Well, I’m pretty sick to my stomach!

[seattle-relo]

I wish I had known about this site 5 months ago!!! My husband and I just moved here from Seattle and knew that the market had been making a shift. Boy are we suckers!!!! After talking to real estate agents and locals we really believed this was a good time to buy. HA. Perhaps it’s because we are used to fairly high prices in Seattle that San Diego prices didn’t seem all that bad. Homes are about 10-15% less there. We thought it made sense to buy a house now before the market “rebounds at the end of the summer” as predicted by the liars in the RE business. So we paid 575K for a tiny house in Westwood. We only put 5% down, but our first is fixed and our second a 15 yr, we can afford our payments – maybe no trips to Europe, but at least we can eat. My point in complaining about my situation is to merely point out that a bunch of us buyers are in the dark about the reality of the market. I’ve even brought up the subject with locals and they don’t have a clue about the market. If I had known and been more educated, we would still be renting. Our new place is okay, though not the house I want to live in the rest of my life. I have nightmares at night about our choice to buy now rather than wait a year or more. Seriously. What I’d like is to understand what could happen to all of us who end up seriously upside down in our houses. Those of us who can make the payments. How did people cope through the 90’s when it happened then? I am scared and am just trying to learn the facts to cope with all this. I appologize if I sound like I’m whining, I’m just trying to get a real picture of the consequeces of our decision. Thanks.

[ibjames]

You would be upside down.. if you can afford the payments you will be fine. If you want to sell though that is when you will run into problems.

I don’t know what the refinance would be like also at the end of the 15 years. If you had enough equity by then that the loan terms made sense you would be able to refi, if not, you could be in trouble. I’m sure more can elaborate further.

Read this, a buyer bought knowing property values could decline in his area (area for poss. BIG declines) and he still bought. It’s not the end of the world.
http://piggington.com/so_i_pulled_the_trigger_my_buying_experience_in_temecula_long_st

[ibjames]

You would be upside down.. if you can afford the payments you will be fine. If you want to sell though that is when you will run into problems.

I don’t know what the refinance would be like also at the end of the 15 years. If you had enough equity by then that the loan terms made sense you would be able to refi, if not, you could be in trouble. I’m sure more can elaborate further.

Read this, a buyer bought knowing property values could decline in his area (area for poss. BIG declines) and he still bought. It’s not the end of the world.
http://piggington.com/so_i_pulled_the_trigger_my_buying_experience_in_temecula_long_st

[NotCranky]

“What I’d like is to understand what could happen to all of us who end up seriously upside down in our houses. Those of us who can make the payments.”

You will lose money “on paper” if you stay.
You will have opportunity costs that aren’t the kind you want but that you can ignore if you want to..

You will pay too much for your house.
(You can be glad you did not buy a 2 million dollar house.)

Life will go on and you will enjoy much of it.

OR you could try to sell now, but in theory you are already upside down and would probably have to bring money to the escrow closing, maybe not.

Thanks for being honest and asking.
Best Wishes

[NotCranky]

“What I’d like is to understand what could happen to all of us who end up seriously upside down in our houses. Those of us who can make the payments.”

You will lose money “on paper” if you stay.
You will have opportunity costs that aren’t the kind you want but that you can ignore if you want to..

You will pay too much for your house.
(You can be glad you did not buy a 2 million dollar house.)

Life will go on and you will enjoy much of it.

OR you could try to sell now, but in theory you are already upside down and would probably have to bring money to the escrow closing, maybe not.

Thanks for being honest and asking.
Best Wishes

[JWM in SD]

I feel your pain but don’t expect much sympathy here for your plight. J6Pack is going to have to learn the hard way and he better not freaking ask me to bail him out!!!!

[JWM in SD]

I feel your pain but don’t expect much sympathy here for your plight. J6Pack is going to have to learn the hard way and he better not freaking ask me to bail him out!!!!

[drunkle]

you might try taking advantage of the fact that there are other ignorant people out there. if it doesnt cost you anything to list, do it, see if you get a bite.

[drunkle]

you might try taking advantage of the fact that there are other ignorant people out there. if it doesnt cost you anything to list, do it, see if you get a bite.

[Carlsbadliving]

Do you feel that everyone in Seattle is pretty much in the same stage of denial? Completely unaware of the coming collaspe? I know that the market up there has lagged ours by up to a year. I ask because, I’ll be making the move from SD to Seattle later this summer.

[Carlsbadliving]

Do you feel that everyone in Seattle is pretty much in the same stage of denial? Completely unaware of the coming collaspe? I know that the market up there has lagged ours by up to a year. I ask because, I’ll be making the move from SD to Seattle later this summer.

[DaCounselor]

“After talking to real estate agents and locals we really believed this was a good time to buy. HA. Perhaps it’s because we are used to fairly high prices in Seattle that San Diego prices didn’t seem all that bad. Homes are about 10-15% less there. We thought it made sense to buy a house now before the market “rebounds at the end of the summer” as predicted by the liars in the RE business. So we paid 575K for a tiny house in Westwood.”
____________________________

Where is Westwood in San Diego?

[DaCounselor]

“After talking to real estate agents and locals we really believed this was a good time to buy. HA. Perhaps it’s because we are used to fairly high prices in Seattle that San Diego prices didn’t seem all that bad. Homes are about 10-15% less there. We thought it made sense to buy a house now before the market “rebounds at the end of the summer” as predicted by the liars in the RE business. So we paid 575K for a tiny house in Westwood.”
____________________________

Where is Westwood in San Diego?

[seattle-relo]

I actually mentioned that idea to my husband over the weekend who just thinks I’m crazy and overreacting. He doesn’t believe the market will go down much more than another 5%. Already in Rancho Bernardo there are comparable houses listed more at 550K where we paid 575. Plus our house needs some major repairs (that the sellers didn’t disclose and the inspector missed – another story all together) that would need to be done before listing. I would be all for it though…perhaps I can try to convince him. I guess I can understand that he can’t believe our house could go so down in value let’s say 50% = 275K, where we paid 265K 6 years ago for a crappy 70’s house in a not so great neighborhood in rainy Seattle.(Which could be sold today for about 515 or so) Let me ask, beside the 6% realtor fees are there any taxes to pay – in WA we had to pay excise tax when we sold property.

[seattle-relo]

I actually mentioned that idea to my husband over the weekend who just thinks I’m crazy and overreacting. He doesn’t believe the market will go down much more than another 5%. Already in Rancho Bernardo there are comparable houses listed more at 550K where we paid 575. Plus our house needs some major repairs (that the sellers didn’t disclose and the inspector missed – another story all together) that would need to be done before listing. I would be all for it though…perhaps I can try to convince him. I guess I can understand that he can’t believe our house could go so down in value let’s say 50% = 275K, where we paid 265K 6 years ago for a crappy 70’s house in a not so great neighborhood in rainy Seattle.(Which could be sold today for about 515 or so) Let me ask, beside the 6% realtor fees are there any taxes to pay – in WA we had to pay excise tax when we sold property.

[Author]

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