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7 Bumps

Is the housing market ever going to bounce back? And when will this recession be over?!?!

DH and I bought our home in 2006 in the Midwest. According to multiple publications, our geographic area was one of the few areas in the country that was not experiencing a real estate bubble - prices and sales were directly related to true population growth.

We put 30% down and took a 15 year note. We got a great deal because our home is in an excellent school district and needed work. We put an additional $30,000 (cash - not financed!) of materials (and our own sweat equity) into it. We have also tried to pre-pay our mortgage when we had extra money (we don't have a pre-payment penalty in our mortgage)

Our home has lost more than 50% of its 2006 value. It is now worth exactly what we owe on it. If we had to sell today, we would not only lose the money we spent on improvements, but we would also have to pay the realtor fees out of our pocket. Our home cannot sell for enough to pay both the remaining mortgage balance and realtor fees.

Our neighbors and best friends lost their jobs and are being foreclosed on next week. Their story is like ours - same value and same mortgage debt. They couldn't sell because they owe the same amount as the value of their house. They will be lucky to negotiate a short sale. They lost over $150,000 in equity in the last four years. And, of course, they were turned down for a loan modification last year because they were current on their mortgage. (It is BoA)

I am distraught. We are ok for the time being because we don't have to sell, but we are losing our neighbors. We just keep paying our mortgage and hoping that we will pay down enough debt so that, if we have to sell, we can do so without having to pay out of our pocket.

We thought we were doing everything right - we did our research, bought a home that was affordable, negotiated a great deal, bought in an excellent school district, put more than 20% down, never took the equity out of our home, funneled cash into improvements, and have done the improvements ourselves to minimize cost and maximize equity.

What happened here???? Arrrrrrrgh! Are people really saying that the recession is over . . .. because I am not seeing it.

Answer Question
 
Anonymous

Asked by Anonymous at 2:23 PM on Feb. 11, 2011 in Politics & Current Events

Answers (21)
  • Over 1/2 of Americans owe more than their houses are worth..... I wonder if that was part of Obama's Recovery Plan.....
    grlygrlz2

    Answer by grlygrlz2 at 2:28 PM on Feb. 11, 2011

  • The recession is not over. Everyone that lost jobs aren't going to get their jobs back because the companies that fired them are learning how to maintain their businesses with LESS and LESS workers. I don't see the housing market going back to where it was...it may go up a bit, but won't ever be back where it was.
    Anonymous

    Answer by Anonymous at 2:29 PM on Feb. 11, 2011

  • Yes, but are you in it for the long haul? Do you plan on moving anytime soon? If not, you'll keep doing what you're doing and just ride it out. Our home's value has also gone down but we paid it off in early 2009 and plan to be here for awhile yet so we're not worrying about it.
    Anonymous

    Answer by Anonymous at 2:30 PM on Feb. 11, 2011

  • I hear ya! We've watch our mortgage go under water & lost a lot of equity too. When I called the Govt.'s hotline to get help w/ refinancing at a lower interest rate I got a huge run around. Imagine that. I know it wont solve the issue of it being under water- but why should just the banks get the low-(or zero percent) interest rates on their loans? (We could go down 2-3 percentage points) We could never sell either w/out taking a huge loss. So I guess we just have to stay put until or if things get a lot better. Hopefully sooner rather than later. You're not alone on this one.
    mrsmom110

    Answer by mrsmom110 at 2:31 PM on Feb. 11, 2011

  • It will bounce back, and you will be better off than folks who went underwater.

    I can say that I'm seeing signs of the recession's end where I am. And since I live in a part of the country that got hit first and hardest, there's hope for the rest.
    gdiamante

    Answer by gdiamante at 2:37 PM on Feb. 11, 2011

  • Well if there are no jobs no one can buy a house. If no one can buy a house, then the houses on the market wont sell. The banks were bailed out but fail to give out loans or to help home owners the way I believe was planned. So until the mess with jobs is worked out and we bring some of them back from overseas I think our economy will continue to go in the toilet, which means the housing market will stay in the toilet as well.
    gemgem

    Answer by gemgem at 2:38 PM on Feb. 11, 2011

  • "I don't see the housing market going back to where it was . . . it may go up a bit, but won't ever be back where it was"

    I think you may be right. Our realtor is telling us that it will be different in five years. But she is a huge optimist and was in denial about the real estate crash until it became blatantly undeniable.

    Can someone tell me how this happened? Really? We aren't subprime borrowers. We didn't try to get into a house with 3% down. We didn't get a "LIAR" loan. We tried to be responsible about the whole thing!
    Anonymous

    Comment by Anonymous (original poster) at 2:42 PM on Feb. 11, 2011

  • Last month was another wave of filing foreclosures... the market i about to take another dive!!! which is why I'm glad we're waitingto buy... went down 50K from a year ago when we were looking... so any extra off is a blessing?
    MommaClark3

    Answer by MommaClark3 at 2:50 PM on Feb. 11, 2011

  • Last month was another wave of filing foreclosures...


    If you are an investor, this may be a good time to buy.... We are in real estate for the longhaul... The properties we own are rentals we have included in our long term investment portfolio. It's not something to rush into, but it IS something that could be worth buying "low", holding on for 15-20 years, etc.....

    grlygrlz2

    Answer by grlygrlz2 at 2:53 PM on Feb. 11, 2011

  • President Obama has said that the recession is over!!Well i got news for him NO it is NOT.
    grismelda

    Answer by grismelda at 3:27 PM on Feb. 11, 2011

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