topic Re: Property Values in Mortgage Loans

Property Values

Anonymous — Wed, 08 Oct 2008 00:50:43 GMT

My home was appraised in April @ 345k and just recently it was guesstimated at being 300K. Is this possible? Do foreclosures and economy cause this? this is unreal and I can not get refinanced because of this.

Hearts

Re: Property Values

Lel — Wed, 08 Oct 2008 05:42:59 GMT

@Anonymous wrote:
@Anonymous home was appraised in April @ 345k and just recently it was guesstimated at being 300K. Is this possible? Do foreclosures and economy cause this? this is unreal and I can not get refinanced because of this.

Hearts

Yes, in this market environment this is possible, unfortunately. Many people are in similar situations where their property values have dropped to the point that refinancing is difficult to do.

Re: Property Values

Anonymous — Wed, 08 Oct 2008 12:29:21 GMT

Yep- $450K in 2006 to $350K now for me.

Good thing I only owe $95K on it.

Re: Property Values

ShanetheMortgageMan — Wed, 08 Oct 2008 16:01:42 GMT

@Anonymous wrote:
@Anonymous home was appraised in April @ 345k and just recently it was guesstimated at being 300K. Is this possible? Do foreclosures and economy cause this? this is unreal and I can not get refinanced because of this.

When there isn't as much demand as there is supply, what usually happens is the value of the product (homes) declines... this is what you are experiencing now. If you are looking to refinance because your rate is about to adjust, I'd recommend you get in touch with your mortgage lender and try to work out a loan modification where the rate is fixed in for a longer period of time (1 year, 5 years, the remaining term of the loan, etc.). If you are just looking for a lower rate, or take cash out, then you'd have to wait until home values go back up. It's tough to say when that would be, a month ago I'd estimate that would be sometime in 2009, but with the recent economic situation I might add another year or two to that estimate.

Re: Property Values

Anonymous — Wed, 08 Oct 2008 18:06:23 GMT

My house dropped 20k in value from June to September.

Re: Property Values

Anonymous — Wed, 08 Oct 2008 18:13:38 GMT

Take heart, Myhearts. Mine has gone down 200k between December 2006 and July 2008 (date of last appraisal). I am on north shore of LI, NY.

401(k) is -13.9% this year.

Re: Property Values

Anonymous — Wed, 08 Oct 2008 21:20:44 GMT

OMG! Cobra.. That is really horrible and to think that our homes are our most valuable asset.

What are we supposed to do now?

hearts

Re: Property Values

Anonymous — Thu, 09 Oct 2008 01:56:49 GMT

I guess we're all supposed to just sit tight for a couple of years.

We're in an ARM that was supposed to adjust this past August, but thankfully our mortgage company locked our rate voluntarily (we didn't even ask them to) - but as for how long, who knows?? And we wanted to refi next year and cash out to add on an extra bedroom. Guess my boys will have to share a room for a little while longer...

Oh, and I've been watching our 401(k)s accounts dwindle too - I've lost about 14.7% and DH has lost about 17.3%. YIKES! Good thing we won't be retiring for another 30 years or so.

Re: Property Values

Anonymous — Thu, 09 Oct 2008 02:36:23 GMT

I just purchased a house that sold in 06 for 587K and we just bought it for 315K with 18 K in concessions from the seller. Even since June, the value of it had dropped from 350 K down to the 315 mark. Now it has been kind of flat. It may drop a little more but I don;t see it dropping below say 280K and ten moving back up. I am already upgrading it myself for low cost (but good upgrades) to offset some of the declines that may come in the market over the next year or two.

I have no need to move for at least 10 years and have a fixed rate so I am good to go at this point, but this market has been a killer for a lot of dreams (good and bad ones)

Re: Property Values

Junejer — Fri, 10 Oct 2008 05:16:17 GMT

Myhearts wrote:
OMG! Cobra.. That is really horrible and to think that our homes are our most valuable asset.

What are we supposed to do now?

hearts

ETA: I had typed in something, but it didn't post for some reason.

Robert Kiyosaki says that our homes aren't assets, they are liabilities. An asset is defined as something that pays you. A liability is defined as something that eats you. As a banker, it is hard for me to redefine these things, but I am changing my mind about them. My house, as much as I love it, will eat me in hard times, and is therefore a liability, not an asset.

Message Edited by ByrdMan on 10-10-2008 12:16 AM

Re: Property Values

Anonymous — Thu, 09 Oct 2008 22:28:24 GMT

I am not surprised. My home was appraised at $300K a year ago, I just did a short sale for $160K. They said it was because 90 Percent of the homes in our area were foreclosed or short sale already.

Re: Property Values

gamegrrl — Fri, 11 Mar 2011 01:46:07 GMT

@Anonymous wrote:
I am not surprised. My home was appraised at $300K a year ago, I just did a short sale for $160K. They said it was because 90 Percent of the homes in our area were foreclosed or short sale already.

Exactly the same situation for me. While my valuation for PROPERTY TAXES doesn't include foreclosures (making it higher and increasing my taxes), a valuation done to procure a home equity loan DOES include foreclosures (making it so dismally low that after the shock wore off, I sat and cried for an hour).

Most of the properties selling in my zip code are forclosures or short sales, plus I live in an area of larger homes: I only have three bedrooms and most others here have at least four, with most having 6.