Most homeowners who purchased their homes from 2000 to 2006 over-paid. I was a victim of over-paying for my home. I bought at the peak of the housing market boom in 2006 and now find that my home is now worth over $100,000 less than what I paid for it. I made a clear and rational decision to buy the home back in 2006 and signed the dotted line for the mortgage thinking that a home will always retain its equity. Well we all know I was very wrong in this assumption!! My house will not regain its equity for a good 10+ years so what am I to do if I need or want to sell? Many homeowners in my situation are considering defaulting on their mortgage loans because this is aparantly the only way they will get any relief. I don't condone it at all, but what are people like me to do? Why are the people who didn't make good decisions getting all the help while I have to suck it up?
I believe our economy depends on people fulfilling their contractual obligations, but I feel I am being punished while others who bought more house than they can afford on one salary are now getting their loan principle lowered and given instant equity. I won't see equity in my home for many, many, years........all for what? Doing the right thing?
For more information, please contact me at info@buytampafl.com.
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Greetings! I too feel you pain! However, I bought my home in '94 and paid a reasonable amount at that time... but a few years ago, as I had equity in the home, I did withdraw equity only to update the home, new roof, update kitchen and baths, as these were all elements that I was instructed would be a benefit to me "if" the time came that I wanted to sell my home. During this process, the broker was trying to "sell me" on the many different programs that were out there AND for me to take more than I needed out of the house. I stood my ground, took only what was needed to put back into the house and got a fixed rate loan. At that time, I still had a considerable amount of equity in the house. Now, I am in a position to relocate and can't sell the home even though it was featured on HGTV! We didn't go above our means to afford that loan at that time, however, with the rising cost of everything else to survive, groceries, electric, insurances, etc.... it's getting rough! It's unfair while there are people who didn't jump on the band wagon to buy more house than what they could afford but invested in what they had, they won't get any help....
I definitely agree with you...the price of everything else just to live including the hefty mortgage is rough. If you have lost equity in your house, it will be many years before you get it back (if you ever do). You are in a much better position than most people because you have owned your home for 14 yrs. We will have to make a difficult decision when we are forced to sell and will just have to live with the lost money.