Every month for the last 6 months, I get a monthly news update from Zillow.com to my work office computer on housing value. For a while, our house value stayed relatively flat especially at the end of last year. It hovered in the mid $230Ks. But now with all the “foreclosures” in full effect, "COMPS" are way depressed. Many existing homeowner’s are just foreclosing on their primary home for bigger and cheaper. For example, we found 4 to 5 bedroom homes, 2 ½ baths, and 3 car garage sold in the low $220Ks to the mid $230Ks. In fact, 3 houses down the street from where we live; a family just moved across the street (yes, just across the street!) because the previous homeowner foreclosed on it and it was now $100K cheaper than what they paid on their original house. It’s the same house model and square footage. It’s was unbelievable! We certainly feel the “times” have shift; low interest rate and plentiful foreclosures for many buyers.
Just like our neighbor, we’d like upgrade to a bigger home for a lot less. Of course that would be ideal in today’s time. Boy that would be really nice…. On the other hand, we are also responsible person.
The good news, however, we can still afford our house payment of about $1,563 a month. Actually, we can afford our house even if it caps at 10% or $2500 a month. We still owe $274K. We’d like to refinance before our interest reset in Jan 2010 into a 30-year fixed rate. But having a negative equity, no late payment history, and good-paying jobs still doesn’t help us qualify for any refinancing options or loan modifications of any kind. We’ve asked my lender and a relative of ours who does loan medication. The best option we’ve heard so far is for us to buy the bigger home for a lot less while putting up our existing home for rental. But that means carrying two mortgage.
With any luck at all, we are just hoping the current interest today will remain our existing interest rate @ 5.0% when it reset. But still. I can’t help asking the question.
Where’s my BAILOUT?
House value just keep dropping...
April 20th, 2009 at 04:19 pm
April 20th, 2009 at 05:35 pm 1240248903
Tell me about it! I was LOL when my lovely city sent out their yearly tax value statement. If I remember correctly, my assessed value (what my house is worth according to THEM) dropped by 4 or 5k. Great, right? Umm, no, wrong! Amazingly enough, my taxable value (the amount on which I am taxed by said city went UP 700-900 dollars) @@ This is soooooooooo something like the city I live in to do.
My house is therefore worth less BUT my taxes will be more.
April 20th, 2009 at 06:22 pm 1240251738
I really think accounts in good standing who happen to be underwater because of insane crashes in home value should be allowed to refi. But I guess we're one of the last few sources of reliable income, so why give us a break on interest? It really stinks though.
April 20th, 2009 at 07:36 pm 1240256196
My next door neighbor bought a shell of a house 3 yrs ago and put 150k into the house, bringing his investment to over 300k, and zillow has his home valued at $162k.
Meanwhile I purchased my home 3 months ago and my home is valued at exactly my purchase price. My home is not nearly as nice as my neighbors, but zillow thinks my home is valued at 40k over my neighbor because zillow just regurgitated the purchase price.
April 22nd, 2009 at 09:14 am 1240391686
June 22nd, 2009 at 10:18 pm 1245709111
March 25th, 2016 at 10:22 pm 1458944539