Comments on: Negative Equity: The Elephant Under The Rug http://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/ Phoenix real estate | Search Phoenix Homes for sale | Real Estate Blog Wed, 17 Mar 2010 02:10:04 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Real Estatehttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-64721 Real Estate Wed, 03 Feb 2010 06:01:00 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-64721 The government can radically turn things upside down. They are the big bad wolf of the world. The government can radically turn things upside down. They are the big bad wolf of the world.

]]> By: Brad Officer - Waterfront Homes Jacksonvillehttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60971 Brad Officer - Waterfront Homes Jacksonville Mon, 30 Nov 2009 13:01:16 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60971 I've been surprised at how many people are doing anything imaginable to hold onto a home severely under water. They are stressed, their personal life has become a mess, their home life is a disaster. All this to save a home to keep up appearances? It could take 10+ years of living this way to get back to even!?!?The sooner an owner of a severely under water home can see their home as a liability, the sooner they can make the business decision to cut ties and move on with life. I’ve been surprised at how many people are doing anything imaginable to hold onto a home severely under water. They are stressed, their personal life has become a mess, their home life is a disaster. All this to save a home to keep up appearances? It could take 10+ years of living this way to get back to even!?!?

The sooner an owner of a severely under water home can see their home as a liability, the sooner they can make the business decision to cut ties and move on with life.

]]> By: ErickMcGhttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60743 ErickMcG Mon, 23 Nov 2009 23:06:57 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60743 What I find disturbing are those that try to equate making a difficult business decision such as walking away from a hopelessly underwater loan with some kind of grevious moral failing. Things like "do the right thing, work out payments" and so forth. A bad business position is just that - business, and that's why remedies such as foreclosure and bankruptcy exist to begin with.<br><br>Erick<br>------<br><A HREF="http://www.contractor-city.com/sufo.html" rel="nofollow">subcontractor agreements</A> What I find disturbing are those that try to equate making a difficult business decision such as walking away from a hopelessly underwater loan with some kind of grevious moral failing. Things like “do the right thing, work out payments” and so forth. A bad business position is just that – business, and that's why remedies such as foreclosure and bankruptcy exist to begin with.

Erick
——
subcontractor agreements

]]> By: justinmchoodhttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60716 justinmchood Mon, 23 Nov 2009 04:50:26 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60716 Excellent point -- before you walk away, be sure to check your state laws! In some states (Colorado for example) the lender can go after the borrower for any shortfall... which puts an entirely different situation into play.<br><br>So be aware of your state laws! Excellent point — before you walk away, be sure to check your state laws! In some states (Colorado for example) the lender can go after the borrower for any shortfall… which puts an entirely different situation into play.

So be aware of your state laws!

]]> By: Russhttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60707 Russ Sun, 22 Nov 2009 01:37:03 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60707 Anyone significantly underwater in a non-recourse state like Arizona should probably just go ahead and walk away. After the largest housing bubble in American history, bubble price highs will not return nominally for a long time, and adjusted for inflation, will probably never return. <br><br>If you had asked me what to do in 2005-2006, I would have said sell any bubbly RE and rent a modest house in the same area (what I did). Now, same advice, except the side benefit is a damaged credit score instead of a large savings account balance. With Arizona's anti-deficiency laws, no legal judgments will haunt you and the social judgments have largely evaporated.<br><br>Some might ask why. Because walking away/shredding your credit is the only way to fix the mistake of overpaying for/over-borrowing on a house. A life event is likely going to occur that requires a sale of the underwater house long before it gains six figures in value. Might as start the credit healing now. Anyone significantly underwater in a non-recourse state like Arizona should probably just go ahead and walk away. After the largest housing bubble in American history, bubble price highs will not return nominally for a long time, and adjusted for inflation, will probably never return.

If you had asked me what to do in 2005-2006, I would have said sell any bubbly RE and rent a modest house in the same area (what I did). Now, same advice, except the side benefit is a damaged credit score instead of a large savings account balance. With Arizona's anti-deficiency laws, no legal judgments will haunt you and the social judgments have largely evaporated.

Some might ask why. Because walking away/shredding your credit is the only way to fix the mistake of overpaying for/over-borrowing on a house. A life event is likely going to occur that requires a sale of the underwater house long before it gains six figures in value. Might as start the credit healing now.

]]> By: justinmchoodhttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60693 justinmchood Sat, 21 Nov 2009 02:51:34 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60693 Agree. In my opinion, there are no easy and clear decisions for this kind of situation. Agree. In my opinion, there are no easy and clear decisions for this kind of situation.

]]> By: Stephenhttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60690 Stephen Fri, 20 Nov 2009 22:23:35 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60690 They did have a good idea to fix the mess. Allowing judges to modify principal balances. Cramdowns. They did have a good idea to fix the mess. Allowing judges to modify principal balances. Cramdowns.

]]> By: Cary NC Homeshttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60688 Cary NC Homes Fri, 20 Nov 2009 21:56:43 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60688 Justin,<br><br>I believe that the people that say such a decision is "easy and clear" are likely thinking in the short term. Family to feed now? Check. Can't make payments now? Check. Big problem now? Check. Why not foreclose and rent a place so you can survive in a "better" position in the short-term.<br><br>I think the current climate simply makes it more difficult for many to think long term. Justin,

I believe that the people that say such a decision is “easy and clear” are likely thinking in the short term. Family to feed now? Check. Can't make payments now? Check. Big problem now? Check. Why not foreclose and rent a place so you can survive in a “better” position in the short-term.

I think the current climate simply makes it more difficult for many to think long term.

]]> By: Gold priceshttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60683 Gold prices Fri, 20 Nov 2009 12:43:49 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60683 Government is coming up with bad policies, which leads to downfall of real estate rather then a help. Today's situation is high demand but mortgage rate is all time low. Also, inventory is too low in comparison to demand, may be this thing can work for increase in rates of properties. But nobody is sure of this too. Government is coming up with bad policies, which leads to downfall of real estate rather then a help. Today's situation is high demand but mortgage rate is all time low. Also, inventory is too low in comparison to demand, may be this thing can work for increase in rates of properties. But nobody is sure of this too.

]]> By: solar systems powerhttp://www.phoenixrealestateguy.com/negative-equity-the-elephant-under-the-rug/#comment-60676 solar systems power Fri, 20 Nov 2009 03:48:53 +0000 http://www.phoenixrealestateguy.com/?p=3305#comment-60676 You truly make it look so simple with your presentation, but I find this matter to be really something which I think I would never understand. It seems too rarified and very broad for me. I am looking forward for your next post; I will try to get the flow of it. You truly make it look so simple with your presentation, but I find this matter to be really something which I think I would never understand. It seems too rarified and very broad for me. I am looking forward for your next post; I will try to get the flow of it.

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