my house i bought for 269,000 but now worth 230,000
2007-07-03 18:00:17 · 9 answers · asked by bapele 1 in Business & Finance ➔ Renting & Real Estate
What happens? You have negative equity and look like a sucker that got taken to the cleaners when you bought it.
2007-07-03 18:08:07 · answer #1 · answered by Chad 5 · 0⤊ 1⤋
This depends on two things, first, what you actually owe on the house, and secondly, whether you plan to stay there.
If you owe 230,000 or less, then you're fine, and you could sell it if you wished and only lose out on the cost of realtor fees.
What you have to take into account is why there was such a drop in the value of your house in the first place, and whether that issue might reverse itself in coming years. If that is possible, then you might well want to hold out until it redeems its original value again and perhaps even a little extra.
If you owe more than 230,000 and try to sell the house now, you will indeed be in hock for the difference between the value and what you owe, plus the cost of realtors fees.
2007-07-04 01:16:42 · answer #2 · answered by KED 4 · 0⤊ 0⤋
If you sell or foreclose on the property you will owe the bank the difference between the loan amount and the sale price. In your case if you sold for 230,000 you would have to pay the bank 39,000 at closing or your account would go straight to collections. Most likely the fast track to bankruptcy because of the amount due.
2007-07-04 01:04:13 · answer #3 · answered by Lily 7 · 0⤊ 1⤋
Nothing, unless the principle balance in your loan is OVER $230,000.
If it is, you have negative equity, and if you needed to sell your home, a buyer would have to be willing to pay the higher price (unlikely) or you would have to bring money to closing.
Real estate, is not guaranteed, to increase in value.
2007-07-04 08:17:06 · answer #4 · answered by Expert8675309 7 · 1⤊ 0⤋
If you are selling it now, you'll lose money, BUT if you are not planning to sell, do not worry about it because the prices will go up again (not tomorrow, but in about 3-4 years your house will be worth over $300,000)
Real estate is a long term investment. Yes, when the market is "hot" you can make money by "flipping," but in general, it's a long term investment.
And before "the experts" start screaming here, can anybody show me one house, which is worth less now than it was 20 years ago?
2007-07-04 01:28:39 · answer #5 · answered by Anonymous · 1⤊ 1⤋
You just lost $39,000. You will need to cash out the difference with your mortgage company when you sell. You could question the appraisal, most cities have a procedure for doing this. If all properties in your area have gone down in value then you might be looking at a loss.
2007-07-04 10:12:54 · answer #6 · answered by lynn 2 · 0⤊ 1⤋
Did you feel anything when you bent over?
Something happen that changed the prices, what? something in the neighborhood? a filling station on the corner, a change in the zoning? something?
Did they allow people to put horses in their yards, the zoning changed, go to the courthouse, the codes division or the building division. Whatever they call it where you are. They should be able to help you with some of the questions.
Get together with your neighbors and find out if theirs was devalued also. If so, somethings going on. Find out the facts and file a complaint with the zoning board or the city...County boards and get a meeting going to find out the facts or your going to pay in the end.
2007-07-04 09:16:18 · answer #7 · answered by cowboydoc 7 · 0⤊ 2⤋
You lost equity, that's all. Unless you want to sell or refinance, it shouldn't matter. The upside is that you should be able to contest your property tax value if you're still being taxed at the $269k value.
Good luck!
2007-07-04 01:54:18 · answer #8 · answered by Anonymous · 0⤊ 0⤋
yours and thousands of others out there. the only things you can do is keep it for a long time or take a loss.
2007-07-04 01:05:14 · answer #9 · answered by pooh 6 · 0⤊ 0⤋