One view of the reality of the housing situation.

[Roller Coaster]

I work in a small place in a small suburb in AZ. One couple bought five months ago at $210,000, they are splitting up, the place is now worth $176,000. That means any real offer would lowball that. A single parent works two jobs to make her mortgage, on an ARM that wil reset next year- she has no diposable income now, so next year she'll lose the place. She cannot refinance, since her equity has vanished and now owes more than the value of her house. .Another single parent has lost $100,000 in value in last year and is six months behind, working OT to tread water to make her delinguent payments. Another just bought, has not even closed, and now new houses neary are selling for 20% less than she is buying for, but her credit is shakey so she has to buy now or never. Another wants to sell, cannot since prices are falling and the supply is growing. Add to this a 30% increase in property taxes, based on assessments made year and half ago, and are now overvalued? What real choice is there other than for them all to walk away and cut their losses before it gets even worse?

[chpxiii]

And that's what a lot of people are doing, Roller Coaster.

[DivorceRuinedMe]

Some of them sound exactly like my situation. And that's just what I had to do, walk away and file for BK. Sad but true.

[Boscoe]

Yep. Me too. My only good fortune was that they were investment properties and not the primary residence.

There is going to be hundreds of thousands of people in this predicament over the next 2 years. At least the bk filers will be able to move on with their lives in the near future.

[lrprn]

Unfortunately many homeowners are going to pay a terrible personal price for the artificially inflated housing boom of the last ten years. There's no way it could be sustained forever. And shame on our Congress and govt financial agencies for looking the other way while it happened because big $$ and greed were driving it.

[dscurlock]

I work in a small place in a small suburb in AZ. One couple bought five months ago at $210,000, they are splitting up, the place is now worth $176,000. That means any real offer would lowball that. A single parent works two jobs to make her mortgage, on an ARM that wil reset next year- she has no diposable income now, so next year she'll lose the place. She cannot refinance, since her equity has vanished and now owes more than the value of her house. .Another single parent has lost $100,000 in value in last year and is six months behind, working OT to tread water to make her delinguent payments. Another just bought, has not even closed, and now new houses neary are selling for 20% less than she is buying for, but her credit is shakey so she has to buy now or never. Another wants to sell, cannot since prices are falling and the supply is growing. Add to this a 30% increase in property taxes, based on assessments made year and half ago, and are now overvalued? What real choice is there other than for them all to walk away and cut their losses before it gets even worse?

I feel that pain...I asked for a fixed rate, I got an adjustable rate (just found out today) problems that keep persisting on my credit report (that is not my fault) will not allow me to refinance in feb 2008 (this is when my ballon is due, $20,000) on paper my home is appraised at $127,000 (bullshit) in right in the smack of a new home development community, I may get $95,000 - so ive already lost money in the forseeable future...and if i can not
refinance by 2/2008 then I could be one of those loosing their home, even if i did come up with $20 grand...I would continue to get screwed as the adjustable rate will obvisouly go up on the large loan for the home.

no matter how you look at this, im toast... I cant sell, and I can not refinance, and i do
not see that changing anytime soon.

[Bandit]

Unfortunately many homeowners are going to pay a terrible personal price for the artificially inflated housing boom of the last ten years. There's no way it could be sustained forever. And shame on our Congress and govt financial agencies for looking the other way while it happened because big $$ and greed were driving it.

Absolutely correct. My eyes are still wide open, big as the moon at how the price of homes & condos inflated, especially in the last 3 years just before the market crashed.

Equity is not going to exist for awhile & that is something that may not turn around ever, regardless of what the know it all greedy bankers & politicians say. They LIE.
Buying a home has always been a guaranteed investment with a profit, but right now it is not.

[rrockinggramma]

there is that new FHA secure program to help those refinance. Check it out in the mortgage section.