ok why does this happen

[B65]

I sold my dream home 2 years ago, I bought it and spent a fortune on having to fix it up, we became so much in debt we had to sell it, the guy who bought it was a nice guy but he paid top dollar, we made nothing but left with a lot of debt. Found out yesterday he foreclosed on it, and the bank has it for sale, at half of what he paid and 100k less than what I paid in 2003 without it being fixed up! it is dirt cheap! why would the bank not offer it to him at that dirt cheap price and re do his loan? or would they? why would they rather have months of no mortgage payment, forclosure fees, and agent fees that offer it to him? my head cannot get around it..
it breaks my heat to see it at this price, if i could buy it back I would, If i had paid that I would never be in this situation now....
we are thinking of letting the one go we are in now after our discharge as it has around 120k negative equity and the payments are high, so they will sell it for nothing but never offer it us for the price they will get.. it is so weird...LOL

B

[chloe0724]

I understand where you are coming from. I think a lot of perople that are losing their homes are just walking away. They aren't aware the mortgage compaines may try to help. A lot of mortgage companies won't help at all. A close friend of mine has been trying to get her loan modified for the last 6 months to no avail. She is now condiering not paying the mortgage because that seems to be the only way any lenders will respond. It's a shame

[Doghouse]

So true. A friend of mine also tried to do a loan mod when his payments could not be sustained and his house was way under water. The bank would not budge. Since he was current on his payments they weren't going to do anything. He stopped paying for about four months and then they worked with him and eventually modified the loan.

[albacore44]

So true. A friend of mine also tried to do a loan mod when his payments could not be sustained and his house was way under water. The bank would not budge. Since he was current on his payments they weren't going to do anything. He stopped paying for about four months and then they worked with him and eventually modified the loan.

yes, Loan modifications are being made, but as you said, after you miss payments , and the mods are temporary fixes, not long term solutions.

A good long term solution is to write down principal to 80% home value, refi into an affordable rate, with government backing, then should the house appreciate in the future the loan company/government would get a portion of the profits/equity repaid at closing after the home is resold.

I live in an area where the whole tract of homes is $200-$500K negative equity, and peoiple are making decisions to walk away daily

[liz417]

The housing market in SoCal (as everywhere else I'm sure) is so bad, people are just up and moving. As I drive down the street, every third house looks like a foreclosure. Sad. I have a friend who bought her house at the height of the market and now her house in worth 1/2 of what she paid. There was a house on the next block that was For Sale (same floor plan) and she purchased it and "walked away" from her upside down house. I don't know what her plans are for her 1st house (probably BK, although she hasn't mentioned it), but THAT'S what people are doing...buy another (cheaper) house and walking away from the 1st house...

[Doghouse]

The housing market in SoCal (as everywhere else I'm sure) is so bad, people are just up and moving. As I drive down the street, every third house looks like a foreclosure. Sad. I have a friend who bought her house at the height of the market and now her house in worth 1/2 of what she paid. There was a house on the next block that was For Sale (same floor plan) and she purchased it and "walked away" from her upside down house. I don't know what her plans are for her 1st house (probably BK, although she hasn't mentioned it), but THAT'S what people are doing...buy another (cheaper) house and walking away from the 1st house...

Same going on here in NorCal. Three and a half years after I bought mine, it's down 49% (about 170K) from what I paid for it. I had friends suggest buying a new house (with same floorplan on my street at 1/2 off) and walking from the current one but I obviously don't have the funds or credit score to pull it off especially with the CC bills included.

BK will at least stop the bleeding.