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| | Author | Messages | |
momof2boys
Posts:75
 | | 08/14/2007 8:28 AM |
 Alert | Rob,
Sorry to hear about your situation. I knew the market was bad out here, but I had no idea until recently when we tried to refinance our house and learned that our home will not appraise to match what we owe anymore. Our home dropped over $70k from what it appraised at when we purchased it. Very sad and depressing. It gives you a horrible feeling of being trapped.
Good luck! | | | |
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| | LeonPotter
Posts:506
| | 08/14/2007 8:29 AM |
Alert | Rob, I'm sorry to hear about out the events that have happened. But, it looks like you took the bull by the horns and looked to what works best for you. What's done is done. All we can do is all we can do.
I believe in keeping life simple as possible. It looks like your creating that for yourself now. Congrats on your new job and your new place near work!! That time you spent in traffic can be spent on other things. Good for you!!
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My answer is "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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| | CODEBLEU
Posts:202
| | 08/14/2007 9:11 AM |
Alert | I'm confused. A recent article in the MaricopaChamber.com website entitled "I Couldn't Have Said it Better Myself" stated that we purchased our Mansions for Pennies on the Dollar.
That article appeared in the beginning of July. How could the market decline so much in one month? Im an old sailor who has seen some come and go over the years but never have I seen it go this quickly. I just read that article a few weeks ago.
Scratching my head as I sip my Cognac and Smoke my Cigar.......
Well, then again there was that time in Bangcock............wow!
------------------------------------------------Commander Codebleu | | | |
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| | momof2boys
Posts:75
| | 08/14/2007 9:17 AM |
Alert | Codebleu,
This has been going on longer than a month. Half of the MANY homes in my area have been for sale since last year! There are 4 houses for sale on my street, and 7 for sale on the street behind mine! | | | |
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| | CODEBLEU
Posts:202
| | 08/14/2007 9:26 AM |
Alert | You must be kidding me because the article I read said we purchased our homes for pennies on the dollar. Im so confused. This article was written by a business leader in our community.
Say it aint so! Im choking on my smoke Commander Codebleu | | | |
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| | vinny
Posts:668
| | 08/14/2007 9:30 AM |
Alert | Posted By momof2boys on 08/14/2007 9:17 AM
Codebleu,
This has been going on longer than a month. Half of the MANY homes in my area have been for sale since last year! There are 4 houses for sale on my street, and 7 for sale on the street behind mine!
hmmm..... and i was startign to think the for sale sign was maricopas city flower, and the residents were so happy to live in this city they all planted one to show support.
there are at least 15 houses for sale on my street, and probably close to 100 in the little section of RED i live in.
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Follow your bliss. Happiness is a conscious decision | |
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|  | Reagan
Posts:737
| | 08/14/2007 9:42 AM |
Alert | Posted By CODEBLEU on 08/14/2007 9:11 AM
I'm confused. A recent article in the MaricopaChamber.com website entitled "I Couldn't Have Said it Better Myself" stated that we purchased our Mansions for Pennies on the Dollar.
That article appeared in the beginning of July. How could the market decline so much in one month? Im an old sailor who has seen some come and go over the years but never have I seen it go this quickly. I just read that article a few weeks ago.
Scratching my head as I sip my Cognac and Smoke my Cigar.......
Well, then again there was that time in Bangcock............wow!
------------------------------------------------Commander Codebleu
I think, at least in some parts, it has really declined in the last few months. I know someone in VRED that purchased about 4-5 months back. They got a deal, it appraised just under 500k, but they purchased for much, much less. Now he is trying to sell for around 300k, and they were told it is only worth at best 330k-360k right now. They were told this by an appraiser because of the deals the builder was giving just to sell off their last few. Since there aren't any resales because of these great builder deals, it is ruining all the comps, because those big discounts the builder is giving, is now the highest and best comparable sold homes in recently history.
It is great if you can get in on a great builder deal, but it, at least for the short term, is ruinging it for the rest of us. | |
Welfare's purpose should be to eliminate, as far as possible, the need for its own existence.
Reagan, Los Angeles Times, January 7, 1970 | |
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| | momof2boys
Posts:75
| | 08/14/2007 9:45 AM |
Alert | LOL Vinny! Maybe someone decided that a for sale sign in your yard is all the rage of lawn decorating and I just didnt get the memo!
But honestly, the existing homes are having trouble selling against the builders. The builders are selling huge homes for dirt cheap and full of upgrades and incentives. The existing homes just cant compete right now. Even the builders who are practically giving their homes away are having trouble selling lots!
I really feel for the people who HAVE to move and sell right now. It just is not pretty. | | | |
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| | CrownNCoke
Posts:810
| | 08/14/2007 9:46 AM |
Alert | Posted By CODEBLEU on 08/14/2007 9:11 AM
I'm confused. A recent article in the MaricopaChamber.com website entitled "I Couldn't Have Said it Better Myself" stated that we purchased our Mansions for Pennies on the Dollar.
That article appeared in the beginning of July. How could the market decline so much in one month? Im an old sailor who has seen some come and go over the years but never have I seen it go this quickly. I just read that article a few weeks ago.
Scratching my head as I sip my Cognac and Smoke my Cigar.......
Well, then again there was that time in Bangcock............wow!
------------------------------------------------Commander Codebleu
The saying don’t believe everything you hear applies to reading as well. I am glad that I had some good friends in the business and was told to hold off for a year and see what happens...well looks like I will give it about 8-15 months and snatch up a cheap foreclosure. Sold high then wait wait wait and buy cheap!!! | |
The meeting of two personalities is like the contact of two chemical substances: if there is any reaction, both are transformed.
Carl Jung | |
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| | Rob
Posts:13
| | 08/14/2007 10:00 AM |
Alert | Posted By MommaToni on 08/13/2007 4:47 PM
No but you should try a deed in Leui of forclosure..... call you mortgage companies andsee if you can work that out. It's basically not having to go through all that drama and just signing the house back over to them.
Unfortunately, you can't do a Deed in Lieu of Foreclosure if you have a 2nd mortgage. Believe me, I've looked into EVERY other option, and feel this is my last resort.
Posted By vinny on 08/13/2007 5:29 PM
its aweful for you. but you dug your own grave. did you really think the housing market around here would go forever with thousands of new houses being built all over the valley?
when we first moved tp phx metro EVERYONE was a real estate genious, telling us how stupid we were for "thowing away" our money on rent when we could just buy a brand new house. I paid $500 a month for 3 months and now I pay about $900/mo for the last 17 months. i spent $16,000 in almost 2 years for a roof over my head. i could have bought a house for $250,000 that are now selling new for $130,000. that would have been a much better idea. i only would have lost around $120,000, assuming my adjustable rate mortgage didn't go so high i couldn't afford it.....
I know this is the result of my own doing, I'm not trying to blame anyone but myself (OK, maybe my b**** ex-wife who demanded we purchase, and demanded we get the 2nd mortgage). I agree with you about renting. My rent in my new apt is $935/mo. I will "throw away"
$11,220/yr to rent. Staying in the house, I'm throwing away $1900/mo, or $22,800/yr to mortgage. I've been there 2 years already. So if I stick around 2 more, that's 4 years or $91,200 spent on mortgage, of which I'll get $0 back in return. Yeah, GREAT investment! I don't mind having the foreclosure on my credit for the next several years. It's what I deserve, but I don't worry too much about not being able to buy a house again for a while.
Posted By pissedparent on 08/13/2007 7:47 PM
You should just sell it for what you can get and pay off the debt YOU created. To foreclose or file for bankruptcy is really sad and irresponsible.
You're absolutely right! As I said above, I have exhausted every possible avenue. I would rather avoid a foreclosure if I could. Unfortunately, the bank doesn't let you give them what you could sell it for, and bill you for the rest. And I don't have $70,000 lying around to pay the difference with the $160,000 I get after my sale of $175,000, minus commissions. And banks don't just give out $70,000 loans to pay off debts like these. Believe me, I'm not trying to be an irresponsible loser. I got into this situation with the best intentions. Even without the 2nd mortgage, I still bought it for $207,000, which is more than I could sell it for now. So it's not like the 2nd mortgage created this dilemma. I would still be in the same situation today had I not gotten the 2nd mortgage. That just made it $23,000 worse. I don't think I'm at fault for buying a home for $207,000. At the time, anyone would have jumped at the chance to buy a 2113 sf home for that cheap. Unfortunately, I got divorced, and my b**** ex-wife won't pay her share of the mortgage, and I cannot afford it on my own. What am I supposed to do?
Posted By vinny on 08/14/2007 7:48 AM
getting caught up in your own irresponsibility doesn't warrent empathy.
Again, I don't appreciate this comment. How was I irresponsible? For buying a home for $207,000? That was CHEAP at the time? So everyone who bought a home was being irresponsible? The 2nd mortgage I got added $23,000 to what I owed. It did not create the situation I'm in. My house is worth $175,000!!! I would be in the same boat if I owed $207k or $230k. I think some of the blame needs to go to the lenders who approved all these loans based on the inflated appraisals, which proved to be way off.
Posted By LeonPotter on 08/14/2007 8:29 AM
Rob, I'm sorry to hear about out the events that have happened. But, it looks like you took the bull by the horns and looked to what works best for you. What's done is done. All we can do is all we can do.
I believe in keeping life simple as possible. It looks like your creating that for yourself now. Congrats on your new job and your new place near work!! That time you spent in traffic can be spent on other things. Good for you!!
Thanks alot Leon. That's how I see it. I had some unfortunate events happen in my life, which stemmed from some bad decisions (and being controlled by a bad ex-wife), and a horrible housing market, and I'm just trying to take the bull by the horns and do what's best for me. The foreclosure sucks, but I see it like a jail sentence for bad behavior. I'm willing to accept my punishment, and want to start it as soon as possible, to get it over with.
Someone showed my house on Saturday, and said that the buyer wasn't interested because I hadn't replaced my AC filters in a while, and they were dirty. Are you kidding me?! This is the excuse they're using now? And then this morning, it took me an hour to get from CF to I-10. I left my house at 6:53am, and got to I-10 at 7:57. No accident, just traffic. I don't think I could stay in Copa if I had to.
I just wanted to write this post to let everyone know the realities of the Maricopa market. I was believing the hype from people in town and on this message board, who were probably sugar-coating things since they have a vested interest themselves. No one wants to believe things are as bad as they are. I think the truth, no matter how painful, is always better than false hope. | | | |
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| | vinny
Posts:668
| | 08/14/2007 10:32 AM |
Alert | Posted By Rob on 08/14/2007 10:00 AM
Again, I don't appreciate this comment. How was I irresponsible? For buying a home for $207,000? That was CHEAP at the time? So everyone who bought a home was being irresponsible? The 2nd mortgage I got added $23,000 to what I owed. It did not create the situation I'm in. My house is worth $175,000!!! I would be in the same boat if I owed $207k or $230k. I think some of the blame needs to go to the lenders who approved all these loans based on the inflated appraisals, which proved to be way off.
you apparently bought more than you can possibly pay for, and on top of that you pulled more money out of it that really didn't exist. the housing in this market is simply supply and demand.
until recently there was a low supply of houses, and a high demand from people moving here from all over the nation. the builders went all out developing everything they could get their hands on building new homes, and charging much much more than the cost of materials and land. eventually you had to see that the builders would surpass the amount of people looking for houses, creating more supply then demand. that means in order to sell the house the builder needs to drastically drop their price, and now you see houses being sold new for near the ACTUAL cost plus a little profit for the builder. in other words, this market is returning to nomality right now.
this means for people like yourself who got in too deep because you needed to "keep up with the joneses" are in a lot of trouble, and you really have no other option than turning it over to your lender. there is no possible way for you to keep up with the builders prices, quite frankly because they made a KILLING off you, and more from the guy next door. So your only option is to stick your lender with the house that has no amount to go but down. they will in turn take the losses they deserve by offering you too much of a loan, and having too much faith in you.
who is to blame? all of you. the bank is losing their gamble on you, you signed an agreement you couldn't afford and you wouldn't stand up to your wife when you could have saved yourself the money. i hope you learn from this and become a much smarter consumer.
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Follow your bliss. Happiness is a conscious decision | |
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| | Reagan
Posts:737
| | 08/14/2007 10:37 AM |
Alert | | I don't think this was just him not being able to afford it. He also went through a divorce. Just leave the guy alone. He did all he could, and he is paying the price. It isn't like when the bank takes it back, everything is going to be great the next day. He has a long road ahead of him and he will pay the price without you tearing him down. | |
Welfare's purpose should be to eliminate, as far as possible, the need for its own existence.
Reagan, Los Angeles Times, January 7, 1970 | |
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| | Rob
Posts:13
| | 08/14/2007 10:41 AM |
Alert | Posted By vinny on 08/14/2007 10:32 AM Posted By Rob on 08/14/2007 10:00 AM
Again, I don't appreciate this comment. How was I irresponsible? For buying a home for $207,000? That was CHEAP at the time? So everyone who bought a home was being irresponsible? The 2nd mortgage I got added $23,000 to what I owed. It did not create the situation I'm in. My house is worth $175,000!!! I would be in the same boat if I owed $207k or $230k. I think some of the blame needs to go to the lenders who approved all these loans based on the inflated appraisals, which proved to be way off. you apparently bought more than you can possibly pay for, and on top of that you pulled more money out of it that really didn't exist.
Thanks for the lecture. I don't feel bad enough already. You think this is easy for me? I divorced my ex-wife, and true to her evil ways, refuses to pay a dime for the mortgage she signed for. We were able to afford it with our $100,000 household income, but on my $60,000 income alone, it's a little tough. Yes, I've DEFINITELY learned my lesson. Not only about the housing market, but about letting someone call the shots in your life. I'll come out of this with battle scars, but much wiser.
And if I pulled out money that didn't exist, why did the bank agree to it? Aren't they to blame as well? I think these subprime lenders who are going out of business are getting what they knew could be a possibility all along. I hear subprime loans will be a thing of the past, and I think it's great. Maybe if someone would have turned us down, I wouldn't be in this situation today. | | | |
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| | vinny
Posts:668
| | 08/14/2007 10:58 AM |
Alert | the lender is just as much to blame as you, they offered a poor deal and you accepted said deal. you should speak to an attorny about your wifes obligations on the loans, there may be a way to come out with less damage than you think, unless she beat you to this step.
i'm sure most of the "subprime" programs will be out the window. the elimination of them will only further drop the housing prices, because it will cut the demand even lower. there will be less people able to get the financing for the overpriced houses.
if you completly research the best way to salvage your credit rating you may be able to buy your house back in a few years for way less than you had into it.
anyone chatting about how right now is a buyers market is trying to make money off home sales, the real buyers market is still on the way. wait until after october. | |
Follow your bliss. Happiness is a conscious decision | |
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| | livinginthecopasux
Posts:944
| | 08/14/2007 11:15 AM |
Alert | | on a good note they said on the news today that the housing market is on the rise in scottsdale! yeay for them | |
BUSTED! | |
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| | IrishCream
Posts:277
| | 08/14/2007 11:23 AM |
Alert | I have to say, this is all just a bit over my head and maybe (probably) I have no right to post a comment on this topic, but here goes!
My husband broke his back 5 years ago, we fought and fought just to get him worker's compensation and when that finally came through, they tried everything they could to avoid surgery. How can you avoid surgery (I know it's expensive. $27,000's) but this is why companies have this insurance. After 1 1/2 years in terrible pain and many failed attempts at physical therapy and injections directly into his spine of cortizone, they relented and he had the surgery. He can never go back to the same work, he can never lift over 30lbs again and he is already developing arthritis in his back, hips and knees.
All that said, it came time for a settlement offer. We were excited at the prospect of receiving a settlement so that we could, at the very least, invest in a home and pay a mortgage for less than renting. We decided to move out to AZ and did a little research on the housing market. My Grandmother lives in Mesa and told us about Maricopa and the deals they were having, but that you could find deals anywhere in the valley if you looked hard enough. So, in the interest of being sure that Maricopa was the place for us, we decided to rent for a year and get to know the area and the community. Needless to say, we LOVE the community, and we have made some great friends (who just so happen to own their own homes)!
We get a lot of flack for being the ever so dreaded "renters", but at this point, it's so much safer to just rent and pay a portion of someone elses mortgage. If anything happens with the property, we just call the landlord and as long as it's over $50, they get it fixed (under $50 is our responsibility)! We are glad we chose to rent first, because I can guarantee this would have happened to us! I have been here for over a year now and have seen two houses foreclosed on and three houses that have been sitting empty since we moved in, and that's just on my street!! Not to mention, the builders just threw up two more houses at the end of the street, killing the view for other's as well as inflating the market even further. Sadly, this is only going to get worse before it gets better and renting is the safest way to ride it out!
Also, in my defense as a renter, my property is better taken care of than many of the others that are owned by their residents! It's not so much "pride in ownership" as it is "pride in residence" lol!
And Rob, I am also very sorry to hear about your situation. My hubby's ex is doing very similar things to his credit with a home they owned, in fact she still lives in it and finds a way to keep the forclosure "floating" every time it comes up for sherriff sale! We feel for you! | |
“A foolish consistency is the hobgoblin of little minds.”
— Ralph Waldo Emerson | |
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| | LeonPotter
Posts:506
| | 08/14/2007 11:43 AM |
Alert | I believe it's amazing how Rob is being slammed for things that happened. I remember I was being slammed for advising people NOT to buy homes on the original 85239. I didn't make it a blanket statement based on "today's market". I considered the situation that most people have going in. Frankly, most people are not in the position to do it. Just the very nature of using debt to finance it, creates it own hurdles. That isn't mentioning the life events that inevitably take place. But those are the things that open our eyes.
The "American Dream" is often what is being chased. It's said over and over real estate/investments is the road that leads to financial prosperity. Recently, the home "ownership" rate was near 65%. But, the percentage of Americans that are financially independent remains about 3%. That desparity didn't add to me as prosperity in the making.
In my time of review financial situations of people, it came up over and over that people were fortunate to "break even" owning a home. This was before any life events took hold. I saw first hand what happened behind the scenes. I also witnessed how it didn't add up in the balance sheet of households.
But, we hear(d) over and over from mortgage broker/ loan officers, tax professionals, investment/financial advisors, real estate agents,etc that buying real estate is the thing to do. So, it's understandable that when I came along a year ago that I would catch more than my share of flak for my views.
But, what I saw was that the thing that people believed was helping them was hurting them. Believe me, I didn't want to be right about that. That was the terrible feeling seeing people make the decisions they made. I hoped I was wrong. But, I knew the odds were greatly against them.
I'm not saying that no one should buy a home or investment property. I'm not saying that real estate is the lone factor of financial demise. It's only part of a bigger picture. What I am saying is one needs to be aware of his own situation and be aware of the odds.
My objective was to help people put the odds of success in their favor. Unfortunately,for most people,the odds of breaking even are challenging enough. This will continue to be the case because most people don't know the universal laws of money. They are like the laws of gravity; we don't see them or may not understand them, but they apply to all of us.
There is another player in the game. As human beings, we are subject to emotions. The challenge is bigger because we don't live in a vacuum and are subject to the emotions of others, too.
However, it can be done. I believe Rob is off to a good start.
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My answer is "NO" to Q#5 and Q#1.
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
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| | Rob
Posts:13
| | 08/14/2007 12:00 PM |
Alert | Thanks again, Leon. I appreciate the support.
This article just came out on cnn.com today, and lists Phoenix as #22 in foreclosures, with one in every 74 households, and up 139% over the first half of 2006.
http://money.cnn.com/2007/08/14/real_estate/California_cities_lead_foreclosure/index.htm?cnn=yes
It doesn't look good people. I don't mean to break everyone's spirit, but like Leon, I'm trying to share the truth of my situation, in hopes that it will help someone somehow. Hopefully someone can learn from my failure. Even if it means disappointing others who are already there. | | | |
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| | YZRacer
Posts:1596
| | 08/14/2007 12:00 PM |
Alert | sorry to hear about your troubles. although not quite as bad, we are in a bad spot too. we purchased our 2425sq ft Cobblestone home in Feb 05 for $240K after upgrades. My health turned south and hubby got a forced demotion (and the accompanying pay cut). We would like to downgrade to something smaller, less out of pocket each month, but our home appraised recently for $170. We owe, $236ish, after interest for the last 1.5 years or so (30 year fixed, no 2nds or home equity loans etc). We are stuck, rolling pennies until things straighten up.
I don't think you are being irresponsible. stuff happens. we all got fooled by the crazy market, that's why we all moved to 'copa anyway! jeez!
Good luck to you! | |
If you can't spot the loser, it might be you
Senior Member
Posts: 665
Joined: Jun 2006 | |
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| | Rob
Posts:13
| | 08/14/2007 12:15 PM |
Alert | Posted By YZRacer on 08/14/2007 12:00 PM
sorry to hear about your troubles. although not quite as bad, we are in a bad spot too. we purchased our 2425sq ft Cobblestone home in Feb 05 for $240K after upgrades. My health turned south and hubby got a forced demotion (and the accompanying pay cut). We would like to downgrade to something smaller, less out of pocket each month, but our home appraised recently for $170.
OUCH! I think everyone in Copa is in that situation - your home is worth less than you paid for it. Well, at least everyone who bought since 2004. So it comes down to whether you're willing (or able) to continue to pay your mortgage for the next 2, 3, or 4 years, until it's worth what you paid. For me, and my drive to work, it's not worth investing another $100,000 in mortgage payments, just to break even with $0 profit. Well, it's not even a possibility, as I can't afford to anyway. But by paying rent for the next 4 years, saving $12,000/yr in mortgage payments, I'll be $48,000 richer than if I stay in the house. | | | |
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