Thursday, September 22, 2011
For well over a year I have been pointing out on this blog, that to continue to pay mortgage rates from 2005-8 in the face of condo prices at NCC being 50% of what you paid for them was foolish.
Orman continued: “People who are 20 percent or more underwater should ask the bank for a short sale, or selling the house for market value, even if it is less than what is owed . . . If the bank won't work with you stop making payments and save that money until the bank forecloses. . . Of course, you should walk away if the bank isn't willing to help you”
==================== From 6/19/11 ===================
Prices here will never get back to the 2006-7 level
Some owners rent them out or try to. They are in competition with the Developers 56 unsold units which are priced as low income housing and will rent first. Even if you do rent it out you won't make enough rental income to equal your mortgage payments each month. Every month you will be in the hole. This is called deficit financing and when the government does it, they just print more money. When you do it you will find it to be a short term solution that will go on until the market recovers or you run out of savings to make up the difference (guess which is going to happen first).
Keep in mind that there are many more foreclosures to come at NCC and your pricing will always be in competition with these. There is no light at the end of this tunnel. The 'old' owners who purchased at list price, or close to it, will be replaced by a new crop of owners who come in at the much lower foreclosure prices.
Nautilus Cove isn't going away, it is just going to be owned by a new crop of people who paid a lot less for their condos than we did.