. Your best course might be to refinance or take a mod under Obama’s new program if it comes to fruition.

If I were you I wouldn’t walk now or take any loan mods until I can smell the bottom. Once you see how low things get you’ll get your best deal on a loan mod, refi, or whatever.

You should treat this exactly the same way as those who are renting with a comfortable monthly payment waiting for bottom before taking action and taking advantage of the market.

[(former)FormerSanDiegan]

Nice smoker analogy. It points out that the mortgage arena is not the only place where we subsidize stupidity (or bad judgment).

But, since you can comfortably afford the payment, I think it may be short-sighted to try to get a loan mod now, depending on the restrictions they might place. Why get a small chunk now, when you can get a larger concession in the future. It also will restrict your use of the property (e.g. you may not be able to rent it out if you want). I would wait another 12 months to see how far underwater you might ultimately be, then make a decision. Your best course might be to refinance or take a mod under Obama’s new program if it comes to fruition.

If I were you I wouldn’t walk now or take any loan mods until I can smell the bottom. Once you see how low things get you’ll get your best deal on a loan mod, refi, or whatever.

You should treat this exactly the same way as those who are renting with a comfortable monthly payment waiting for bottom before taking action and taking advantage of the market.

[(former)FormerSanDiegan]

Nice smoker analogy. It points out that the mortgage arena is not the only place where we subsidize stupidity (or bad judgment).

But, since you can comfortably afford the payment, I think it may be short-sighted to try to get a loan mod now, depending on the restrictions they might place. Why get a small chunk now, when you can get a larger concession in the future. It also will restrict your use of the property (e.g. you may not be able to rent it out if you want). I would wait another 12 months to see how far underwater you might ultimately be, then make a decision. Your best course might be to refinance or take a mod under Obama’s new program if it comes to fruition.

If I were you I wouldn’t walk now or take any loan mods until I can smell the bottom. Once you see how low things get you’ll get your best deal on a loan mod, refi, or whatever.

You should treat this exactly the same way as those who are renting with a comfortable monthly payment waiting for bottom before taking action and taking advantage of the market.

[ibjames]

Yeah, you mentioned earlier when you said you talked to people.. family, friends, realtors.. all thought that housing “couldn’t get any lower!” Everyone told you to consider the sources yet you bought anyway.. on the premis that you LOVED the house, and etc. etc. Now it’s a pile of garbage eh?

“Submitted by 23109VC on April 21, 2007 – 1:21pm.

it’s not a condo. they are SFR’s, detached. I checked the property records, tax assessor records etc. NOT a condo.

I know what you mean about some places that “look” like houses but aren’t. lennar built a development a few miles from harveston up Winchester called Griffith park, or Griffith Place..somethingl ike that. i thikn they call them “courtyard homes”. each structure is freestanding…no shared walls..but they are ON the property lines, and they share driveways….”guest parking” spaces, like a condo. they look/feel like condos in size and the “crammed” in feel..but yet they are “free standing”. they are condos.

Sausalito in Harveston are houses. you own the house and the lot. albeit the lots are on the small side, you still own it.

Despite a lot of you who are telling me NOT to do it, we are leaning toward buying. $350k for a 1900 sq ft house that is loaded with upgrades, in a nice community, in a good part of temecula, with a good location w/in harveston… no hassle of moving, (while my wife is pregnant), we can still get 100% financing, and the sller wil pay ALL our closing costs…

i don’t see these homes hitting high 200s. i think the worst it will get is 300-325k. i could be totally wrong..but if i’m right, and that’s the worst it gets, i’m not really doin that badly.

we have actually thought of bying it for 350k and then immediately listing it for sale at 440k…. and maybe being able to flip it to some sucker. 🙂 if we can’t sell it, we’ll happily stay.
”

It wasn’t a lot of people, it was everyone.. eh.. get it adjusted.. or foreclose, your credit, justify it as I’m sure you will, another reason 20% down has to be the norm., then this decision won’t be so easy

[ibjames]

Yeah, you mentioned earlier when you said you talked to people.. family, friends, realtors.. all thought that housing “couldn’t get any lower!” Everyone told you to consider the sources yet you bought anyway.. on the premis that you LOVED the house, and etc. etc. Now it’s a pile of garbage eh?

“Submitted by 23109VC on April 21, 2007 – 1:21pm.

it’s not a condo. they are SFR’s, detached. I checked the property records, tax assessor records etc. NOT a condo.

I know what you mean about some places that “look” like houses but aren’t. lennar built a development a few miles from harveston up Winchester called Griffith park, or Griffith Place..somethingl ike that. i thikn they call them “courtyard homes”. each structure is freestanding…no shared walls..but they are ON the property lines, and they share driveways….”guest parking” spaces, like a condo. they look/feel like condos in size and the “crammed” in feel..but yet they are “free standing”. they are condos.

Sausalito in Harveston are houses. you own the house and the lot. albeit the lots are on the small side, you still own it.

Despite a lot of you who are telling me NOT to do it, we are leaning toward buying. $350k for a 1900 sq ft house that is loaded with upgrades, in a nice community, in a good part of temecula, with a good location w/in harveston… no hassle of moving, (while my wife is pregnant), we can still get 100% financing, and the sller wil pay ALL our closing costs…

i don’t see these homes hitting high 200s. i think the worst it will get is 300-325k. i could be totally wrong..but if i’m right, and that’s the worst it gets, i’m not really doin that badly.

we have actually thought of bying it for 350k and then immediately listing it for sale at 440k…. and maybe being able to flip it to some sucker. 🙂 if we can’t sell it, we’ll happily stay.
”

It wasn’t a lot of people, it was everyone.. eh.. get it adjusted.. or foreclose, your credit, justify it as I’m sure you will, another reason 20% down has to be the norm., then this decision won’t be so easy

[ibjames]

Yeah, you mentioned earlier when you said you talked to people.. family, friends, realtors.. all thought that housing “couldn’t get any lower!” Everyone told you to consider the sources yet you bought anyway.. on the premis that you LOVED the house, and etc. etc. Now it’s a pile of garbage eh?

“Submitted by 23109VC on April 21, 2007 – 1:21pm.

it’s not a condo. they are SFR’s, detached. I checked the property records, tax assessor records etc. NOT a condo.

I know what you mean about some places that “look” like houses but aren’t. lennar built a development a few miles from harveston up Winchester called Griffith park, or Griffith Place..somethingl ike that. i thikn they call them “courtyard homes”. each structure is freestanding…no shared walls..but they are ON the property lines, and they share driveways….”guest parking” spaces, like a condo. they look/feel like condos in size and the “crammed” in feel..but yet they are “free standing”. they are condos.

Sausalito in Harveston are houses. you own the house and the lot. albeit the lots are on the small side, you still own it.

Despite a lot of you who are telling me NOT to do it, we are leaning toward buying. $350k for a 1900 sq ft house that is loaded with upgrades, in a nice community, in a good part of temecula, with a good location w/in harveston… no hassle of moving, (while my wife is pregnant), we can still get 100% financing, and the sller wil pay ALL our closing costs…

i don’t see these homes hitting high 200s. i think the worst it will get is 300-325k. i could be totally wrong..but if i’m right, and that’s the worst it gets, i’m not really doin that badly.

we have actually thought of bying it for 350k and then immediately listing it for sale at 440k…. and maybe being able to flip it to some sucker. 🙂 if we can’t sell it, we’ll happily stay.
”

It wasn’t a lot of people, it was everyone.. eh.. get it adjusted.. or foreclose, your credit, justify it as I’m sure you will, another reason 20% down has to be the norm., then this decision won’t be so easy

[ibjames]

Yeah, you mentioned earlier when you said you talked to people.. family, friends, realtors.. all thought that housing “couldn’t get any lower!” Everyone told you to consider the sources yet you bought anyway.. on the premis that you LOVED the house, and etc. etc. Now it’s a pile of garbage eh?

“Submitted by 23109VC on April 21, 2007 – 1:21pm.

it’s not a condo. they are SFR’s, detached. I checked the property records, tax assessor records etc. NOT a condo.

I know what you mean about some places that “look” like houses but aren’t. lennar built a development a few miles from harveston up Winchester called Griffith park, or Griffith Place..somethingl ike that. i thikn they call them “courtyard homes”. each structure is freestanding…no shared walls..but they are ON the property lines, and they share driveways….”guest parking” spaces, like a condo. they look/feel like condos in size and the “crammed” in feel..but yet they are “free standing”. they are condos.

Sausalito in Harveston are houses. you own the house and the lot. albeit the lots are on the small side, you still own it.

Despite a lot of you who are telling me NOT to do it, we are leaning toward buying. $350k for a 1900 sq ft house that is loaded with upgrades, in a nice community, in a good part of temecula, with a good location w/in harveston… no hassle of moving, (while my wife is pregnant), we can still get 100% financing, and the sller wil pay ALL our closing costs…

i don’t see these homes hitting high 200s. i think the worst it will get is 300-325k. i could be totally wrong..but if i’m right, and that’s the worst it gets, i’m not really doin that badly.

we have actually thought of bying it for 350k and then immediately listing it for sale at 440k…. and maybe being able to flip it to some sucker. 🙂 if we can’t sell it, we’ll happily stay.
”

It wasn’t a lot of people, it was everyone.. eh.. get it adjusted.. or foreclose, your credit, justify it as I’m sure you will, another reason 20% down has to be the norm., then this decision won’t be so easy

[ibjames]

Yeah, you mentioned earlier when you said you talked to people.. family, friends, realtors.. all thought that housing “couldn’t get any lower!” Everyone told you to consider the sources yet you bought anyway.. on the premis that you LOVED the house, and etc. etc. Now it’s a pile of garbage eh?

“Submitted by 23109VC on April 21, 2007 – 1:21pm.

it’s not a condo. they are SFR’s, detached. I checked the property records, tax assessor records etc. NOT a condo.

I know what you mean about some places that “look” like houses but aren’t. lennar built a development a few miles from harveston up Winchester called Griffith park, or Griffith Place..somethingl ike that. i thikn they call them “courtyard homes”. each structure is freestanding…no shared walls..but they are ON the property lines, and they share driveways….”guest parking” spaces, like a condo. they look/feel like condos in size and the “crammed” in feel..but yet they are “free standing”. they are condos.

Sausalito in Harveston are houses. you own the house and the lot. albeit the lots are on the small side, you still own it.

Despite a lot of you who are telling me NOT to do it, we are leaning toward buying. $350k for a 1900 sq ft house that is loaded with upgrades, in a nice community, in a good part of temecula, with a good location w/in harveston… no hassle of moving, (while my wife is pregnant), we can still get 100% financing, and the sller wil pay ALL our closing costs…

i don’t see these homes hitting high 200s. i think the worst it will get is 300-325k. i could be totally wrong..but if i’m right, and that’s the worst it gets, i’m not really doin that badly.

we have actually thought of bying it for 350k and then immediately listing it for sale at 440k…. and maybe being able to flip it to some sucker. 🙂 if we can’t sell it, we’ll happily stay.
”

It wasn’t a lot of people, it was everyone.. eh.. get it adjusted.. or foreclose, your credit, justify it as I’m sure you will, another reason 20% down has to be the norm., then this decision won’t be so easy

[patientrenter]

[quote=23109VC]
I just spent a few more minutes reading all the posts here. I must say I am suprised at how hostile you all are towards me.
[/quote]

23109VC, the reason many readers here are unhappy with people who bought near the peak with little money down (less than 50%, let’s say) and are now walking or getting bailed out is that

a) the other readers are getting the bill for the loss in the home’s value, (I am assuming the readers are mostly responsible taxpayers), and

b) if home prices had continued to go up, the homeowners would have got to keep the gain in price.

Tails, you win; heads, I lose. Do you see the unfairness issue?

[patientrenter]

[quote=23109VC]
I just spent a few more minutes reading all the posts here. I must say I am suprised at how hostile you all are towards me.
[/quote]

23109VC, the reason many readers here are unhappy with people who bought near the peak with little money down (less than 50%, let’s say) and are now walking or getting bailed out is that

a) the other readers are getting the bill for the loss in the home’s value, (I am assuming the readers are mostly responsible taxpayers), and

b) if home prices had continued to go up, the homeowners would have got to keep the gain in price.

Tails, you win; heads, I lose. Do you see the unfairness issue?

[patientrenter]

[quote=23109VC]
I just spent a few more minutes reading all the posts here. I must say I am suprised at how hostile you all are towards me.
[/quote]

23109VC, the reason many readers here are unhappy with people who bought near the peak with little money down (less than 50%, let’s say) and are now walking or getting bailed out is that

a) the other readers are getting the bill for the loss in the home’s value, (I am assuming the readers are mostly responsible taxpayers), and

b) if home prices had continued to go up, the homeowners would have got to keep the gain in price.

Tails, you win; heads, I lose. Do you see the unfairness issue?

[patientrenter]

[quote=23109VC]
I just spent a few more minutes reading all the posts here. I must say I am suprised at how hostile you all are towards me.
[/quote]

23109VC, the reason many readers here are unhappy with people who bought near the peak with little money down (less than 50%, let’s say) and are now walking or getting bailed out is that

a) the other readers are getting the bill for the loss in the home’s value, (I am assuming the readers are mostly responsible taxpayers), and

b) if home prices had continued to go up, the homeowners would have got to keep the gain in price.

Tails, you win; heads, I lose. Do you see the unfairness issue?

[Author]

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