Yesterday's Wall Street Journal had an article about Fannie May and Freddie Mac experiencing vulnerability due to the mortgage/housing market. The article quoted an analyst as saying, "We are seeing unprecedented foreclosures and declines in home prices not seen since the Great Depression."
For those who are blessed with great equity in their homes and the ability to pay their mortgages, should they be selling their homes? Do very prominent real estate experts expect a major depression that would affect not only the housing market as well as jobs? If so, it seems the only way to somewhat insulate oneself from a housing disaster would be to own your home outright, have virtually no equity (thereby no financial loss), or sell and rent.
What about those of us who don't have subprime loans, can pay our mortgages (in a relative stable economy) and don't want to sell? What are some of the well-known financial advisers like Suze Orman and others like "Wall Street" saying?
2007-11-20 02:34:55 · 8 answers · asked by Bella 2 in Business & Finance ➔ Renting & Real Estate
I am sorry but I don't follow your line of reasoning.
You don't have a housing disaster if you can pay your mortgage. It doesn't matter what prominent real estate experts say. If you have equity, can afford your payment why on earth would you sell and rent?
Do you have any idea how many 'renters' are getting notices that the landlord is in foreclosure and those renters are SOL?
Don't apply whats going on in a segment of our economy to yourself when it does not apply to you. While your value may fluxuate due to the market.......you are in a position to ride it out if you can make your payment. Many investors are just sitting on the sidelines waiting and alot are hanging out at foreclosure sales. Its a time to buy not sell.
Turn off your TV. Your getting freaked into thinking about stupid moves when you have no reason to be freaked out.
Good Luck
OBA
2007-11-20 03:05:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on what the homeowners' situations are, really, and what they originally bought the house for. If they were one of these pseudo-investors thinking they could get a low interest rate loan for now and "flip" the house and make a ton of money before the rate went up, then they may want to get out as soon as possible. However, if they see stable income for now, and bought the home as a place to live with their families it may be better to keep paying the mortgage and hold on.
Even if they have no equity, they may be able to keep paying on the loan and even pay a little extra every month, in order to pay off the loan quicker. That might help them in the future, if they run into any difficulties. If they've been paying extra, they'll have more equity and less of a loan, so they may qualify for more options if they end up facing foreclosure.
The well-known advisers and politicians are mostly saying that everything is good, America rocks, the economy is strong, and the US is the greatest country in the world. Yes, I know, it's not very realistic and doesn't begin to represent the experiences of families losing their homes. But how else can you sell a book or get on TV if you don't appeal to nationalism?
2007-11-20 05:24:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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2016-07-19 13:49:07 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If you own a house and can pay the mortgage and the prospects of keeping your job are good, why not hang on to the house and continue paying for it? The market is already depressed, and there's a glut of houses for sale out there. The odds are that you won't get a good price for it.
If you're in good enough financial shape that you can afford to invest a bit, now is the time to start looking for investment or vacation property. If you want that little place near the beach, or a cottage up north, or some hunting or fishing property, why wait for prices to go up? There's people out there that want to sell, and would be grateful for you to take it off their hands.
2007-11-20 02:46:30 · answer #4 · answered by Ralfcoder 7 · 0⤊ 0⤋
If you look at wall street journal stories about market timing you will recognize that is what you are trying to do except in personal real estate instead of the stock market.
What most studies have decided is that even in the stock market (where buys and sales can be done in seconds rather than months) that market timing attempts usually cost you a lot of money rather than make you money. They say you always miss the bottom and miss the top.
I would suggest that you just relax and don't worry. I bet that would be the advice of any reputable adviser.
2007-11-20 03:42:45 · answer #5 · answered by glenn 7 · 0⤊ 0⤋
You should definitely NOT SELL. The prices are down and if you are comfortable, hang onto whatever you are living in, even if you find something better. You may want to leverage whatever equity you have in real estate to increase your holdings, either with a better home for yourself, or an income property in addition to where you live. This is a BUYER's market, so BUY.
2007-11-20 08:35:17 · answer #6 · answered by Larry F 2 · 0⤊ 0⤋
Why on earth would you consider selling if you can afford your mortgage and home ? If you are concerned that you're going to lose money on the home, that is entirely possible, but you can still live in it as long as you pay the mortgage payment.
If you sell to rent, you're STILL going to have to make a monthly payment in order to have a roof over your head.
2007-11-20 02:44:43 · answer #7 · answered by acermill 7 · 0⤊ 0⤋
Rent-To-Own Home : http://RentToOwnHome.uzaev.com/?LfjB
2016-07-11 16:50:02 · answer #8 · answered by ? 3 · 0⤊ 0⤋