Home Loans page 39

What do you think of THE COUNTRY of TEXOARKLA?

College Loans?

I haven't been able to sell my home for 3 1/2 years?

Can I compare home loan rates across all banks in India?

Is there a website that will give me home loan rates across all banks in India?

What can I do about my credit?

First-time Home Buyer Question. Please Help?

My credit score is 640, husband's is 595... likelihood of getting approved for a home loan?

TX Mortgage Refinance $30000 Bad Credit?

I mean if I owed more on a car than it was worth, I'd still pay for it. This is a common thing, at least somewhat. Why is it different with a home?

You know, that is so funny you say that, because MOST if not ALL of us are usually upside down in our car loans the minute we drive off the lot! Do you see people here day after day lamenting that and saying they just want to give it back or stop paying? Of course not. Look, for people who bought at the height of the bubble, you paid too much. It's like Vegas: you took a gamble buying a property with financing that may have been creative to get you into it thinking there was no way this gravy train would die, and you could just refi and get some money out of our house because you would certainly have over 100k equity within a year! LOL Too many people gambled without really minding what the risk could be if it all fell apart or went the opposite direction that all the *experts* (realtors, loan brokers, bankers) were telling them. If you can still make your house payment or refi to a point where you can ... just sit tight. Otherwise, you will either have a foreclosure or short sale on your credit report, which is going to tank your score. Now, I know some here don't care about that..which almost reminds me of the mentality of killing things in a video game..they always come back to life... these people will have a rude awakening when in 3 years they want to go buy again, and are turned down or only offered a high interest rate.

It's belived that whenever the bottom is reached in the housing market, it could be many years before the home is at a value to resell it. With a car one is replaced within 5 yrs in most cases.

The difference with a lot of the people that are upside down on their home loans is that many of them are coming to a point where they have to refinance. IF they were in a 30 mortgage, no, it wouldn't matter one bit. Since many of these people took out 5 year Adjustable Rate Mortgages in 2002-2004, most of these loans are now "coming due" for refinancing. When they are going to the loan officer to refinance, they are being told that in order to refinance they need to put thousands and thousands of dollars down to keep the Loan To Value within range (usually 80-85%). For example, if you bought a house for $300,000 and put 20% down, your loan would have been an 80% LTV. When the value of the home went UP, these same people cashed out some of that money. Say the value went up to $400,000 then these people could have "taken" up to $320,000 of value out of the house. NOW, the home is only worth $250,000 and they owe $320,000. In order to refinance the loan, they have to come up with $120,000 just to meet the bank's standards. If they don't have the cash, they can't refinance, and then they lose their homes. That is the very abridged version of it. You are correct thought, just being upside down does not mean to quit paying - they are having problems with the loan maturing.

Some people feel that they are losing money by pay for something that is worth less in the market than what they paid for it. So if they have not much to lose (they made a small down payment) They will walk away form it. It is short term thinking because Real Estate will eventually recover, but the question is when. Are you willing or can you wait the 10 years it may take to break back even while still making the mortgage payments.