wnaplay1647545503 Posted January 30, 2012 Report Share Posted January 30, 2012 Is Hilliard considered one of the best school districts? No joke but I have always heard how ghetto Hilliard is and how terrible the schools were. I have rarely been to Hilliard so I just assumed it was true. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 The district is 8 out of 10 and the schools my kids go to are 9/10. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 30, 2012 Report Share Posted January 30, 2012 Things could be worse so Im grateful... but it still doesnt feel good knowing 25 year old Brian is messing up stuff for 32 year old Brian. That guy is such an idiot!!! :lolguy: J/k I would have had to be psychic. Don't look at it that way man. It's simply not true. 25yr old Brian bought a house. That's a big move for someone 25. You had the means and made that happen. That's huge. Look at the world today and think about how difficult it is for so many 25 year olds to do that. Think about what it's going to be like for our kids to do that. Also, think about where you'd be today if you didn't and just simply rented until this year. 7yrs or 72 months of what, rent? gone! You have kids right? No way you'd be in anything less than a $800-900/mo rental forgoing all the tax benefits, etc....All said you'd have tossed away over $85k in money. Far cry from the $30k you "feel" is your negative today. I say feel, because you're basing your position on the market today which feels like it sucks. However it's only a reality if you're forced to sell at a loss or choose to do so. Otherwise, you're really in no different of a position with yourself than you were 3-4 years ago. Does that make sense? Also, having a bigger, nicer fancy home isn't all that. Really, look at what a home does and the value derived from it. We could easily afford to plop another $1,500-$2,500 per month on a house and live large. It would be great, beautiful, etc...but in the end, I'd have more taxes, more outgo in upkeep and a mortgage for how many years? No thanks. I'd rather invest the money and put some of it to better use. Think about of all that money if you took $500mo and put it towards family vacations and invested the rest. I know this, my kids have 4-6 very nice vacations per year to talk about and remember and enjoy, we have no issues buying toys we want and our future income is pretty much set. Not to mention if either of us incurs a situation where we can't work due to sickness, we're fine. Seriously, while tempting, after the initial 5 minutes of thinking about it, I wouldn't trade all that for a 4,000sq ft. house in Dublin. No way. People can justify their large home as an investment all they want. Even at today's low interest rates, 30yrs from now, you'd still likely be way better off to have invested the difference between a smaller home and the large home in other ways. Just use my friend I mentioned earlier. $900mo more than us over 12 years, plus a nice patio and fence and in that short time he basically pissed away $150k more than us and now lives in an even bigger home, with a higher mortgage than before and is strapped to a 30yr note at age 39. No thanks; I'm 42 and we own our humble little home now. I think you did fine and would love to see someone show me otherwise. Quote Link to comment Share on other sites More sharing options...
copperhead Posted January 30, 2012 Report Share Posted January 30, 2012 It is the banks fault in a lot of cases. In mine its not because I wasnt considered high risk. In a lot of cases they approved these increasing rates, and loans for people outside of their means so they could clean up on interest. Thats not an opinion its a fact. That was why the bubble popped in the first place home values continued to go to fuck ever since because of the viewpoint you are taking, in saying that since your house is worth less now then when you bought it, oh well not my problem i'll just walk away. If people would realize that the house they bought was worth to them what they paid for it, and be happy about that, then values would swing back up faster. Yes, if you are in a position to jump to a nicer house without doing anything to fuck up your credit or anyone else's home values then by all means, take advantage of it. I know that I'm stuck in my home, I make all my payments so I wouldn't be able to do a short sale. I'm not trying to bail on my home to jump into another one, but I would like to sell the place within the next ~3 years because I want to leave Ohio. But I have no clue how to do it, since I did a 0% down loan and still owe what I bought it for back in 2007. Quote Link to comment Share on other sites More sharing options...
dakotart Posted January 30, 2012 Report Share Posted January 30, 2012 People can justify their large home as an investment all they want. I think if more people thought, "a home is just a place to hang your hat", the US would be far less likely to be in this housing mess. Quote Link to comment Share on other sites More sharing options...
MattKatz Posted January 30, 2012 Report Share Posted January 30, 2012 Just looking for opinions, not a bitch fest. If you feel I should not persue a shortsale then do so without being an asshole. Thanks .Brian's done nothing wrong in this situation and he's fucked because of other peoples mistakes. No, not mistakes, that would imply an accident. It's more correct to say their reprehensible, and purposefully reckless actions. No, I don't advocate him defaulting if he has another choice, and I believe staying in his house and paying what he's agreed to is a choice. I also wouldn't blame him for doing it either. My end goal is to improve the house enough to where a short sale isnt too much of a loss and they approve it. The problem is getting them to give me a number to shoot for. If they count $40K as income that would boost me to a different tax bracket, $20k wouldnt. Ok...Heres my Take because Im in a SImilar Situation right now....Ive been in my house for 10 years, and Ill be lucky to break even on it when I sell in the next few months as we are house shopping now. THe problem initially were the people who took loans that they couldnt afford, but now the problem is people, Like Brian, who CAN afford the home they're in, but are mad the market tanked, their property isnt worth what it was, and feel they should walk away. Way to Go Brian, Way to contribute to the downfall of the market even further. In essence, youre telling me personally to fuck off, and I dont like it. I am not gonna walk away, I bought a House I could afford and was a good deal 10 years ago, I added 25-30K into it, and it should have paid me back for these investments, until the bottom dropped out. Now I will be lucky to get what I originally payed for the place, in essence Im gonna lose $30K+ on this house. But this iis Life, and the market and it Sucks. In reality, your far from being able to even talk to a Bank about a Short sale as you are not at or near forclosure, and until you are, they wont even look at you as your not a risk of not paying. Its your Choice to do this, but if you do....I want to personally thank you for contribuitng to taking just that much more money out of the pockets of those of us that were intelligent with our finances.....Thanks again Brian. Quote Link to comment Share on other sites More sharing options...
Patterson Posted January 30, 2012 Report Share Posted January 30, 2012 Stay where you are at. Simply put. Speaking from personal experience it has taken me 6 years to get back into a position to purchase again. Not something I reccomend to anyone to go through. Certainly not voluntarily. If nothing else put the house up for sale, stay there and accept the fact you're not going to sell it for 125% of what you originally bought it for. Take the best offer, and then move on. Quote Link to comment Share on other sites More sharing options...
GRN96WS6 Posted January 30, 2012 Report Share Posted January 30, 2012 60 has to hurt, hopefully you like the house so its easier to swallow. I like my neighbors for the most part, and the house isnt too bad. What hurts more than anything is its pushing back my goals. Financially Im ahead of my goals. I had my plans laid out for a move to Dublin, but my wife lost her jobs, and the price of the house just kept dropping. Things could be worse so Im grateful... but it still doesnt feel good knowing 25 year old Brian is messing up stuff for 32 year old Brian. That guy is such an idiot!!! :lolguy: J/k I would have had to be psychic. I thought I did everything right. I picked the house that was 45k under what I was approved for. Shopped around, stayed in my budget, avoided balloon payments, put my kids in one of the best school districts... but somehow I still feel shafted. I also read up on strategic default (like Killjoy posted). It appears 1 out of 5 people that got a house around the time I did are likely to do that. 20% is a crazy high number! LOL not even close I don't HATE it but it is NOT my dream house. Luckily a hail storm jacked my metal siding and roof so that is new within the past 18 months but the inside while redone wasn't done right so I need to redo carpet, paint, bathrooms, and kitchen just to make it able to be sold or attractive to a potential renter. I'm figuring doing the work myself as much as possible will still run me 40K or so. It is in a development with neighbors closer than I'd like but I bought what I could afford and of the 60 homes I looked at this was the best deal at the time. I live around DC though so our market might recover faster then some areas. It does hurt and is one of the reasons I'm in Afghanistan as a contractor for 18 months so I could get rid of all debt but my home. I'll come home with only a mortgage and be able to hopefully knock it down some with a quickness so I can get out of it or at least use it as a rental to move into someplace else. I want to be like Tim 42 and own my home or at least have a SMALL payment on the second home or a vacation home. I hear you on it setting your goals back I'm there also but I'm still sucking it up and waiting it out, as I'm not ready to move right now anyway so it wouldn't make sense to take the loss right now. I hope within 2 years I'll be ahead and within 5 I'll either be out or using it as a rental. I'm also like you been through lay offs and etc so I'm more stingy with my money and invest more then most people my age so that I don't have to struggle in the future. Quote Link to comment Share on other sites More sharing options...
Bam Posted January 30, 2012 Report Share Posted January 30, 2012 Another thing to consider as I haven't seen it mentioned before....what about if this happens all over again? What then? Like what if the 'perceived' value you place on a new house you could purchase is really false and drops another $30k the year after you buy it. Food for thought. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Ok...Heres my Take because Im in a SImilar Situation right now....Ive been in my house for 10 years, and Ill be lucky to break even on it when I sell in the next few months as we are house shopping now. THe problem initially were the people who took loans that they couldnt afford, but now the problem is people, Like Brian, who CAN afford the home they're in, but are mad the market tanked, their property isnt worth what it was, and feel they should walk away. Way to Go Brian, Way to contribute to the downfall of the market even further. In essence, youre telling me personally to fuck off, and I dont like it. I am not gonna walk away, I bought a House I could afford and was a good deal 10 years ago, I added 25-30K into it, and it should have paid me back for these investments, until the bottom dropped out. Now I will be lucky to get what I originally payed for the place, in essence Im gonna lose $30K+ on this house. But this iis Life, and the market and it Sucks. In reality, your far from being able to even talk to a Bank about a Short sale as you are not at or near forclosure, and until you are, they wont even look at you as your not a risk of not paying. Its your Choice to do this, but if you do....I want to personally thank you for contribuitng to taking just that much more money out of the pockets of those of us that were intelligent with our finances.....Thanks again Brian.[/Quote] I like how you were a butthole without being a butthole. If I do it, you're welcome. If I don't you are not welcome. Quote Link to comment Share on other sites More sharing options...
Dr. Pomade Posted January 30, 2012 Report Share Posted January 30, 2012 Just came across this article, which discusses strategic defaults. I'm certain some material of the article has already been discussed (and someone may have actually posted this or an article like it - I didn't read the entire thread), but figured it might be a worthwhile read. http://finance.yahoo.com/news/what-happens-when-you-walk-away-from-your-home-.html Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 30, 2012 Report Share Posted January 30, 2012 Just came across this article, which discusses strategic defaults. I'm certain some material of the article has already been discussed (and someone may have actually posted this or an article like it - I didn't read the entire thread), but figured it might be a worthwhile read. http://finance.yahoo.com/news/what-happens-when-you-walk-away-from-your-home-.html Good read. IMO thought the couple in Arizona featured in it were fools for trying to balance two mortgages. No way in hell even years ago would I ever chance moving into a new home without having sold the old one. They should eat the $200k difference just for being stupid. Their $200 > Brian's $30k though. IMO they should have been forced into a chapter 11 and carried the negative equity over with them and had the court restructure their budget. Hell if anything the banks should extend the term of their mortgage to allow them to carry it. So they end up with a 50yr note; let their estate, insurance and surviving kin complete it if they die early. However, while they are alive, they should eat it, not the rest of us. People like them fuck the rest of the world and get away with it. Companies that assist in these strategic plays should also be killed with fire. They are just sleezy scum that stick it to the rest of the world and make a buck of doing so. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 30, 2012 Report Share Posted January 30, 2012 The strategic default companies arent sleezy. If you read the article, it talks about a contract being contract, and nothing more. Companies file bankruptcy and default because its better for them financially too. It has nothing to do with morals. If a corporation can do it, why can't a family. Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 30, 2012 Author Report Share Posted January 30, 2012 Good read. IMO thought the couple in Arizona featured in it were fools for trying to balance two mortgages. No way in hell even years ago would I ever chance moving into a new home without having sold the old one. They should eat the $200k difference just for being stupid. Their $200 > Brian's $30k though. IMO they should have been forced into a chapter 11 and carried the negative equity over with them and had the court restructure their budget. Hell if anything the banks should extend the term of their mortgage to allow them to carry it. So they end up with a 50yr note; let their estate, insurance and surviving kin complete it if they die early. However, while they are alive, they should eat it, not the rest of us. People like them fuck the rest of the world and get away with it. Companies that assist in these strategic plays should also be killed with fire. They are just sleezy scum that stick it to the rest of the world and make a buck of doing so. So question. If I've paid interest for 6-7 years, and the short sale is for $20k less than listed, don't they still make a small profit off of me? Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted January 30, 2012 Report Share Posted January 30, 2012 So question. If I've paid interest for 6-7 years, and the short sale for $20k less than listed, don't they still make a small profit off of me? Yes. However, one can argue that it depends on how much interest you've been paying over the last 6-7 years...and if your original bank still has the loan on it's books! If the bank sold your loan on the secondary market (as most major banks have), then your original loan with Fifth Third is technically on Wells Fargo's books as an example. The bank will have made money on the initial loan (did you pay closing costs? any points or down payment on the house? Escrow fees? billing/late charges?) as well as continually servicing the loan OR by selling it for a shorter-term gain, and freeing up the capital the bank had invested in your house to now make ANOTHER loan to someone else. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 30, 2012 Report Share Posted January 30, 2012 (edited) If a corporation can do it, why can't a family. Families can but there are two types Ch7 and Ch13 depending on the families income level. I would be willing to bet the family in the article wouldn't qualify for a Ch7 and IMO should eat the $200k they are trying to brush off. Edited January 31, 2012 by TTQ B4U Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted January 31, 2012 Author Report Share Posted January 31, 2012 I hate the way this is set up. My coworker stopped paying... was offered a 3.75 interest rate and some government heart program or something. I call and they say sorry, as a good paying customer we can't help you. I'm refinancing through another company on a 15 year. I'll make up for the loss with a lower interest rate. P.s. They told me to walk away and rent for 2 years. With my level of income I would be fine... this is from the management of the company that I'm paying Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 31, 2012 Report Share Posted January 31, 2012 I hate the way this is set up. My coworker stopped paying... was offered a 3.75 interest rate and some government heart program or something. I call and they say sorry, as a good paying customer we can't help you. I'm refinancing through another company on a 15 year. I'll make up for the loss with a lower interest rate. P.s. They told me to walk away and rent for 2 years. With my level of income I would be fine... this is from the management of the company that I'm paying I talked with my wife about this whole thing and she sees both sides. I understand better now the couple in Arizona in the article but still don't know their motivation or intent. To your point, Tamie said many times the mortgage companies she deals with have either don't know situation where they are dumb fucks or they don't care. Some will push back but as you noted, usually only to good paying people. She feels since the market took a shit that many workers are just biding time and taking the easy route. She's been a part of a few short-sales but overall her line of work is more people going belly up...that's just her turf though. What she swayed me on is the whole being angry at people who do it purposely. Her view, much to my previous posts, caused this mess and knew damn well loaning Joe Broke Dick 125% of the homes Inflated value that they were a part of appraising is all on them. So in essence, what the couple in AZ did is just payback for being mislead and manipulated. She feels no pity for the lenders. I now feel a little less spite against such practices....still bothers me. Perhaps because first hand we're not in that spot. Personally, I'd burn the fucking house down. Yes, I would. It makes for an interesting conversation as normally we don't talk about this stuff. Quote Link to comment Share on other sites More sharing options...
Patterson Posted January 31, 2012 Report Share Posted January 31, 2012 They get their money one way or another. They dont care about the customer. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 31, 2012 Report Share Posted January 31, 2012 (edited) They get their money one way or another. They dont care about the customer. I know. My wife and I bought our Virginia Beach house on a short sale through an attorney she knows. Bank had a choice, get no money from their current client who was filing bankruptcy but losing the house, take it back and sell it on the market and incur all related expenses or sell it to us who had cash upfront in hand from a sale we made on other property late last year. We needed to make a move or pay uncle Sam tax on our profits of said sale and the bank wanted out fast. We struck a deal and everyone won. The kicker is we ended up renting it back to the original owner and under his bankruptcy and have court ordered budget which includes our rental amount built into it for the next 4yrs on our 10yr note :gabe: That's win.:fuckyeah: I love my wife. Edited January 31, 2012 by TTQ B4U Quote Link to comment Share on other sites More sharing options...
coltboostin Posted January 31, 2012 Report Share Posted January 31, 2012 The story... - Buy a house 7 years ago in a good neighborhood for what seemed like an ok price. - Over the year taxes increase and the value of the home drops tremendously. - Square footage of the house is wrong as listed. When this is found the price drops even more. - With the value of the house dropping it would take 3-4 years of payments to break even. Literally throwing 4 years of money away on something that is unlikely to return a profit. - For what Im paying I could be in a better house. A house that if the value dropped I wouldnt mind. Not some stupid started home I got when my wife and I made less money. With the increases and drop in price its like paying 185k on a 140k home. - After talking to a few specialists they stated paying on a house like this is a waste of money with the way the market is now. The value in this neighborhood is unlikely to go back up as much as its dropped. - I called the mortgage company to look into a short sale or other options. After trying many different angles they are completely unwilling to work with us unless I stop paying them. The fact that we pay on time makes them unable to help us. Plus we already have the lowest interest rate they offer. - My father in law offered to put a house in his name if we had to take a credit hit. On average it takes about 2 years on a short sail before you can get a decent interest rate... but I dont know if I would be comfortable doing a rent to own from a family member. At the same time I would swallow my pride to put my family in a better situation. Do you stay and hope the value of the home increases? Stop paying and see if they will work with you (take a big hit on credit) Take some kind of legal action? The person said they are very likely not to approve a short sale for a loss that big. If they dont approve it do you just walk away and take the father in law up on his option? Take another option not listed. Ive been through every scenario possible with my wife. Im hoping someone that has possibly been through this before can chime in and shed some light. Paying them is no issue... but at the same time I got a house to get away from throwing my money away to renters. Now Im a renter in my own home. The responsible side of me makes it close to impossible to foreclose/shortsale. I feel it was my decision to buy this house and as little kid then I learned what not to do. On the flip side I hope the mortgage company can see how a good paying customer wouldnt be willing to hand them tens of thousands with a smile on their face. If you walk away, you cant be on ANY purchase for a specified amount of time- depending on the default and when the foreclosure process is started. Same goes for your wife if you are both on the MTG. So, your Dad would not be cosigning with you in your scenario-he would have to credit qualify on his own for a house as a second home. Quote Link to comment Share on other sites More sharing options...
coltboostin Posted January 31, 2012 Report Share Posted January 31, 2012 or sell it to us who had cash upfront in hand ................................................................. ................................ on our 10yr note : I love my wife. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 31, 2012 Report Share Posted January 31, 2012 The kicker is we ended up renting it back to the original owner . No kidding? I just picked up a short sale and had to sign papers out the yin yang stating that I didn't have any agreements with the previous owner and would not rent it out to them or anything. Edit: those papers were required by one of her banks taking the loss, not mine Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 31, 2012 Report Share Posted January 31, 2012 (edited) Very large equity/cash dump to avoid gains tax and a small note. Money was so cheap it doesn't make sense to pull it out of the market (even this market) to pay it off. Interest savings in our tax bracket and the deductions we are taking bring the net cost of borrowing down even more. No kidding? I just picked up a short sale and had to sign papers out the yin yang stating that I didn't have any agreements with the previous owner and would not rent it out to them or anything. Edit: those papers were required by one of her banks taking the loss, not mine I'd have to see your paperwork to see how specific the bank was in your deal. My wife and her friend (the other attorney) negotiated the contract with his lender. It's weak sauce and really just a formality anyway. I wouldn't ever sign an addendum that is strictly to prevent the previous owner from benefiting. I bought the house, his bank got their net minimum, his bank is paid by us and our lender....at that point they can fuck off. It's easily negotiable. Believe me, if you qualify and want the house, they will back down/lighten up on the wording. Our deal sounds complicated, but to hash through the details and lay it out our LLC Company bought the property, in turn rents it to us and then we in turn sublet it. Right on the line of deal his bank agreed to but not across it. It helps when you know the other attorney Bottom line is they just want paid and our lender made them whole. Our payments to our lender are auto deducted from an account which secured us a slightly better rate. It will be cold day in hell before anyone finds the paper trail let alone does anything about it. It's common for the banks themselves to rent back to the owner. Edited February 1, 2012 by TTQ B4U Quote Link to comment Share on other sites More sharing options...
coltboostin Posted February 1, 2012 Report Share Posted February 1, 2012 Very large equity/cash dump to avoid gains tax and a small note. Money was so cheap it doesn't make sense to pull it out of the market (even this market) to pay it off. Interest savings in our tax bracket and the deductions we are taking bring the net cost of borrowing down even more. . I understand what you did, and why. I just did not see how you purchased the house "cash", and then ended up with a 10 year note. A down payment on finaning is just that-not a "cash purchase". Formalities. Quote Link to comment Share on other sites More sharing options...
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