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23109VC
Participanti forget the street name. it’s the section of Harveston near the large sports park…
if these houses are going down to high 200s… then it will only be a matter of time until they are ALL in this range, or even lower. wow.
almost makes me think about just buying one of these when they hit 250k, and then just WALK from my house. $hit why not!?!
i am starting to see why people who have good jobs, good income, but wind up WAY upside down, and then see a house twice as nice as theirs for $150k LESS than they owe on their house… for sale they buy it and somehow come up with SOME way to get OUT of their existing home, INTO the new one and then hose thelender on the old house.
foreclose on me.. go ahead. if you get into the PERFECT house and the paymetns are even LESS than the old payments… let your credit take the hit, live there for 10 years..
i like my house and have no problem staying there a while. the only thing that would get me thinking to dump it and move to somethig else would be if I could get into a MUCH MUCH nicer house for LESS money. there may come a point where values have dropped so much, and a person can be so upside down that they could replace their house, get MORE house, with MUCH LESS payment, LESS taxes, and some financial advisor would actually ADVISE you to walk from your house and let htem foreclose on it..even with the credit score hit…
who knows. if your house was bought for 350k, and suddenly it’s worth 200k… you are 150 negative. have NO equity, and did 100% financing..so you lose NO DOWN payment..
and you then see a bigger better house that is down the street for $250k that is twice as good as your existing house and you could buy it, save $1000/month.. BUT you’d get foreclosed on the old house.. would you do it?
Participanti forget the street name. it’s the section of Harveston near the large sports park…
if these houses are going down to high 200s… then it will only be a matter of time until they are ALL in this range, or even lower. wow.
almost makes me think about just buying one of these when they hit 250k, and then just WALK from my house. $hit why not!?!
i am starting to see why people who have good jobs, good income, but wind up WAY upside down, and then see a house twice as nice as theirs for $150k LESS than they owe on their house… for sale they buy it and somehow come up with SOME way to get OUT of their existing home, INTO the new one and then hose thelender on the old house.
foreclose on me.. go ahead. if you get into the PERFECT house and the paymetns are even LESS than the old payments… let your credit take the hit, live there for 10 years..
i like my house and have no problem staying there a while. the only thing that would get me thinking to dump it and move to somethig else would be if I could get into a MUCH MUCH nicer house for LESS money. there may come a point where values have dropped so much, and a person can be so upside down that they could replace their house, get MORE house, with MUCH LESS payment, LESS taxes, and some financial advisor would actually ADVISE you to walk from your house and let htem foreclose on it..even with the credit score hit…
who knows. if your house was bought for 350k, and suddenly it’s worth 200k… you are 150 negative. have NO equity, and did 100% financing..so you lose NO DOWN payment..
and you then see a bigger better house that is down the street for $250k that is twice as good as your existing house and you could buy it, save $1000/month.. BUT you’d get foreclosed on the old house.. would you do it?
Participanti forget the street name. it’s the section of Harveston near the large sports park…
if these houses are going down to high 200s… then it will only be a matter of time until they are ALL in this range, or even lower. wow.
almost makes me think about just buying one of these when they hit 250k, and then just WALK from my house. $hit why not!?!
i am starting to see why people who have good jobs, good income, but wind up WAY upside down, and then see a house twice as nice as theirs for $150k LESS than they owe on their house… for sale they buy it and somehow come up with SOME way to get OUT of their existing home, INTO the new one and then hose thelender on the old house.
foreclose on me.. go ahead. if you get into the PERFECT house and the paymetns are even LESS than the old payments… let your credit take the hit, live there for 10 years..
i like my house and have no problem staying there a while. the only thing that would get me thinking to dump it and move to somethig else would be if I could get into a MUCH MUCH nicer house for LESS money. there may come a point where values have dropped so much, and a person can be so upside down that they could replace their house, get MORE house, with MUCH LESS payment, LESS taxes, and some financial advisor would actually ADVISE you to walk from your house and let htem foreclose on it..even with the credit score hit…
who knows. if your house was bought for 350k, and suddenly it’s worth 200k… you are 150 negative. have NO equity, and did 100% financing..so you lose NO DOWN payment..
and you then see a bigger better house that is down the street for $250k that is twice as good as your existing house and you could buy it, save $1000/month.. BUT you’d get foreclosed on the old house.. would you do it?
Participantthis is such interesting stuff. you can see how this is all going to go downhill.
if someone has an 80/20….and has NO equity…and then just decides to “default” and stop paying… what are the banks really going to do? take the house and sell it at a loss?
if you tell them you can’t afford to pay…will they negotiate with you for new terms?
or negotiate for a new/lower rate? i guess for many peole it will depend HOW bad they are underwater, can they afford to keep the house at the “new” price/rate, and how bad will it FUBAR their credit/do they care?
suppose you bought a house at 500k. now it’s worth 350k. you are 150k upside down. you have a rate that is so so on your first, and sucks on a second. assume they aren’t ARMS but 30 year fixeds… you could call up the lender and just say, the house is worth less, I don’t want to eat the loss, so I’m gonna walk and let you hae the 150k loss. unless you sweeten the pot. just basically extort it out of them.
what are they going to do? if you have never refi-d your house..then you are perfectly able to walk away, mail them the keys, and have no repurcussions, other than your credit being tanked. if you tell the lender, you want the second wiped out, or you want the interest rate reduced…
hell, figure out what their REAL loss will be if you walk, and then extort better terms out of them that are better for YOU but NOT as bad as the defalt scenario, and heck, maye they would take it?
anyone think that the banks would concede to this kind of commando/in your face/I’m gonna screw you if you don’t sweeten the pot kind of attitude or would they say F you, get out, we’ll just foreclose..even though they will take a bath if they foreclose on the house???
with the huge number of 100% financed houses…there are PILES of peopel with LITERALLy no equity in a house, and mentally, nothing to lose by walking away. when you put down 20%, walking away hurts b/c you lost your investment. even if the house depreciated a lot and that 20% isn’t really there anymore…it still feels like you are losing your money to walk away from the house. BUT if you ptu down ZERO dollars, and the house has depreciated 150k or more…some large amount, a lot of people EVEN THOUGHT THEY ARE FINANCIALLY ABLE TO MAKE THE PAYMENTS may just saw screw it, and walk away. they might rather just eat the foreclosure, and let hte bank have the house and not have the “loss” to deal with. they’ll go rent something, wipe their hands of the house, and figure since i dind’ tput anythign down, i din’d tlose anythign..in fact, many of them might feel that while walking away is morally a bad thing, that they are making the wisest financial move they can as the house is SO UNDERWATER that keeping it is financially unwise….
smart, educated, and financially solvent people may start walking from their houses b/c they think it is the best thing to do… when that starts happening…when you have the ARM resets who should never have bought in the first place walking awawy, you have one problem..but when the people who COULD afford are also walking away..then you’ll have another wave of problems… and if everyone starts doing it, there will be less and less psychological “stress” for getting foreclosed on.. it will be “no big deal” to people if/when it gets so commonplace.
Participantthis is such interesting stuff. you can see how this is all going to go downhill.
if someone has an 80/20….and has NO equity…and then just decides to “default” and stop paying… what are the banks really going to do? take the house and sell it at a loss?
if you tell them you can’t afford to pay…will they negotiate with you for new terms?
or negotiate for a new/lower rate? i guess for many peole it will depend HOW bad they are underwater, can they afford to keep the house at the “new” price/rate, and how bad will it FUBAR their credit/do they care?
suppose you bought a house at 500k. now it’s worth 350k. you are 150k upside down. you have a rate that is so so on your first, and sucks on a second. assume they aren’t ARMS but 30 year fixeds… you could call up the lender and just say, the house is worth less, I don’t want to eat the loss, so I’m gonna walk and let you hae the 150k loss. unless you sweeten the pot. just basically extort it out of them.
what are they going to do? if you have never refi-d your house..then you are perfectly able to walk away, mail them the keys, and have no repurcussions, other than your credit being tanked. if you tell the lender, you want the second wiped out, or you want the interest rate reduced…
hell, figure out what their REAL loss will be if you walk, and then extort better terms out of them that are better for YOU but NOT as bad as the defalt scenario, and heck, maye they would take it?
anyone think that the banks would concede to this kind of commando/in your face/I’m gonna screw you if you don’t sweeten the pot kind of attitude or would they say F you, get out, we’ll just foreclose..even though they will take a bath if they foreclose on the house???
with the huge number of 100% financed houses…there are PILES of peopel with LITERALLy no equity in a house, and mentally, nothing to lose by walking away. when you put down 20%, walking away hurts b/c you lost your investment. even if the house depreciated a lot and that 20% isn’t really there anymore…it still feels like you are losing your money to walk away from the house. BUT if you ptu down ZERO dollars, and the house has depreciated 150k or more…some large amount, a lot of people EVEN THOUGHT THEY ARE FINANCIALLY ABLE TO MAKE THE PAYMENTS may just saw screw it, and walk away. they might rather just eat the foreclosure, and let hte bank have the house and not have the “loss” to deal with. they’ll go rent something, wipe their hands of the house, and figure since i dind’ tput anythign down, i din’d tlose anythign..in fact, many of them might feel that while walking away is morally a bad thing, that they are making the wisest financial move they can as the house is SO UNDERWATER that keeping it is financially unwise….
smart, educated, and financially solvent people may start walking from their houses b/c they think it is the best thing to do… when that starts happening…when you have the ARM resets who should never have bought in the first place walking awawy, you have one problem..but when the people who COULD afford are also walking away..then you’ll have another wave of problems… and if everyone starts doing it, there will be less and less psychological “stress” for getting foreclosed on.. it will be “no big deal” to people if/when it gets so commonplace.
Participantthis is such interesting stuff. you can see how this is all going to go downhill.
if someone has an 80/20….and has NO equity…and then just decides to “default” and stop paying… what are the banks really going to do? take the house and sell it at a loss?
if you tell them you can’t afford to pay…will they negotiate with you for new terms?
or negotiate for a new/lower rate? i guess for many peole it will depend HOW bad they are underwater, can they afford to keep the house at the “new” price/rate, and how bad will it FUBAR their credit/do they care?
suppose you bought a house at 500k. now it’s worth 350k. you are 150k upside down. you have a rate that is so so on your first, and sucks on a second. assume they aren’t ARMS but 30 year fixeds… you could call up the lender and just say, the house is worth less, I don’t want to eat the loss, so I’m gonna walk and let you hae the 150k loss. unless you sweeten the pot. just basically extort it out of them.
what are they going to do? if you have never refi-d your house..then you are perfectly able to walk away, mail them the keys, and have no repurcussions, other than your credit being tanked. if you tell the lender, you want the second wiped out, or you want the interest rate reduced…
hell, figure out what their REAL loss will be if you walk, and then extort better terms out of them that are better for YOU but NOT as bad as the defalt scenario, and heck, maye they would take it?
anyone think that the banks would concede to this kind of commando/in your face/I’m gonna screw you if you don’t sweeten the pot kind of attitude or would they say F you, get out, we’ll just foreclose..even though they will take a bath if they foreclose on the house???
with the huge number of 100% financed houses…there are PILES of peopel with LITERALLy no equity in a house, and mentally, nothing to lose by walking away. when you put down 20%, walking away hurts b/c you lost your investment. even if the house depreciated a lot and that 20% isn’t really there anymore…it still feels like you are losing your money to walk away from the house. BUT if you ptu down ZERO dollars, and the house has depreciated 150k or more…some large amount, a lot of people EVEN THOUGHT THEY ARE FINANCIALLY ABLE TO MAKE THE PAYMENTS may just saw screw it, and walk away. they might rather just eat the foreclosure, and let hte bank have the house and not have the “loss” to deal with. they’ll go rent something, wipe their hands of the house, and figure since i dind’ tput anythign down, i din’d tlose anythign..in fact, many of them might feel that while walking away is morally a bad thing, that they are making the wisest financial move they can as the house is SO UNDERWATER that keeping it is financially unwise….
smart, educated, and financially solvent people may start walking from their houses b/c they think it is the best thing to do… when that starts happening…when you have the ARM resets who should never have bought in the first place walking awawy, you have one problem..but when the people who COULD afford are also walking away..then you’ll have another wave of problems… and if everyone starts doing it, there will be less and less psychological “stress” for getting foreclosed on.. it will be “no big deal” to people if/when it gets so commonplace.
Participantthis is such interesting stuff. you can see how this is all going to go downhill.
if someone has an 80/20….and has NO equity…and then just decides to “default” and stop paying… what are the banks really going to do? take the house and sell it at a loss?
if you tell them you can’t afford to pay…will they negotiate with you for new terms?
or negotiate for a new/lower rate? i guess for many peole it will depend HOW bad they are underwater, can they afford to keep the house at the “new” price/rate, and how bad will it FUBAR their credit/do they care?
suppose you bought a house at 500k. now it’s worth 350k. you are 150k upside down. you have a rate that is so so on your first, and sucks on a second. assume they aren’t ARMS but 30 year fixeds… you could call up the lender and just say, the house is worth less, I don’t want to eat the loss, so I’m gonna walk and let you hae the 150k loss. unless you sweeten the pot. just basically extort it out of them.
what are they going to do? if you have never refi-d your house..then you are perfectly able to walk away, mail them the keys, and have no repurcussions, other than your credit being tanked. if you tell the lender, you want the second wiped out, or you want the interest rate reduced…
hell, figure out what their REAL loss will be if you walk, and then extort better terms out of them that are better for YOU but NOT as bad as the defalt scenario, and heck, maye they would take it?
anyone think that the banks would concede to this kind of commando/in your face/I’m gonna screw you if you don’t sweeten the pot kind of attitude or would they say F you, get out, we’ll just foreclose..even though they will take a bath if they foreclose on the house???
with the huge number of 100% financed houses…there are PILES of peopel with LITERALLy no equity in a house, and mentally, nothing to lose by walking away. when you put down 20%, walking away hurts b/c you lost your investment. even if the house depreciated a lot and that 20% isn’t really there anymore…it still feels like you are losing your money to walk away from the house. BUT if you ptu down ZERO dollars, and the house has depreciated 150k or more…some large amount, a lot of people EVEN THOUGHT THEY ARE FINANCIALLY ABLE TO MAKE THE PAYMENTS may just saw screw it, and walk away. they might rather just eat the foreclosure, and let hte bank have the house and not have the “loss” to deal with. they’ll go rent something, wipe their hands of the house, and figure since i dind’ tput anythign down, i din’d tlose anythign..in fact, many of them might feel that while walking away is morally a bad thing, that they are making the wisest financial move they can as the house is SO UNDERWATER that keeping it is financially unwise….
smart, educated, and financially solvent people may start walking from their houses b/c they think it is the best thing to do… when that starts happening…when you have the ARM resets who should never have bought in the first place walking awawy, you have one problem..but when the people who COULD afford are also walking away..then you’ll have another wave of problems… and if everyone starts doing it, there will be less and less psychological “stress” for getting foreclosed on.. it will be “no big deal” to people if/when it gets so commonplace.
Participantthis is such interesting stuff. you can see how this is all going to go downhill.
if someone has an 80/20….and has NO equity…and then just decides to “default” and stop paying… what are the banks really going to do? take the house and sell it at a loss?
if you tell them you can’t afford to pay…will they negotiate with you for new terms?
or negotiate for a new/lower rate? i guess for many peole it will depend HOW bad they are underwater, can they afford to keep the house at the “new” price/rate, and how bad will it FUBAR their credit/do they care?
suppose you bought a house at 500k. now it’s worth 350k. you are 150k upside down. you have a rate that is so so on your first, and sucks on a second. assume they aren’t ARMS but 30 year fixeds… you could call up the lender and just say, the house is worth less, I don’t want to eat the loss, so I’m gonna walk and let you hae the 150k loss. unless you sweeten the pot. just basically extort it out of them.
what are they going to do? if you have never refi-d your house..then you are perfectly able to walk away, mail them the keys, and have no repurcussions, other than your credit being tanked. if you tell the lender, you want the second wiped out, or you want the interest rate reduced…
hell, figure out what their REAL loss will be if you walk, and then extort better terms out of them that are better for YOU but NOT as bad as the defalt scenario, and heck, maye they would take it?
anyone think that the banks would concede to this kind of commando/in your face/I’m gonna screw you if you don’t sweeten the pot kind of attitude or would they say F you, get out, we’ll just foreclose..even though they will take a bath if they foreclose on the house???
with the huge number of 100% financed houses…there are PILES of peopel with LITERALLy no equity in a house, and mentally, nothing to lose by walking away. when you put down 20%, walking away hurts b/c you lost your investment. even if the house depreciated a lot and that 20% isn’t really there anymore…it still feels like you are losing your money to walk away from the house. BUT if you ptu down ZERO dollars, and the house has depreciated 150k or more…some large amount, a lot of people EVEN THOUGHT THEY ARE FINANCIALLY ABLE TO MAKE THE PAYMENTS may just saw screw it, and walk away. they might rather just eat the foreclosure, and let hte bank have the house and not have the “loss” to deal with. they’ll go rent something, wipe their hands of the house, and figure since i dind’ tput anythign down, i din’d tlose anythign..in fact, many of them might feel that while walking away is morally a bad thing, that they are making the wisest financial move they can as the house is SO UNDERWATER that keeping it is financially unwise….
smart, educated, and financially solvent people may start walking from their houses b/c they think it is the best thing to do… when that starts happening…when you have the ARM resets who should never have bought in the first place walking awawy, you have one problem..but when the people who COULD afford are also walking away..then you’ll have another wave of problems… and if everyone starts doing it, there will be less and less psychological “stress” for getting foreclosed on.. it will be “no big deal” to people if/when it gets so commonplace.
ParticipantHere I am… I saw my name further up in this thread.
yeah, I bought my 1900 sq ft home for 350k. didn’t think it would go lower. you all said it would. it did. shoot me. 🙂 I gambled and lost. I will admit it.
A home in my same development, that is similar to mine in terms of upgrades, yet larger at 2400sq ft is listing for 375k. given the way things are going, it would not suprise me if my house hits the 200s. high 200s or low 200s… we’ll wait and see.
I’m really not as worried about it as I thought I would be. I really do like my house. I have a fixed rate mortgage with a good rate. So my “losses” are on paper.
I do know that I have kids, I have a stable place to live, and we like our neighborhood/community. I also enjoy being able to fix up/change things, which I could not do if I was renting..or I guess I could, but you wouldn’t do it. For example, since buying I have made modest improvements (cheap, but my own labor/time) that I like, and would not have done to a rental. I’ve installed storage systems in my garage, epoxy coated my floors, upgraded landscaping, am going to do closet organizers… stuff that impacts my day to day enjoyment of the house – and makes my life easier.
you can all make fun of me, say I told you so, or whatever. I’m not really upset. I bought this house as a place to live and raise my kids, not as an investment, or to flip.
I think my only regret will be that in 6-12 months, if the $hit really hits the fan and houses are selling at 250k… then i’ll think that for the same $$ I could have bought a bigger/better house… or simply could have bought my house at a more reasonable price, and put the $$/difference into a better invesement…
i always look on the bright side. i have a good job, which is stable, and somewhat insulated from the economic problems. I know people who have been laid off, and are losing their home, and that’s sad. So, it would be nice if I was renting, and thining I saved money, but things could always be a lot lot worse too.
I went in 100%, so while I may have “lost” money, it’s all on paper. If I were to walk way, I’m not going to lose any money. Not that I’m going to do that, but I guess, in a way, if the market just went down the drain completely, and my $350k house suddenly is worth $100k and rents are at $1000/month. there comes a point where you would feel just plain stupid to keep paying hte mortgage because the values have gone SO LOW that to not just walk away and take advantage of lower rents/etc would be stupidity…the hit to your credit/reputation/price/whatever would be outweighed by the tremendous money you would ave.
where is that point? I don’t know. Right now, even if you say I’m $50k upside down… I’m not thinking “oh no, I need to walk away from my house…” I like it, and plan to be here for the long run.
if in a year and a half, we’ve gone through a mega recession, there is massive unemployment, houses are a dime a dozen, and my house is worth 100k, and I could rent it for $750/month… then maybe you start thinking that you walk…
when/what is that point at which the value/upside down “ratio” or whatever you want to call it is SO serious that it’s actually stupid to stay and pay? I don’t know.
🙂
ParticipantHere I am… I saw my name further up in this thread.
yeah, I bought my 1900 sq ft home for 350k. didn’t think it would go lower. you all said it would. it did. shoot me. 🙂 I gambled and lost. I will admit it.
A home in my same development, that is similar to mine in terms of upgrades, yet larger at 2400sq ft is listing for 375k. given the way things are going, it would not suprise me if my house hits the 200s. high 200s or low 200s… we’ll wait and see.
I’m really not as worried about it as I thought I would be. I really do like my house. I have a fixed rate mortgage with a good rate. So my “losses” are on paper.
I do know that I have kids, I have a stable place to live, and we like our neighborhood/community. I also enjoy being able to fix up/change things, which I could not do if I was renting..or I guess I could, but you wouldn’t do it. For example, since buying I have made modest improvements (cheap, but my own labor/time) that I like, and would not have done to a rental. I’ve installed storage systems in my garage, epoxy coated my floors, upgraded landscaping, am going to do closet organizers… stuff that impacts my day to day enjoyment of the house – and makes my life easier.
you can all make fun of me, say I told you so, or whatever. I’m not really upset. I bought this house as a place to live and raise my kids, not as an investment, or to flip.
I think my only regret will be that in 6-12 months, if the $hit really hits the fan and houses are selling at 250k… then i’ll think that for the same $$ I could have bought a bigger/better house… or simply could have bought my house at a more reasonable price, and put the $$/difference into a better invesement…
i always look on the bright side. i have a good job, which is stable, and somewhat insulated from the economic problems. I know people who have been laid off, and are losing their home, and that’s sad. So, it would be nice if I was renting, and thining I saved money, but things could always be a lot lot worse too.
I went in 100%, so while I may have “lost” money, it’s all on paper. If I were to walk way, I’m not going to lose any money. Not that I’m going to do that, but I guess, in a way, if the market just went down the drain completely, and my $350k house suddenly is worth $100k and rents are at $1000/month. there comes a point where you would feel just plain stupid to keep paying hte mortgage because the values have gone SO LOW that to not just walk away and take advantage of lower rents/etc would be stupidity…the hit to your credit/reputation/price/whatever would be outweighed by the tremendous money you would ave.
where is that point? I don’t know. Right now, even if you say I’m $50k upside down… I’m not thinking “oh no, I need to walk away from my house…” I like it, and plan to be here for the long run.
if in a year and a half, we’ve gone through a mega recession, there is massive unemployment, houses are a dime a dozen, and my house is worth 100k, and I could rent it for $750/month… then maybe you start thinking that you walk…
when/what is that point at which the value/upside down “ratio” or whatever you want to call it is SO serious that it’s actually stupid to stay and pay? I don’t know.
🙂
ParticipantHere I am… I saw my name further up in this thread.
yeah, I bought my 1900 sq ft home for 350k. didn’t think it would go lower. you all said it would. it did. shoot me. 🙂 I gambled and lost. I will admit it.
A home in my same development, that is similar to mine in terms of upgrades, yet larger at 2400sq ft is listing for 375k. given the way things are going, it would not suprise me if my house hits the 200s. high 200s or low 200s… we’ll wait and see.
I’m really not as worried about it as I thought I would be. I really do like my house. I have a fixed rate mortgage with a good rate. So my “losses” are on paper.
I do know that I have kids, I have a stable place to live, and we like our neighborhood/community. I also enjoy being able to fix up/change things, which I could not do if I was renting..or I guess I could, but you wouldn’t do it. For example, since buying I have made modest improvements (cheap, but my own labor/time) that I like, and would not have done to a rental. I’ve installed storage systems in my garage, epoxy coated my floors, upgraded landscaping, am going to do closet organizers… stuff that impacts my day to day enjoyment of the house – and makes my life easier.
you can all make fun of me, say I told you so, or whatever. I’m not really upset. I bought this house as a place to live and raise my kids, not as an investment, or to flip.
I think my only regret will be that in 6-12 months, if the $hit really hits the fan and houses are selling at 250k… then i’ll think that for the same $$ I could have bought a bigger/better house… or simply could have bought my house at a more reasonable price, and put the $$/difference into a better invesement…
i always look on the bright side. i have a good job, which is stable, and somewhat insulated from the economic problems. I know people who have been laid off, and are losing their home, and that’s sad. So, it would be nice if I was renting, and thining I saved money, but things could always be a lot lot worse too.
I went in 100%, so while I may have “lost” money, it’s all on paper. If I were to walk way, I’m not going to lose any money. Not that I’m going to do that, but I guess, in a way, if the market just went down the drain completely, and my $350k house suddenly is worth $100k and rents are at $1000/month. there comes a point where you would feel just plain stupid to keep paying hte mortgage because the values have gone SO LOW that to not just walk away and take advantage of lower rents/etc would be stupidity…the hit to your credit/reputation/price/whatever would be outweighed by the tremendous money you would ave.
where is that point? I don’t know. Right now, even if you say I’m $50k upside down… I’m not thinking “oh no, I need to walk away from my house…” I like it, and plan to be here for the long run.
if in a year and a half, we’ve gone through a mega recession, there is massive unemployment, houses are a dime a dozen, and my house is worth 100k, and I could rent it for $750/month… then maybe you start thinking that you walk…
when/what is that point at which the value/upside down “ratio” or whatever you want to call it is SO serious that it’s actually stupid to stay and pay? I don’t know.
🙂
ParticipantHere I am… I saw my name further up in this thread.
yeah, I bought my 1900 sq ft home for 350k. didn’t think it would go lower. you all said it would. it did. shoot me. 🙂 I gambled and lost. I will admit it.
A home in my same development, that is similar to mine in terms of upgrades, yet larger at 2400sq ft is listing for 375k. given the way things are going, it would not suprise me if my house hits the 200s. high 200s or low 200s… we’ll wait and see.
I’m really not as worried about it as I thought I would be. I really do like my house. I have a fixed rate mortgage with a good rate. So my “losses” are on paper.
I do know that I have kids, I have a stable place to live, and we like our neighborhood/community. I also enjoy being able to fix up/change things, which I could not do if I was renting..or I guess I could, but you wouldn’t do it. For example, since buying I have made modest improvements (cheap, but my own labor/time) that I like, and would not have done to a rental. I’ve installed storage systems in my garage, epoxy coated my floors, upgraded landscaping, am going to do closet organizers… stuff that impacts my day to day enjoyment of the house – and makes my life easier.
you can all make fun of me, say I told you so, or whatever. I’m not really upset. I bought this house as a place to live and raise my kids, not as an investment, or to flip.
I think my only regret will be that in 6-12 months, if the $hit really hits the fan and houses are selling at 250k… then i’ll think that for the same $$ I could have bought a bigger/better house… or simply could have bought my house at a more reasonable price, and put the $$/difference into a better invesement…
i always look on the bright side. i have a good job, which is stable, and somewhat insulated from the economic problems. I know people who have been laid off, and are losing their home, and that’s sad. So, it would be nice if I was renting, and thining I saved money, but things could always be a lot lot worse too.
I went in 100%, so while I may have “lost” money, it’s all on paper. If I were to walk way, I’m not going to lose any money. Not that I’m going to do that, but I guess, in a way, if the market just went down the drain completely, and my $350k house suddenly is worth $100k and rents are at $1000/month. there comes a point where you would feel just plain stupid to keep paying hte mortgage because the values have gone SO LOW that to not just walk away and take advantage of lower rents/etc would be stupidity…the hit to your credit/reputation/price/whatever would be outweighed by the tremendous money you would ave.
where is that point? I don’t know. Right now, even if you say I’m $50k upside down… I’m not thinking “oh no, I need to walk away from my house…” I like it, and plan to be here for the long run.
if in a year and a half, we’ve gone through a mega recession, there is massive unemployment, houses are a dime a dozen, and my house is worth 100k, and I could rent it for $750/month… then maybe you start thinking that you walk…
when/what is that point at which the value/upside down “ratio” or whatever you want to call it is SO serious that it’s actually stupid to stay and pay? I don’t know.
🙂
ParticipantHere I am… I saw my name further up in this thread.
yeah, I bought my 1900 sq ft home for 350k. didn’t think it would go lower. you all said it would. it did. shoot me. 🙂 I gambled and lost. I will admit it.
A home in my same development, that is similar to mine in terms of upgrades, yet larger at 2400sq ft is listing for 375k. given the way things are going, it would not suprise me if my house hits the 200s. high 200s or low 200s… we’ll wait and see.
I’m really not as worried about it as I thought I would be. I really do like my house. I have a fixed rate mortgage with a good rate. So my “losses” are on paper.
I do know that I have kids, I have a stable place to live, and we like our neighborhood/community. I also enjoy being able to fix up/change things, which I could not do if I was renting..or I guess I could, but you wouldn’t do it. For example, since buying I have made modest improvements (cheap, but my own labor/time) that I like, and would not have done to a rental. I’ve installed storage systems in my garage, epoxy coated my floors, upgraded landscaping, am going to do closet organizers… stuff that impacts my day to day enjoyment of the house – and makes my life easier.
you can all make fun of me, say I told you so, or whatever. I’m not really upset. I bought this house as a place to live and raise my kids, not as an investment, or to flip.
I think my only regret will be that in 6-12 months, if the $hit really hits the fan and houses are selling at 250k… then i’ll think that for the same $$ I could have bought a bigger/better house… or simply could have bought my house at a more reasonable price, and put the $$/difference into a better invesement…
i always look on the bright side. i have a good job, which is stable, and somewhat insulated from the economic problems. I know people who have been laid off, and are losing their home, and that’s sad. So, it would be nice if I was renting, and thining I saved money, but things could always be a lot lot worse too.
I went in 100%, so while I may have “lost” money, it’s all on paper. If I were to walk way, I’m not going to lose any money. Not that I’m going to do that, but I guess, in a way, if the market just went down the drain completely, and my $350k house suddenly is worth $100k and rents are at $1000/month. there comes a point where you would feel just plain stupid to keep paying hte mortgage because the values have gone SO LOW that to not just walk away and take advantage of lower rents/etc would be stupidity…the hit to your credit/reputation/price/whatever would be outweighed by the tremendous money you would ave.
where is that point? I don’t know. Right now, even if you say I’m $50k upside down… I’m not thinking “oh no, I need to walk away from my house…” I like it, and plan to be here for the long run.
if in a year and a half, we’ve gone through a mega recession, there is massive unemployment, houses are a dime a dozen, and my house is worth 100k, and I could rent it for $750/month… then maybe you start thinking that you walk…
when/what is that point at which the value/upside down “ratio” or whatever you want to call it is SO serious that it’s actually stupid to stay and pay? I don’t know.
🙂
ParticipantI live in Harveston. I’ve lived there for almost two years.
I really like the area. It all depends on what you want/need.
If you want a big lot, lots of space, and privacy, then it’s not ideal. As others have commented above, the lots are generally on the small side. There are quite a few different builders and different subdivisions that went into Harveston at different phases, and all have different plans, different sized lots, etc. The “cottages” which line the lake and the immediate areas behind/around the lake have the SMALLEST lots in harveston and in my opinion, a poor design. it maximized the number of houses they can put in…but it’s not my cup of tea. the cottages have garages in the rear and the “front” of the house does have a street in front of it, but no driveway. so to park your car you have to approach your house in an alley that runs along the back. it’s very tight and looks like a condo/townhome parking. the houses are so close they look/feel like townhomes – despite being free standing.
There are a few developments that have larger lots.
One thing I’ve noticed about Harveston is that there are VERY few lots that have secluded/private rear yards. First off, the cottages do NOT have backyards…they have a small amount of space between the house and the rear garage…very condo feeling to me.
the other areas that have rear yards either back up onto major streets, interior streets, or back up onto other houses. I have a lot that has a secluded private rear yard that backs up on a greenbelt – but there aren’t a lot of lots iwth that type of location w/in harveston…so you have to consider what you want/need.
one thing I do like about harveston is the HOAs. someone above said that harveston looked like a ghetto..with all due respect, I’ve seen ghettos and Harveston is NOTHING like that at all. the lots in some areas are small, and the houses look cramped, but they are NICE looking houses, and 99% of them have well kept yards. the association does enforce the rules. a neighbor of mine was fined for having a boat in their driveway – it was there for a week or two…they don’t normally keep it there, but got lazy, dind’t return it to the stoarage yard and got nailed. another neighbor got a warning/threat of fine for having some oil stains on their driveway.
I have drien through areas on Winchester/French Valley that have better prices for more square footage and no HOAs, and the yards look like crap. 5 cars in the driveway,front of the house, boats, RVS, motorcycles, oil stains, dead grass…and there are 5 houses in a row like that…THAT looks crappy..not ghetto crappy, but it does not look like an upscale neighborhood.
I personally find tha tmost of Harveston is well kept and in general a nice area. the location is great. 5 min to the mall. 5 min to the freeway. 5 min to Costco. it’s also 5 min to my job. 🙂
if you commute to San Diego, then south Temecula migth be better, but if that’s not an issue – Harveston is very nice.
The lake is great. it’s not Miramar Lake with fishing, and power boats…it’s “large pond”….but it’s pretty, well maintained, and most of the people there are walkign their dogs, jogging, etc. you don’t have gang bangers drinking 40 ouncers on the lawn… the worst thign i’ve seen is the occasional high school couple that are making out on the grass or something…not exactly hard core criminals..
Harveston has a nice pool/spa facility. the clubhouse is available to rent for parties and it is very nice. there are several parks in the area – there is a kiddie park right next to the lake.
i have three small children, and part of why we like Harveston is the kid friendly atmosphere. you can walk from your house (if youlive near the lake) to the lake, let your kids play on the swings, jungle gym, then walk around the lake, and b/c it’s not so big, you can walk around it with kids…and then go back home. you get out, get some fresh air, see some water, let your kids enjoy being outside, and you don’t even have to get in the car.
personally, i would not buy ON the lake. i know people who live ON the lake and they love it. they like the view. but i also hear them complain about the foot traffic that is constantly going by…because the joggers, bikes, etc will be walking around your front yard…not IN your yard, but back and forth near it.
i’d rather live slightly OFF the lake, but close enough to walk to it. which is exactly what i have.
with the prices falling, there are a lot of good deals to be had in Harveston.
if you think you like it but don’t want to buy, then rent something and try it out. if the choice is north Temecula, I don’t think there is anything aside from Hareston that is as nice for the money.
especially if yo have kids…i think for a family this is a nice area.
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