Reply to If you bought 2005-2007 and got hit, tell me your story, location and age

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[quote=Anonymous]We are older Gen X.  We sold our starter home and bought a new build McMansion in Laurel in 2006.  We were at the peak of prices.  We paid $719K for the house.  Section 1 of our neighborhood started selling in 1999 and Section 7 (the final section) sold out in 2009.  Our neighborhood had a lot of people that bought their homes with subprime lending vehicles.  Tons of interest-only, ARMs, etc.  Between 2006-2009, many of the ARMs started to adjust as scheduled and many of the interest only loans came due for refinancing and those buyers had no money to put into refinancing a new loan. 445 units in our neighborhood and over 150 of them foreclosed.  In 2011, due to all of the foreclosures, our house was worth about $380K.  Of our original $719K which we had put $150K down, and with our payments, we had a loan of a little under $500K left.  We should have been about 30% paid down and we were underwater by over $100K.  But, this was our forever home and the neighborhood has slowly clawed its way back.  After many people moved into the neighborhood on short sales and foreclosures, the prices increased steadily for 10 years.  We were about at the break even point when the pandemic hit and now our house is worth about $780K.  Only 10% over what we bought it for, but considering that it was down to about 50% 11 years ago, I'll take 110%.  We are not ready to sell (this was our forever home), but I will say that I was worried for years if the neighborhood would ever claw its way back to the prices we bought at peak in 2006.

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