If you bought a brand new house worth $675,000 and pay 10% as down payment?

Question

After a year the market value of that house went down at $150,000 How are you going to deal with it? You'll see the same model like your house being sell lower on what you bought yours.

Answer 1

It's called be up side down.

Need to weather the storm for the next 2 yrs and hopefully you'll be back in the black.

The other option is to walk away, foreclose, and try and redeem your self with a tarnished credit rating on another purchase.

A foreclosure stays with you for 7 yrs.

Good luck!

Answer 2

First thing is do not run out and sell, causing you to realize a loss on the sale just bcause somebody else was foolish. It is not an issue until you sell.

It is not going on all over, but in a number of markets. You just hunker down and hold on until the recession passes, and don't buy in the top 1% range again. There are far fewer buyers for that price range than a $250K range. The east and left er west coast markets usually are the most volitile. Nashville TN (my market) is fairly stable, and still a good market.

Newspaper hype goes a long way to aggravate the problem too, causing unnecessary panic among other things with irresponsible reporting out of context statements to sensationalize a story to sell newspapers (especially since subscribership and readership have declined over the last 10 years).

So we have an area that normally is 90-120 days of market time to sell a home. Then things start getting busy,and lo we start selling in days or sometime hours or even before we get a property in the MLS. Then things start to gravitate back to a "normal" 90-120 day market. In truth, are things really bad or are we just returning to a normal, sustainable market? You be the judge. Newspapers have abdicated truth in favor of sales. And they are useless as far as selling homes, they just add to teh expense. If newspaper ads were all it took to sell homes, the real estate profession would be out on its ear..

Answer 3

That's what's going on all over. . .That's what happens when you buy in an inflated market. If you planned to sell your house during this period, you will take a loss and have to make up any difference on your loan.

Answer 4

I would stop watching housing prices.

I paid what I paid. Make my payments and live my life.

There is someone who paid more than you. There is someone who paid less.

Don't let it eat you up. A home is a long term investment.

Besides what are your alternatives.......be sick & miserable about it...........stop making payments....throw raw eggs at the neighbor....sell for less than owed??? What's your alternative......be happy you live in a beautiful new home and understand that you are living in your investment.......goes up.....goes down.........goes back up eventually.

Real Estate is cyclical.....

Have a Margarita and go soak in your new jetted tub and forget about it. (that is unless you have a Neg Am Arm - in that case ......bring the tequilla bottle with ya - just kidding)

Answer 5

Keep making your payments until the market recovers... maybe 5 more years.

Answer 6

you remember this so next time you don't make the same error when every one is buying houses with only 10% down this will happen every time.i have seen it happen in 1982,1986,1993 with the market in my area