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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by Beth1210
Posted by sometimesmommy
[I would do either but.....Its only on his credit so they will start over unlike so many. We had the same broker and I suspect he knew the bubble would break soon and he pushed them to finance under one spouse so they could buy another home later and qualify for 1st time home buyer programs. I think this may be the reason they can walk away so easily. Whatever the situation--they are not taking it lightly trust me..they keep going back and forth.
honestly- those days are long over
with the new requirments it would be hard to buy a home on LI with 1 income
stated income loans are illegal in NY now
you need to go full doc - and your SO foreclosure will need to be disclosed to the bank
I never understood NO-doc--seemed too easy..yeah you pay a higher interest rate but still seemed too easy.
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Posted 1/3/09 8:48 PM  |
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Prudential Douglas Elliman Real Estate
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lovemy2boys
LIF Adult
Member since 10/07 3915 total posts
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Re: What would you do if your home value fell to the extreme?
Good for them if they can sleep at night....personally I find doing that a crime. Its like stealing. The good news is the karma bus doesn't even tap the brakes when it plows down a-holes like them 
wow, harsh!
but I see that this seemed like it was almost planned if they deliberately put the house under one person's name? If that is the case, then it's wrong. In your OP I thought they were really struggling financially
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| Posted 1/3/09 8:58 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by krissy888
Good for them if they can sleep at night....personally I find doing that a crime. Its like stealing. The good news is the karma bus doesn't even tap the brakes when it plows down a-holes like them
wow, harsh!
but I see that this seemed like it was almost planned if they deliberately put the house under one person's name? If that is the case, then it's wrong. In your OP I thought they were really struggling financially
No it wasnt premeditated it truely comes under deceptive practices from the broker side--we have issues with him too btw. It was one of his selling points for closing mortgages--that you can refi later using both incomes or buy another home. It just so happens that by having the loan structured this way they could buy later at a better price--He is a VP and she is a CPA...
Kharma got him(broker)--he ended up losing his investment properties...
For the record they are not bad people and I am sorry they are coming across that way--I think they are scared like the rest of us...
Message edited 1/3/2009 9:10:17 PM.
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| Posted 1/3/09 9:08 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
With all that is going on with the housing market what would you do if the home you paid 650K for fell to 440K? Would you hold out and suck up the payments when your neighbor just bought the same house for 450K? Your lender isnt willing to modify the loan b/c you make the payments ontime and your income is unchaged. Can you truely blame people for walking away?
DH has friends in Westbury in tihs situation now and I know there are many more families in the same boat.
All of me wants to say they are bad for even considering giving back their keys but there is a part of me that understands why people would.
if you bought a house for 650k then you could obviously afford it and you thought it was worth that much.
You are buying a place to live and you lived in it X years until the price fell and your neighbor bought a house and paid X.
The problem is that people treat homes as some type of wealth instead of what it really is- a place to live.
If you could afford t he 650, if you can make the payments on time and if your salary hasn't changed, why should you be able to modify the loan... to me, that doesn't seem fair- no one held a gun to your head to purchase the house, you shouldn't get an out now just because the market came down.
In the 80s a lot of people lost value in their home- and either you take a loss (because buying ANYTHING that is an investment is a risk- there is no guarantee that it will go up and up).. or you sit in the house!
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| Posted 1/3/09 9:14 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
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Re: What would you do if your home value fell to the extreme?
With all due respect to your friends and everyone else in this situation...There is a REASON that real estate averages growth of 3-4% year over year. Also, your primary residence shouldn't even be considered an investment...it's where you live and it's great if you can sell it at a later date making a little money over your upkeep costs.
Based on what you have posted about this situation, I think it's horrible that your friends are even considering "walking away" just because their home isn't worth as much as when they bought it. Because you know what, all of us that are paying our mortgages at stated by our contracts end up paying for the loss that your friends are putting on the bank. It isn't right or fair. Everyone needs to put on their big girl panties and act like a responsible adult by living up to your responsibilities.
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| Posted 1/3/09 9:16 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
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Karen
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Re: What would you do if your home value fell to the extreme?
Posted by shamrock124
With all due respect to your friends and everyone else in this situation...There is a REASON that real estate averages growth of 3-4% year over year. Also, your primary residence shouldn't even be considered an investment...it's where you live and it's great if you can sell it at a later date making a little money over your upkeep costs.
Based on what you have posted about this situation, I think it's horrible that your friends are even considering "walking away" just because their home isn't worth as much as when they bought it. Because you know what, all of us that are paying our mortgages at stated by our contracts end up paying for the loss that your friends are putting on the bank. It isn't right or fair. Everyone needs to put on their big girl panties and act like a responsible adult by living up to your responsibilities.
Thank you!
And I am still not sure why the blame is on the broker?  I don't see anywhere that he was shady. What I think is shady is people who will willingly walk away from a house that they bought at the BUBBLE. Nobody put a gun to their head and made them purchase during the height of the market.
It's only been 2-3 years, real estate by its very definition is long-term.
ETA: And from your description these are 2 well educated people. Having them playing the victim card only makes themselves book bad, IMO.
Message edited 1/3/2009 9:20:04 PM.
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| Posted 1/3/09 9:18 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
-that wasnt needed..you can state how you feel without going there. Thats really immature.
No, what's immature is two educated people entering a business deal understanding the risk, being able to afford it and then walking away because they can't cash out on their "life goals".
you asked opinions & used an example, we only have the info you gave us to base our opinion on. If you know more about the situation & you want to defend their choice that is your perogative.
Meanwhile based on your example I think they are PART of the problem, not victims.
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| Posted 1/3/09 9:18 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
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Beth
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Re: What would you do if your home value fell to the extreme?
Posted by Karen
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Thank you!
And I am still not sure why the blame is on the broker? I don't see anywhere that he was shady. What I think is shady is people who will willingly walk away from a house that they bought at the BUBBLE. Nobody put a gun to their head and made them purchase during the height of the market.
It's only been 2-3 years, real estate by its very definition is long-term.
b/c when there is no one left to blame- blame the guy that sold you the loan
a VP and CPA should have been no match for a mortgage broker (no offense DH and all my co-workers)
honestly- I have about 25 clients that are really in trouble and I have spoken to hundreds more- not 1 has blamed the banker or broker and some really should
ETA- if they don't care about a foreclosure- why not just make a few late payments and ask for a modification again?
but at the same time I can't see people with such high level jobs wanting to risk their credit score - the long term affects of that out weight any good that will come of it
Message edited 1/3/2009 9:28:42 PM.
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| Posted 1/3/09 9:24 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
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Re: What would you do if your home value fell to the extreme?
Wow! I can't even believe that you can empathize with someone walking away just because they made a bad investment decision. I can COMPLETELY understand being upset that you lost money on your investment, but to think that others should have to foot the bill for that - COMPLETELY ridiculous!!!! When someone just walks away from a mortgage and house OTHERS FOOT THE BILL.
We lost a lot of money in the stock market this year! Should other people have to pay for it? Honestly the whole mentality in this country is starting to make me sick! Take some responsibility for the decisions that you make!!!! When did people start thinking it's okay to just walk away from every bad decision that you made!
My house has lost plenty of value. So what? I made the decision, I'll live with it. If that means someone can now move into my neighborhood at half the price, well then lucky them.
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| Posted 1/3/09 10:00 PM |
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Sneezy
Thankful for my miracle!
Member since 5/05 1939 total posts
Name:
Jen
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Re: What would you do if your home value fell to the extreme?
To even think of walking away is immature and rediculous. The bank will lose money in this situation.
Additionally, when you walk away from a house, I think you lose the downpayment, so they would walk away with nothing. They need to think long and hard before doing something stupid.
If they walk away, they don't deserve another mortgage. What? So they can do this again if things don't go their way? They should grow up and stick it out. Sorry. JMHO.
DH's cousins contemplated this too. DH is a mortgage banker and told them how dumb of an idea it was.
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| Posted 1/3/09 11:07 PM |
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Sneezy
Thankful for my miracle!
Member since 5/05 1939 total posts
Name:
Jen
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Re: What would you do if your home value fell to the extreme?
Posted by lululu
When someone just walks away from a mortgage and house OTHERS FOOT THE BILL.
We lost a lot of money in the stock market this year! Should other people have to pay for it? Honestly the whole mentality in this country is starting to make me sick! Take some responsibility for the decisions that you make!!!! When did people start thinking it's okay to just walk away from every bad decision that you made!
ITA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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| Posted 1/3/09 11:09 PM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: What would you do if your home value fell to the extreme?
The worst things your friends can do is walk away from the house no matter how much equity they have in it, especially if they can afford to make the payments. It will have a negative affect on their credit and it is not worth it going to forclosure. My neighbor paid $13K for his house 20 years ago that is just the nature of the real estate market he thinks we are dumb youngins for paying as much as we did for our house at the height of the bubble. But we are not moving that is just how it goes its called cyclical economics.
When you say "future plans" that is the wrong way of thinking and I agree with the Ops that this is the exact mentality as to why the economy is suffering right now. Your home should never be your source of funding! It should be a good old fashioned pay check, overtime whatever you have to do. Equity is not a savings account! Just ask David Ramsey or Suze Orman I'm not sure who they are listening too but they are in for a fall! I hope they come to their senses. 
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| Posted 1/4/09 1:39 AM |
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Goobster
:)
Member since 5/07 27557 total posts
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:)
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Re: What would you do if your home value fell to the extreme?
Sorry but you deal with the loss if you sell or ride it out if you don't have to sell. That's the way real estate works. There are no guarantees.
We paid top dollar for our home, put in over $100K in renovations also. We know we may likely take a loss when we sell (we are planning to sell when we find our new home) but we reaize that's the way it works. And that the new home we purchase will cost alot less than it would if the market was booming still, so we feel it balances out.
The way we see it is, if you want to think of your home as an investment, you have to realize that the value can fluctuate just as our stocks and other financial investments do. We are ready for the loss but I guess that's b/c we didn't bite off mmore than we could chew with our home purchase/mortgage like many people did. And we are responsible and intelligent enough to realize that ups and downs is what the housing market (or any investment for that matter) is all about and that it is NO ONE's problem but our own.
Message edited 1/4/2009 5:57:13 AM.
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| Posted 1/4/09 5:54 AM |
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Jackie24
~We Did it~
Member since 7/06 6718 total posts
Name:
Jackie
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Re: What would you do if your home value fell to the extreme?
Not only is real estate a long term investment ( so I would suck it up for the long haul)
But there is also a risk when you buy. I bought my house knowing that there are no guarantees on what the future may bring and the what the value of the home may be. Bottom line is there is no crystal ball telling you what will be in the future, its all a game that they DECIDED to play, and they agreed to the loan, therefor I would continue to live there and pay the bills.
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| Posted 1/4/09 8:07 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by Beth1210
Posted by Karen
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Thank you!
And I am still not sure why the blame is on the broker? I don't see anywhere that he was shady. What I think is shady is people who will willingly walk away from a house that they bought at the BUBBLE. Nobody put a gun to their head and made them purchase during the height of the market.
It's only been 2-3 years, real estate by its very definition is long-term.
b/c when there is no one left to blame- blame the guy that sold you the loan
a VP and CPA should have been no match for a mortgage broker (no offense DH and all my co-workers)
honestly- I have about 25 clients that are really in trouble and I have spoken to hundreds more- not 1 has blamed the banker or broker and some really should
ETA- if they don't care about a foreclosure- why not just make a few late payments and ask for a modification again?
but at the same time I can't see people with such high level jobs wanting to risk their credit score - the long term affects of that out weight any good that will come of it
There are other factors involved I am sure-- that they may not discuss with me--
The misconception alot of people have is that many buyers are just throwing their arms up like nothing and making this decision. A part of me dont think that is the case--I truely hope not--since other homeowners are footing the bill as a previous poster said.
They are discussing/contemplating what is the best action--havent acted yet which is different. I know for him his employer has been in the news so again-info I may not be privy to..I am sure people consider irrational things and when they look at the big picture realize its not worth it. They are not the first couple that make $$$ that I have heard discuss it though.
P.S--the titles are overated though lol--His company is big and VP is like director level since they are so many of them and she works in Bethpage--so its $$$ but not "city $$".
Message edited 1/4/2009 9:11:24 AM.
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| Posted 1/4/09 9:01 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: What would you do if your home value fell to the extreme?
Posted by Sneezy
To even think of walking away is immature and rediculous. The bank will lose money in this situation.
Additionally, when you walk away from a house, I think you lose the downpayment, so they would walk away with nothing. They need to think long and hard before doing something stupid.
If they walk away, they don't deserve another mortgage. What? So they can do this again if things don't go their way? They should grow up and stick it out. Sorry. JMHO.
DH's cousins contemplated this too. DH is a mortgage banker and told them how dumb of an idea it was.
ITA 100%--and thanks for proving my other point--that others are contemplating it. I do belive most come to their senses--it has to be tough to lose a DP.
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| Posted 1/4/09 9:05 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: What would you do if your home value fell to the extreme?
Posted by KellyFG
Posted by sometimesmommy
-that wasnt needed..you can state how you feel without going there. Thats really immature.
No, what's immature is two educated people entering a business deal understanding the risk, being able to afford it and then walking away because they can't cash out on their "life goals".
you asked opinions & used an example, we only have the info you gave us to base our opinion on. If you know more about the situation & you want to defend their choice that is your perogative.
Meanwhile based on your example I think they are PART of the problem, not victims.
I dont mind the comments-I was talking more about calling them A$$$$$$$. That was uncalled for--but not surprised.
And I am not defending their choice--Understanding why someone would want out is different than saying you agree with what they are doing is two different things. I dont agree and have told them to wait it out and see. They havent done it yet and hopefully dont.
The OP was really to see what others would do and I am glad to see that folks would stick it out since I am fearful for my OWN investment which can be affected by other's actions.
Message edited 1/4/2009 9:20:34 AM.
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| Posted 1/4/09 9:18 AM |
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MrsM-6-7-08
<3
Member since 8/06 4249 total posts
Name:
Nicole
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Re: What would you do if your home value fell to the extreme?
What someone should do in that situation, if they still have their job, and are financially secure is start putting more money toward principal every single month, and start to pay down that loan faster.
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| Posted 1/4/09 10:09 AM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: What would you do if your home value fell to the extreme?
Posted by sometimesmommy
Posted by KellyFG
Posted by sometimesmommy
-that wasnt needed..you can state how you feel without going there. Thats really immature.
No, what's immature is two educated people entering a business deal understanding the risk, being able to afford it and then walking away because they can't cash out on their "life goals".
you asked opinions & used an example, we only have the info you gave us to base our opinion on. If you know more about the situation & you want to defend their choice that is your perogative.
Meanwhile based on your example I think they are PART of the problem, not victims.
I dont mind the comments-I was talking more about calling them A$$$$$$$. That was uncalled for--but not surprised.
And I am not defending their choice--Understanding why someone would want out is different than saying you agree with what they are doing is two different things. I dont agree and have told them to wait it out and see. They havent done it yet and hopefully dont.
The OP was really to see what others would do and I am glad to see that folks would stick it out since I am fearful for my OWN investment which can be affected by other's actions.
People that consider STEALING from the rest of us should expect to be called names. Others here agreed with my dumbazz comment. You've even posted similar scenarios of how you plan to use a first time homeowner program in your own life to work the system. As long as people continue to believe they are entitled to take advantage & work the system to their benefit our econmony will be negativly affected.
If you disagree that's fine, exploiting your friend's malicious intention & then trying to defend them is just silly.
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| Posted 1/4/09 10:59 AM |
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Re: What would you do if your home value fell to the extreme?
Posted by KellyFG
I don't get why the people you are talking about are complaining, they CAN afford the house right?
My neighbor bought an LCD tv last year for $2100, I bought the EXACT same TV a few weeks ago for $429....I don't think my neighbor would stop paying their best buy credit card & drop the TV back off at the store.
Getting a bad deal on Real Estate because you bought during a bubble IS NOT a valid reason to walk IMO.
Forget what the neighbor paid, your friends need to accept it for what it is. the people that bought my house 4 years before me paid $129,000...but that was a different market. Plenty of things in life & especially in business hinge on timing.
My Dh would agree with you totally. While I agree with you as well, it would be hard for me to except it and I personally think I would be a miserable FXXCK! I would be crying "it's not fair" all night and all day. My Dh would probably want to runme over with his car.
LUCKILYYYYYYYY this is not my situation thank god a million times!!!!
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| Posted 1/4/09 11:45 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: What would you do if your home value fell to the extreme?
Posted by KellyFG
Posted by sometimesmommy
Posted by KellyFG
Posted by sometimesmommy
-that wasnt needed..you can state how you feel without going there. Thats really immature.
No, what's immature is two educated people entering a business deal understanding the risk, being able to afford it and then walking away because they can't cash out on their "life goals".
you asked opinions & used an example, we only have the info you gave us to base our opinion on. If you know more about the situation & you want to defend their choice that is your perogative.
Meanwhile based on your example I think they are PART of the problem, not victims.
I dont mind the comments-I was talking more about calling them A$$$$$$$. That was uncalled for--but not surprised.
And I am not defending their choice--Understanding why someone would want out is different than saying you agree with what they are doing is two different things. I dont agree and have told them to wait it out and see. They havent done it yet and hopefully dont.
The OP was really to see what others would do and I am glad to see that folks would stick it out since I am fearful for my OWN investment which can be affected by other's actions.
People that consider STEALING from the rest of us should expect to be called names. Others here agreed with my dumbazz comment. You've even posted similar scenarios of how you plan to use a first time homeowner program in your own life to work the system. As long as people continue to believe they are entitled to take advantage & work the system to their benefit our econmony will be negativly affected.
If you disagree that's fine, exploiting your friend's malicious intention & then trying to defend them is just silly.
U are not worth getting banned for. But its the thought that counts---- So let me clarify for you --
BTW you can comment on their situation but dont speak for me and what I intend to do/not--there is a difference between what I do vrs what a broker suggested years ago---BIG difference. So keep it to topic before this thread takes a really horrible turn off topic.
Message edited 1/4/2009 1:00:06 PM.
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| Posted 1/4/09 12:33 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What would you do if your home value fell to the extreme?
if they were lied to about the loan
you can do something called a HUD Audit for Truth in lending violations
it's something only an attorney can do -
I doubt there is going to be anything on there in this case - but it's worth a shot
It's done as part of the modification process if the bank is unwilling to work with the borrower
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| Posted 1/4/09 1:07 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: What would you do if your home value fell to the extreme?
Posted by Beth1210
Posted by Karen
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Thank you!
And I am still not sure why the blame is on the broker? I don't see anywhere that he was shady. What I think is shady is people who will willingly walk away from a house that they bought at the BUBBLE. Nobody put a gun to their head and made them purchase during the height of the market.
It's only been 2-3 years, real estate by its very definition is long-term.
b/c when there is no one left to blame- blame the guy that sold you the loan
a VP and CPA should have been no match for a mortgage broker (no offense DH and all my co-workers)
honestly- I have about 25 clients that are really in trouble and I have spoken to hundreds more- not 1 has blamed the banker or broker and some really should
ETA- if they don't care about a foreclosure- why not just make a few late payments and ask for a modification again?
but at the same time I can't see people with such high level jobs wanting to risk their credit score - the long term affects of that out weight any good that will come of it
P.S Beth--this broker was shady--so I am only speaking for him. Our realtor is now a "friend" and she said he had a deal going with the appraiser--some of the houses were "overvalued" so he could close the loan--He and my MIL fell out when she didnt want to use him for a home she was considering a few years ago--she used a differnt guy and the house came in under so she chose not to buy then (and got turned off the process)---he told her that he could have made it "happen"..Still trying to figure out what that meant but makes more sense now. I am just glad that we were dilligent and bought at an estate sale--those factors make me thankful in this economy.
Message edited 1/4/2009 1:12:22 PM.
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| Posted 1/4/09 1:11 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: What would you do if your home value fell to the extreme?
that was a pretty common practice back then - unfortunately
still shady- but homes were over valued- and buyers and sellers didn't care
I personally think there is hope for your friends- there are so many options available to solve a situation like this
- with out a foreclosure
having the bank say no to a borrower about a mod is meaningless- all my clients were told no when they called
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| Posted 1/4/09 1:16 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: What would you do if your home value fell to the extreme?
If you are out there buying a 650k house in the first place, you have nobody to blame but yourself.
The bigger houses take the bigger hits when the RE market goes down.
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| Posted 1/4/09 2:23 PM |
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