Posted by ToniK on 8/7/07 3:51pm
Msg #204354

Housing market sucks!!!!!

Ok l bought my home 3 years ago in Prince William County, VA near Quantico Marine base. Paid $235K with a VA loan. We had our home appraised twice last year, first time for a refinance cash out f only $30K. Home was appraised at $340K. And 2nd time (8 months later) for equity to renovate some things. Still was $340K. Early 2006 home sales were $360-379K. Then fall hit and numbers dropped. Our next door neighbor husband died in 2006 and she put her home on the market. Was on the MLS for 8 months before it sold June 2007. SHe started out with $324K but finally sold for $260K. There are 75 homes in my immediate section. 30 of them are in foreclosure status. Our home that appraised for $340K last year just came in as (e-appraisal) as $260-$289K. Hubby and I had our home up for sale by owner for 2 months then took it down. We wont be moving since now buyers are asking for $250K plus closing cost and dont forget to add the the Real Estate Agent commission. Ugh...Our lender may have pressured the appraiser into overvaluing our house. But thats not the sad part. Homes are being sold for less than what I paid for 3 years ago. Ugh....I cant afford 2 mortgages and I really want thse 6 bedroom homes that were selling two years ago for $600K now on the market for $399K because they are foreclosed on. If only I can get rid of the current home I have now......

Reply by SueW/Tn on 8/7/07 3:54pm
Msg #204356

Toni...I know this won't help you much BUT

be thankful you're not in Michigan where it's 100 times worse.

Reply by ananotary on 8/7/07 3:54pm
Msg #204357

Can you rent your current home and still cover expenses? n/m

Reply by ToniK on 8/7/07 4:04pm
Msg #204360

Re: Can you rent your current home and still cover expenses?

lol@ sue. I have a friend in Indiana and she says I have it good compared to her housing market.

Ana...I have thought about it but there are no renters. The homes that are renting out are now accepting section 8 vouchers. So now our community is filling up with section 8 renters. This makes me want to move even more. These people do not care about maintaining the property and the landlords have moved too far to even do a driveby. Renting would not cover our mortgage as the average rental is going for $1500-1700. I pay $2700 in mortgage (another reason why I want to move and get a lower payment). If Im desperate enough something is better than nothing. But Im hoping early next year will be better for me. I am really hoping those 6 bedrooms foreclosed home at $399K will be $350K by March next year. Then I wouldnt have a problem with taking a lost in my previous home.

Reply by John_NorCal on 8/7/07 4:53pm
Msg #204371

Re: Can you rent your current home and still cover expenses?

One thing you can consider if this is something that you truly want, is to engage an auction company. This is an up and coming trend in the real estate market for sellers.

Reply by BetsyMI on 8/7/07 5:13pm
Msg #204374

Re: Michigan market

My significant other and I would like to move in together but it doesn't make sense for us to sell both our homes and take a royal bath. They say the housing market here will not turn around for 10 years! Even if he moves in with me, he'll wind up shelling out big time to sell his condo. It's depressing that we can't even make a life change because of what we'd lose.

On the up side, if we bought another place we'd get a really good deal. Like someone else mentioned, we recently looked at a condo that was going for 600K last year and now it's being offered for $399,900. So I guess we have to look at the fact that even though we'd be losing by selling our homes, we'd be gaining by getting a bigger home on a lake or golf course which would eventually be worth more anyway. Have to give it a positive spin somehow, and this is mine!

Reply by Linda_H/FL on 8/7/07 5:40pm
Msg #204381

Re: Housing market sucks!!!!! Yes it does...yes it does..

We finally closed on our home in CT in May after two years on the market - we started as you, by owner, in 9/05 at $425K and we had the comps to back it up - two months later we gave it to a realtor to get more exposure and the house sat on the market for almost two years...we finally accepted $368K with $3K credit so we could stop carrying 3 mortgages (we have one on our house down here)....

We just missed the peak market (which is the story of our lives) - I wish you luck...and I feel your pain.

Reply by Rachel/ORWA on 8/7/07 6:20pm
Msg #204395

Re: Housing market sucks!!!!! Yes it does...yes it does..

The real estate market is like the stock market: when it's low, it's time to get in, not out. If you're already in, it's usually best to ride it out.

That being said, sometimes you have to take a loss.

My sympathies, Toni; I hope you find a viable solution.

Reply by Ndwa on 8/7/07 6:53pm
Msg #204403

Re: Housing market sucks!!!!! Yes it does...yes it does..

Sad...Sad...Sad!

I did 10 short sales for local investors and 4 for an out of towner last month. Makes me wonder how many more are out there.

Reply by Philip Johnson on 8/7/07 7:18pm
Msg #204408

Maybe I'm missing something.

Bought for $235,000, took out we'll say $50,000 in equity and now that the market has corrected it sucks? So it looks to me that you used your house as a bank did what you needed to do and now that the market is in a slump you're peeved at the world. If you hadn't taken that equity out you probably would have been in a position to move up with what used to be called normal appreciation and done pretty well.
The old adage of one makes money when one buys not sells his/her house has probably never been more true then in the current market in which we live.

Reply by ToniK on 8/7/07 9:33pm
Msg #204428

Re: Maybe I'm missing something.

Phillip you may have a point but we would never have taken out equity if we didnt have major issues. Our house was built in 1993. The builders used the most cheapest materials to make our home which we found out after moving in, our first home at that. We're were only 24 years old at the time. The windows needed to be replaced as they had huge gaps and our electric and heat bill was sky high because their was a ocnstant draft during the winter. The seller did a great job in covering up the major issues because our home inspector recommended by the VA (wich I heard VA inspectors supposed to be the most strict) didnt catch no where near half the damages we ended up having to cover. We held off for 3 years before we caved in. We did look to move before getting equity out BUT the housing market was so inflated we couldnt afford to move within our community. If we moved 20 miles south the Fredericksburg we would have faired better. But we had to fix the foundation as the basement bathroom leaked a river during heavy rainstorms, Ceilingin basment bathroom about to collapse due to dishwaher leaking slowing for year and finally bursting. Main bathroom leaked for years into the living room ceiling. Hubby decided to poke his finger in the ceiling and his hand went in. I can go on about the horrible condition the house was in. But being we were a young married couple, he military and I working for CIA with 3 kids and blah blah blah, living paycheck to paycheck we finally caved in and pulled out equity. Nw we are suffering.

So my plan is to sit on this house until March 08 and then sell it get what I can and add the remaining balance onto a foreclosed home that I hope to get for $350-380K. That is if this market continues it downward spiral...so everyone makes mistakes with thier first home. This is a learning experience, I know what to ask and what to look for later

Reply by JanetK_CA on 8/7/07 10:50pm
Msg #204446

Re: Maybe I'm missing something.

Wow! Sorry to hear you ended up with a money pit and found yourself in such a difficult situation. I do hope things work out for you! In your case, it sounds like you invested your equity back into your home vs. just spending it like so many others have.

Unfortuately, Phillip's point applies all too well with many people who took equity out of their homes and used it as a credit card. My heart goes out to people like you who got stuck or had to pay medical bills (supposedly 50% of the foreclosures in CA...) But those who spent it to finance the new cars/SUVs, big screen TVs, expensive vacations, fancy dinners out, designer clothes, etc. -- I don't feel the least bit sorry for them!! And I hope the rest of us taxpayers don't get stuck with some kind of bail-out for those types.

Reply by Dorothy_MI on 8/7/07 10:57pm
Msg #204448

If Mrs. William Clinton has her way

we will all be paying for people that wanted it all and wanted it now! She gave a speech today grousing about how the majority of Americans were losing their homes. Interesting because just today on Fox there was a report that only 4% of all the mortgages in the U.S. are in default -- meaning that 96% of the people are making their payments. Even in the sub-prime loan area less than 10% are in default. The other 90% are either current or within 30 days. At least someone can look at the glass as half full. Now I realize that if your one of the 4% who've lost your job or took a cut in pay, you might have a very hard time looking at it as 1/2 full. It is said that if your neighbor is laid off it's a recession, but if you're laid off it's a depression.

Reply by JanetK_CA on 8/8/07 12:36am
Msg #204459

(getting into OT -- sorta)

Yikes! But she didn't exactly say that the majority of Americans were losing their homes:

""It's a combination now, of economic conditions that are not working for the majority of Americans, and unsavory practices that are undermining the dream of home ownership," Clinton said."

Sounds to me like that means home ownership is out of reach or at risk for most. That may be a bit of an exaggeration, although in your part of the country I don't think "economic conditions" are helping much, are they? I don't know what the percentage of home owners vs. renters is in the whole US, but I heard today that in (So?) Cal, 20% of the loans issued last year were sub-prime! And it's the folks who live in my neck of the woods that I have the least sympathy for, as a group. (Again, I'll except those who have become disabled or have been buried my medical bills.)

I just wish there was some way of separating the poor souls who are deserving of help because their financial problems stem from a medical crisis of some kind (or even those who were lied to) from those who have just been irresponsible. (In my dreams...) I do like what she had to say about cracking down on some of the lending practices that so many of us have groused about here over the years.

Here's the link for the article from which I got this quote, in case anyone is interested:

http://my.earthlink.net/article/pol?guid=20070807/46b7ee40_3ca6_1552620070807-151881166

Reply by Dorothy_MI on 8/8/07 7:21am
Msg #204463

Re: (getting into OT -- sorta)

Janet, thanks for the clarification. I was driving and listening to the radio when I heard (or misheard) the quote. But I guess the real point I was trying to make is that the media jumps on a band wagon and beats it to death until we start to really believe what they are saying. If we believed what they were saying we'd think that EVERYONE was in danger of losing their homes. Even here in MI not EVERYONE is losing their home, not EVERYONE is unemployed. Granted way too many, but it is not in epidemic proportions (and this is from some one who has four houses in a row on my side street for sale. In many areas of the country, prices far exceeded realistic values and are really only doing a market correction. Anyone on this board who has dealt in the real estate market for more than 10 years can tell you that it always has a cycle. As I told my network yesterday, we just have to get through this. In everyone's life there are good times, bad times and times we just have to get through and I'm afraid that that is where we are now.

Reply by JanetK_CA on 8/9/07 12:01am
Msg #204653

Re: (getting into OT -- sorta)

Well put! I'm in one of those areas where I think the run-up in housing prices was artificially high, fed by speculators and investors because of the low interest rates and easy money, i.e. lax underwriting requirements. (Fortunately, though, the economy has been strong here, but the affordability index is very, very low.) I heard tales of bus loads of potential speculators -who suddenly found themselves with tons of equity in their homes - showing up to look at new developments in Arizona, to the point where some developments were restricting the number of non-owner occupied units. (Probably a good idea.) It's just a shame that so many people will be hurt by getting caught up in the frenzy. A correction definitely seems to be in order and it will likely take some time before it swings back. But swing back, it will.

FWIW, I remember trying to buy a home back in the mid 80's when interest rates were in excess of 12%!! Couldn't swing it then, but luckily I was able to get into the market on the dip in the mid 90's. I think we very well may see another "buying opportunity" over the next year or several.

The trick for us will be to find a way to "get through" these bad times...

Reply by jba/fl on 8/7/07 11:15pm
Msg #204452

Toni, you have to be careful of foreclosures too as people

suck them dry before they leave, don't fix as they know they are out. Get your own inspector. Do you have full disclosure laws in your area? In Fl the seller would still be on the hook (don't know how long, but there are legal remedies). best wishes w/your plans.

Reply by CopperheadVA on 8/8/07 8:20am
Msg #204465

Re: Toni, you have to be careful of foreclosures too as people

We don't enjoy the same buyer protection laws here in Virginia. It's pretty much you buy it and anything that comes up is your problem. Many times the inspectors aren't worth a ding dong. I've also had many issues with my home which is only 10 years old - leaks in the bathroom tub/showers, resulting in rotting floors and expensive bathroom remodeling, and also right now I am looking at $12 - $15K in fixing my basement due to water intrusion issues. It's pretty hard to pay for that sort of thing unless you pull some equity out of your home.

Reply by ToniK on 8/8/07 9:22am
Msg #204487

Re: Toni, you have to be careful of foreclosures too as people

Yes I know about that as I have visited some of those homes. But now I realize that I can do some of the work myself. As well as if hiring a contractor get several different quotes before choosing one. The guy who we hired to fix our current home was a neighbor who did home improvements. He claimed he could beat any other estimates we recieved. Even on top of that I even went out and bought the stuff he needed at wholesale price rather him charging me an arma nd a leg. But he messed us over badly. He miscalculated our square footage of the home which resulted in me having to run back and forth to buy stff since he kept coming up short. His employees would bring their kids to the job site, he would tell me he would show up to do whatever at such ans such time and never showed up. Didnt have the courtesy to cal and inform me. And then after all the work was done we ended up having to get an professional to come in and fix his mistakes. I will never ever try to give business that way again.