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I bought a house in Hawaiian Paradise Park in 2005. Buying that house has become the biggest mistake of my life. It is now worth about 50% less than what I paid for it. (with no bottom or way out in sight) With more economic problems to come, It is possible that it may be 20 years before it returns to its 2005 value. I can't be the only person with a total boat anchor house in Hawaii. Other than walking away from the house, I was wondering what other people are doing to cope with years of huge (relative to property value) mortgage payments. Any people here with loan modification experience? I really need help...
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Hey buddy... don't feel alone. We have a house in Chicago we had to rent because we could not sell it and a house in the SF East Bay that has not yet sold (on the market since August with two deals that fell through during escrow)and the only bright spot about paying three very large house payments is THE ONE IN HAWAII that we just moved into. Everyone in the country that has bought real estate in the last several years is in the same boat. Hang on little tomato, things will eventually turn around. I seriously hope it is not going to take 20 years. My hope remains in the new administration.
Aloha au i Hawai`i,
devany
Devany Vickery-Davidson
East Bay Potters
www.eastbaypotters.com
www.myhawaiianhome.blogspot.com
www.travelingfork.blogspot.com
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RG - if you first entered the housing market in 2005, then you bought at the highest the US housing market has been.... if you also SOLD a house in 2005, anywhere in the US, you sold at one of the highest prices, so that would even things out....
If your mortgage is higher than you can afford, and you have not lost a job or wages since 2005, then shame on your lender (& you) for for allowing you to buy something that you could not afford.... if you have had unexpected loss of wages since qualifying for your mortgage, you may be able to request some temp bridging relief from your mortgage co.... most do not offer much relief to buyers remorse type situations.... (asset portfolio loss alone generally does not qualify for a mortgage relief (even if you are living on interest from assets... there must be an unforeseen loss of income....
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Unless you have lost income, I don't see the problem... or did you buy the home on the speculation that you could sell it in a year or so and double your money?
Just about every home in Hawaii has doped in value 25% or more and I have met few people that have a "Home" complain... I have met some that have a "House" complain... But then they expected to sit on the house for a year then sell it and make a 100k profit.
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I do not believe that America is better than everybody else...
America "IS" everybody else.
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I do not believe that America is better than everybody else...
America "IS" everybody else.
The Wilder Side Of Hawaii
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It also depends on how much you put down. Did you buy the house to live in or as an investment? If it was an investment, only, well welcome to the business world and remember it's not only you that lost some leverage in the last year, it's like you and 85% of the rest of the country.
If you bought your home to live in and, as the poster above mentioned, you're making your paymets etc.. then relax and enjoy Hawaii. If you want to leave then yes you may have a problem if you have a ton of your money tied up in your home. I seriously doubt if it will take 20 years to see this turn around. You only loose if you sell right now.
What really amazes me is not your particular post but that there are hundreds of thousands of people such as yourself that bought homes, stocks etc.. and never considered the thought of values going down whether it was stocks, futures or real estate.
Blessings,
dave
"It doesn't mean that much to me.. to mean that much to you." Neil Young
Blessings,
dave
"It doesn't mean that much to me.. to mean that much to you." Neil Young
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Just don't call it a "bubble". There is no bubble according to one of our distinquished posters.
http://punaweb.org/Forum/topic.asp?TOPIC_ID=7457&whichpage=2
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We are here for the long haul, so not so concerned about it. However, our house in Arizona is not selling and well, you know the story...it's happening everywhere.[B)]
Carrie Rojo
"Every area of trouble gives out a ray of hope; and the one unchangeable certainty is that nothing is certain or unchangeable."
-- John Fitzgerald Kennedy
Carrie Rojo
"Even the smallest person can change the course of the future..." Galadriel LOTR
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quote:
Originally posted by Carey
If your mortgage is higher than you can afford, and you have not lost a job or wages since 2005, then shame on your lender (& you) for for allowing you to buy something that you could not afford....
Very well said Carey, all the people in "trouble" now either bought something they couldn't afford, or/and used their properties as an ATM machine.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
OK, I disagree, all the blame kind of upsets me. I bought in 2007 and the health of my partner changed, making it unaffordable. We had every desire to make the place our home. Things happen to people that cause them to have to move even though they didn't anticipate it. Life is unpredictable.
Furthermore, people SHOULD be able to move, even homeowners, and a lot of people in this country want to move right now; it is just stuck.
I have heard this is a good time for loan modification if you have an income to support the lower payments and cannot afford your current payments due to something that changed. Assets do not replace income as qualification though.
Under the homeowner's relief act that was passed, you have to agree to sign away the equity in your house should you sell it any time soon, which is tough on people who put down conventional down payments.
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If you have a legitimate issue... layoff, or lost income in some way that is not in your control, go talk to the bank, they would prefer you to keep your house. But if you can make the payments and just can't buy the new car, or go on that 3 month vacation, the bank may not cut you any slack.
I would not expect a bank to do much more than help with interest, I have read online that some bank are cutting principle, but I don't see how they can do that much.
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I do not believe that America is better than everybody else...
America "IS" everybody else.
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I do not believe that America is better than everybody else...
America "IS" everybody else.
The Wilder Side Of Hawaii
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