Reply to What I don't get: When people complain that they are drowning because their house is underwater

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]But....can you still afford the payment?  That's the question.  You still have to live somewhere.  If you stay long enough, you will pay the fucker off.  So I don't buy the "OMG, I will never have any equity EVER!" argument, ESPECIALLY not in Northern Virginia.  People are constantly like "OMG, my house lost 50K!"  Meanwhile, 50K is less than 10% of their house value.  [/quote]

Since the market has crashed and the economy is in the Johnny Crapper, its not hard to understand that between 2006 and now, everything being the same (which it isn't) people on average are making less income. Thus if they could barely afford their house they can easily tip into not affording the house. From 2006 to 2009 home prices in NOVA have decreased by more than 50K (think 100-150K) AND in that same time frame property taxes have increased, adding more to that bottom line.

IF you lose your job and need to leave you either risk a short sale on your record, cough up 100K immediately, or rent out the house. However, the rent price = to your mortgage no one will pay to rent your house, so you'd have to rent for less than the mortgage and still pick up the tab for whatever is left AND pay for any repairs. Does that make sense? It's a HUGE money hole.[/quote]

What you are saying makes perfect sense to me!! that IS us. Approx  6 years ago, my neighbors sold their house for $425,000. Not long after that, the market began to tank. I have sat and watched it go down down down. Right now in our neighborhood for a comparable house, IF you are lucky, houses are selling for $175,000-200,000. more than $200k difference. We owe almost $300k. And we need to make a move to care for aging parents, therefore if we let the house *go* we are going to lost almsot $100k.  If i can get out of here breaking even I would be happy. As for renting, you are right. IN order to rent the house, I need to upgrade some stuff, which will cost $$$. Then we MIGHT get lucky enough to get $1500-1600 a month. BUT we currently pay $2050 a month plus taxes twice a year equaling $3k+  [/quote]

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