As far as why we are in the boat we are in. You may thank the speculators that were in the Real Estate Market. Banks were lending money to easily, loan brokers making up numbers on buyers, companys relying on housing market boom and buyers gladly buying homes that they could not afford. Interest only loans with no money down to non commericial buyers are the culprits.

All this created a false demand aka the biggest scam ever pulled. I buy this house for 100 and in one week I can make 150. I buy the hoiuse for 150 and in one week I may sell it for 200. As long as a buyer keep buying the home and turning it over before the interest only loan resets everything is fine. This easy access to credit and money caused

-owners to buy multiple homes as investments to resell,
-developers increase in the building of new homes,
-home improvement stores opening more locations,
-appliance stores opening new stores,
-companies hiring more workers,
-taxes going up since values have gone up,
-cities allowing for more building permits creating added strain on water supplies which in turn creates a shortage (most blame rain fall levels however how much water is required to build new building then sustain those occupants,

Think about that when a new community or mall is built now you have a shortage and you have to pay more for less), etc... All this on speculation that the home values will continue to go up and level off.

If you want to blame someone on the current state of our economy now you know who may be at fault. No one in the white house can control what happens when it comes to this issue in real estate. If you think gas alone is causing our financial woes then you are missing the big picture. You may blame your state and local governments that spend our tax dollars.

Do you think it makes sense for you to pay $10,000 in taxes and your neighbor $3,000. The only difference is that you bought your house recently yet both are worth the same. The person paying 10k may not stimulate the econmy like the person who pays 3k. The person who pays 3k already has everything they need in their home but new home owner will want to update or change their home but are unable to as much as they can due to the amount of taxes they have to pay. If no one is shopping then the economy will slow down.

Everything mentioned above is just my observation on what I have seen 1st hand being a buyer.

 

i agree 100%

I bought my house 5 years ago for 225,000.,..... today it appraises for 225,000.... probably only a matter of time before the value starts to decrease.

 

paid $400k for mine and the County appraised it at $293k, however they are selling the same model brand new for $284k. So the real value is probably around $220k??

It's frustrating that I paid 400k for a 2 bedroom, 2 bath, 2 car garage townhouse and I can walk through the neighborhood and pick up a 3,000sqft home with a huge backyard that was built in 2006 for $275k......oh, and that person would have a payment of about $1,000 less than what I have. BS i tell ya

 

Whats terrible is that you are like me in that we purchased a home to live the American dream yet we had to pay a premium due to the speculators.

 

damn man, you lost 120,000 bucks.

i mean...

**** dude...



so.. what do you do from here? you cant sell it, aint no bank in the world gonna finance a buyer to buy it for 400k, unless you came in with 120k down payment, yer so ******* upside down that yer head is popping out of the 9th hole of Shin Yung China Golf Course.

so the only way to get out of it is to seriously trash your credit.

if it were me, thats what i would probably do. i dunno, what else, yer gonna have to pay somebody 120,000 for nothing.

i seriously feel that what happened to you is one step below armed robbery.



Tell ya what man, if i win the powerball ill buy you a 1969 Mach 1 in pristine condition to help take the sting out of yer situation.