We own our own home.
We paid $142,000 for it and it's now worth $169,000.
Our mortgage is $900 a month
Last year we took a home equity loan out ($30,000)
We put in air conditioning. Laminated 2 levels and built a patio, and the rest of the money was used just to live on, pay bills, etc.
Now we want to sell the house but we don't know if we can afford to.
Are we screwed?
2007-09-05 05:27:04 · 8 answers · asked by ? 5 in Business & Finance ➔ Renting & Real Estate
Are you screwed? Well the worst case scenario is that you have a house. While maybe not the house you really want, you are a long way from being screwed.
!st thing you want to check is what the local values are in the area. Try http://www.zillow.com for a free comp check. It's not the most reliable or up to date but it's a good starting point.
If that isn't any help give a local Realtor a call and let them do a "NO OBLIGATION" Market Analysis for you. Figure that what ever they recommend as the listing price your house will probably sell for about 7% less.
One spot of bad news however. If you were counting on the upgrades you made to add value, they didn't. It certianly makes your home more appealing, and in turn more markerable, but there will be no increase in value for those upgrades.
Good luck.
2007-09-05 05:40:00 · answer #1 · answered by loancareer 3 · 1⤊ 0⤋
Depends, my guess is you used all the equity in your home through either 100% financing, or use of the equity loan. If that is the case then yes because housing prices are depreciating, and will continue to for at least the next 12-18 months, sorry should say a correction, in which case you will be lucky to get what you owe on the mortgages. Please tell me they are not ARM's, and coming due for reevaluation? If so yes you are screwed, unless you have the income to handle the hundreds of dollars a month your payments will be going up. You list the money was used to do some upgrading and paying bills, then to live on. Hopefully the credit cards are all paid off, and to live on. Dangerous situation, as it shows you are having problems meeting the month to month bills. Hate to be so negative, but have seen and heard of this soo many times, and it is prevalent in todays market. Wish you luck.
2007-09-05 11:21:28 · answer #2 · answered by Pengy 7 · 1⤊ 0⤋
I would continue to live there as much as you probably don't want to, but until the elections take place the housing market is just not predicted to rise. I have a condo, and I want to sell but I really can't afford to do so. I have a renter in that has stuck it to me every which way. Now, I am playing catch up....I was living with a boyfriend, we split, now I am in a loophole, have to move with my mom while trying to get her out. I would sell just to eliviate some of my debt but I will loose my a-s-s right now if I sell with little or nothing. If you feel you have enough equity though to gain something try selling it via without a realtor I know in IL they take between 6 & 7% of the cost from the sell of the home. If you can figure a way to sell it out right you may break even. I know realtors advise against it but it may be your only way!
Best of luck to you!
2007-09-05 05:52:29 · answer #3 · answered by pattiof 4 · 1⤊ 0⤋
It appears you have an upside down mortgage situation - you owe more than you're worth. I am uncertain of the exact value of your improvements but you did appreciate in value. Possibly up over the $180K mark.
If you want to sell, find out what fees you will have to pay (including the realtors fees) and add them to your current mortgage balances. You'll have to sell for at least that much to cover all your expenses. It doesn't appear that you will have to much remaining equity after the sale.
2007-09-05 05:44:46 · answer #4 · answered by thinking-guru 4 · 1⤊ 0⤋
No, you are not screwed. Just keep on living there and paying on time till the market goes good again. Nowadays, no one is interested in buying a house or maybe there's no need of buying a house right now - so it will be slow on selling - I will wait a little bit more.
2007-09-05 05:46:54 · answer #5 · answered by earth angel 4 · 1⤊ 0⤋
Maybe not-it depends on the area. The good thing about your situation...the price range is usually a good one to draw the biggest number of people who want to buy a house. Some of them will be first time buyers, some investors but at any rate, you won't know for sure until you put it on the market-call the REALTOR and get moving. Good luck with your next stage!
2007-09-05 05:32:32 · answer #6 · answered by helprhome 5 · 1⤊ 0⤋
Whether you're screwed or not depends on how much equity you have in the house when add the loan back in. If you owe more than it's worth, you're stuck for a while.
2007-09-05 12:52:41 · answer #7 · answered by Bad Kitty! 7 · 1⤊ 0⤋
If you owe more than you can net if you sell, then you'd have to come up with the extra. Find out what your mortgage balance is, plus the HELOC, plus what you'd have for selling expenses like a realtor's commission. If you can sell it for more than that, then go for it if that's what you want to do.
If you had to borrow money to live on, doing things like building a patio probably wasn't the best idea.
2007-09-05 05:55:46 · answer #8 · answered by Judy 7 · 2⤊ 0⤋