Comments on: I'm "UPSIDE-DOWN," What Should I Do? Lose $25k? http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html Tue, 27 Jul 2010 18:14:52 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Dennis http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4526 Dennis Wed, 21 Apr 2010 08:12:59 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4526 In 2004 I purchased a condo in NV. In 2005 after getting married I purchased a home for cash in NV. I kept the condo until I was going to retire in 2008. After retirement the condo was upside down and my income was less. When it is rented out I lose about $200 per month but when vacant which happens often I lose $850 per month. I can make the payments but it is very restrictive as I can't replace my older truck or car as I never know how much my outlay will be from month to month. Any suggestions? In 2004 I purchased a condo in NV. In 2005 after getting married I purchased a home for cash in NV. I kept the condo until I was going to retire in 2008. After retirement the condo was upside down and my income was less. When it is rented out I lose about $200 per month but when vacant which happens often I lose $850 per month. I can make the payments but it is very restrictive as I can’t replace my older truck or car as I never know how much my outlay will be from month to month. Any suggestions?

]]> By: sherry http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4508 sherry Sat, 20 Mar 2010 00:59:35 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4508 we live in wv, and have sought relief from our mortgage companies (1st and 2nd) but have been turned away. my dear hubby lost his job due to health reasons 2 years ago, but is employed but making less that 1/3 his former rate. we are at least 125,000 upside down on our loan. we are current on our mortgages, but at this rate, we are are sick and tired of feeling like hampsters in a never ending wheel. so, my ?? is, where should we start? at a lawyer?? what kind? realestate? bankruptcy? i just don't know what our next step should be. the mortgage companies have been no help at all. our mortgage (1st) is a no intest loan. thanks for any help you can give us. we live in wv, and have sought relief from our mortgage companies (1st and 2nd) but have been turned away. my dear hubby lost his job due to health reasons 2 years ago, but is employed but making less that 1/3 his former rate. we are at least 125,000 upside down on our loan. we are current on our mortgages, but at this rate, we are are sick and tired of feeling like hampsters in a never ending wheel. so, my ?? is, where should we start? at a lawyer?? what kind? realestate? bankruptcy? i just don’t know what our next step should be. the mortgage companies have been no help at all. our mortgage (1st) is a no intest loan. thanks for any help you can give us.

]]> By: Trapped in Tempe http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4211 Trapped in Tempe Mon, 23 Nov 2009 03:27:21 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4211 Lorin, I am single, young, and obviously stupid. So many of my coworkers are either filing for bankruptcy or clearing all their debt with bankruptcy. My problem is kind of like yours, but you also have children to care for. Don't worry about your credit; your familiy's wellbeing is more important. Go buy or rent a more affordable home, and let the condo go. If you and your husbsand are trully facing a financial hardship then then filing bankruptcy will be "easy". Lorin, I am single, young, and obviously stupid. So many of my coworkers are either filing for bankruptcy or clearing all their debt with bankruptcy. My problem is kind of like yours, but you also have children to care for. Don’t worry about your credit; your familiy’s wellbeing is more important. Go buy or rent a more affordable home, and let the condo go. If you and your husbsand are trully facing a financial hardship then then filing bankruptcy will be “easy”.

]]> By: Lorin http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4204 Lorin Mon, 16 Nov 2009 15:55:10 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4204 Yes. I have PLENTY Of hardship. I have been unemployed for over a year and my husband's pay was decreased by 20K a year ago. We are upside down well over 100K in our condo we bought in 2005. We have been trying to get help from the banks for the past year and because we are current they will not help us. Our condo association wants us out because we have three kids now and there is a strict rule of no more than 4 people per unit. My husband even got "cut" and a year later I am once again pregnant. Even though the loan is under my name the banks wont help bc my husband earns too much. But we are spending more than we make,they just dont consider all the costs with kids. My husband also works 2 hours from home, which is a huge expense. I want to move to another home and stop payment on this condo until the banks decide to work with us, but my husband is scared of hurting my credit and also how it could effect his own credit. Any advice? Yes. I have PLENTY Of hardship. I have been unemployed for over a year and my husband’s pay was decreased by 20K a year ago. We are upside down well over 100K in our condo we bought in 2005. We have been trying to get help from the banks for the past year and because we are current they will not help us. Our condo association wants us out because we have three kids now and there is a strict rule of no more than 4 people per unit. My husband even got “cut” and a year later I am once again pregnant. Even though the loan is under my name the banks wont help bc my husband earns too much. But we are spending more than we make,they just dont consider all the costs with kids. My husband also works 2 hours from home, which is a huge expense. I want to move to another home and stop payment on this condo until the banks decide to work with us, but my husband is scared of hurting my credit and also how it could effect his own credit. Any advice?

]]> By: Trapped in Tempe http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4200 Trapped in Tempe Mon, 09 Nov 2009 03:29:11 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4200 I am in the same sinking boat as everyone else. $65K loss! I like the info provided in this blog. The problem is, in the current credit crunch you now need to put 20% down for a home. I can make my current payments, but I don't have 20% to put down an another home and then hope my old house rents. I feel it will most likely not rent and I will just be faced with foreclosue or a short sale with the bank after me for $65K. I have called on the phone and all they will say is "if you dont' have a hardship, then there is nothing we can do." Is my lender legally required to give me written letter stating they wont reduce the principal or reduce my interest? I am in the same sinking boat as everyone else. $65K loss! I like the info provided in this blog. The problem is, in the current credit crunch you now need to put 20% down for a home. I can make my current payments, but I don’t have 20% to put down an another home and then hope my old house rents. I feel it will most likely not rent and I will just be faced with foreclosue or a short sale with the bank after me for $65K.

I have called on the phone and all they will say is “if you dont’ have a hardship, then there is nothing we can do.”
Is my lender legally required to give me written letter stating they wont reduce the principal or reduce my interest?

]]> By: Could it be worse? http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4153 Could it be worse? Fri, 09 Oct 2009 05:55:35 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4153 Based on a late May, 2009 appraisal our house is now worth $200K less than we paid in 2006, and we are upside down about $73K. Wells Fargo is our lender and to my surprise they suggested a short sale. A brief conversation with Wells Fargo short sale specialist revealed they are directing anyone not interested in staying in the house for several years to skip "restructuring" the loan and go for a short sale, and call them when we accept an offer. I had done some research on a mortgage debt relief act passed by congress that would for primary residence exempt us from taxes on the difference between sale price and what we owe. But the real surprise was WF telling me, 1. "commitment met" would be reported to credit agencies, and 2. Wells Fargo would eat the loss and not go after my retirement savings. We need to get out of this house ASAP, but we want to avoid foreclosure. I've done some very rough calculations in my head and and realized that staying put for 10 years will essentially be like paying $2 in loan interest to recover $1 of home value over the next 5 or 10 years. The basic reality is that the new normal is going to mean very slow property appreciation for the next 10 years. Our mortgage payment is $3100 per month with about $2400 in interest. We have friends interested in our house, but I've got an uneasy feeling that the Short Sale option could have pitfalls I'm not considering or aware. And I am concerned that no realtor will be interested in a short sale, and I wonder how many times WF rejects short sale offers EVEN if the offer matches current appraisal (I don't know what Wells Fargo's tendency is for accepting short sale offers. Jon Based on a late May, 2009 appraisal our house is now worth $200K less than we paid in 2006, and we are upside down about $73K. Wells Fargo is our lender and to my surprise they suggested a short sale. A brief conversation with Wells Fargo short sale specialist revealed they are directing anyone not interested in staying in the house for several years to skip “restructuring” the loan and go for a short sale, and call them when we accept an offer. I had done some research on a mortgage debt relief act passed by congress that would for primary residence exempt us from taxes on the difference between sale price and what we owe. But the real surprise was WF telling me, 1. “commitment met” would be reported to credit agencies, and 2. Wells Fargo would eat the loss and not go after my retirement savings.

We need to get out of this house ASAP, but we want to avoid foreclosure. I’ve done some very rough calculations in my head and and realized that staying put for 10 years will essentially be like paying $2 in loan interest to recover $1 of home value over the next 5 or 10 years. The basic reality is that the new normal is going to mean very slow property appreciation for the next 10 years. Our mortgage payment is $3100 per month with about $2400 in interest.

We have friends interested in our house, but I’ve got an uneasy feeling that the Short Sale option could have pitfalls I’m not considering or aware. And I am concerned that no realtor will be interested in a short sale, and I wonder how many times WF rejects short sale offers EVEN if the offer matches current appraisal (I don’t know what Wells Fargo’s tendency is for accepting short sale offers.

Jon

]]> By: FranklyRealty.com http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4031 FranklyRealty.com Wed, 26 Aug 2009 01:06:16 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4031 Rent, Rent, Rent. Rent out your place and move into a larger rental. Why is everyone so obsessed with buying and then buying some more. Frank Rent, Rent, Rent.

Rent out your place and move into a larger rental.

Why is everyone so obsessed with buying and then buying some more.

Frank

]]> By: dsimk2002 http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-4030 dsimk2002 Tue, 25 Aug 2009 21:09:49 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-4030 That was an informative article but I think it still left people up in the air as to what to do. It seemed like the article was leaning towards "take the immediate loss because the long term losses will be greater." OK well I was thinking that way. Where does that leave someone like me that is upside down and doesn't have $10K to $20K to put in? How would someone like me be able to move out of a 2 BR 2 BA Condo into a 3 BR 2 BA Single Family Residence? That was an informative article but I think it still left people up in the air as to what to do. It seemed like the article was leaning towards “take the immediate loss because the long term losses will be greater.”
OK well I was thinking that way. Where does that leave someone like me that is upside down and doesn’t have $10K to $20K to put in? How would someone like me be able to move out of a 2 BR 2 BA Condo into a 3 BR 2 BA Single Family Residence?

]]> By: spkatz http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-1890 spkatz Sun, 21 Dec 2008 07:10:00 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-1890 Due to the market downturn, we are now nearly $200K upside down on our mortgage (the combination of our first and small second mortgages), and I have been unemployed for three months. We are current on all payments, thus far. And, it's possible that my next job may be out of state. Thus, what do we do with our current home; walk away and let it go into foreclosure, seek a short sale, seek a deed in lieu, or??? Please advise. Thanks. Due to the market downturn, we are now nearly $200K upside down on our mortgage (the combination of our first and small second mortgages), and I have been unemployed for three months. We are current on all payments, thus far. And, it’s possible that my next job may be out of state. Thus, what do we do with our current home; walk away and let it go into foreclosure, seek a short sale, seek a deed in lieu, or??? Please advise. Thanks.

]]> By: Anonymous http://blog.franklyrealty.com/2007/01/im-upside-down-what-should-i-do-lose.html/comment-page-1#comment-1891 Anonymous Wed, 29 Oct 2008 23:53:00 +0000 http://franktempblog.wordpress.com/2007/01/16/im-upside-down-what-should-i-do-lose-25k/#comment-1891 My husband and I are a little more then 87,000 dollars upside down. And the houses in my neighborhood just keep dropping. My husband and I are a little more then 87,000 dollars upside down. And the houses in my neighborhood just keep dropping.

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