Quote:
Originally Posted by blktour
So I know this is off topic but say you do buy a house for say, $155k and then it drops down about $30k. Can you get an adjustment? To pay less or what have you?
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The old (effective Nov '08) homeowners' assistance bill had time limits - you had to have bought your house between January 2005 and June 2007, IIRC. It was also voluntary, at the discretion of the mortgage company. And it was based on income - you couldn't qualify for a modification unless your mortgage payment was over 31% of your gross monthly income. It put the new principal of the loan at 90% of its currently appraised value. There were also strings attached - you had to split any profits when you sell with the FHA. I believe it was 100% to the FHA the first year, and a sliding scale for years after that - but it never went below 50%.
Obama's newer homeowner's assistance package is a joke. I can't believe he had the nerve to unveil the plan in Phoenix - because it is one of the worst-affected areas - yet it only helps homeowners whose currently appraised value is within 5% of their loan balance. Most of us in Phoenix who bought within the past three years have home values less than 50% of our loan. And that includes those of us who thought we were doing it right - I got a 6.4% fixed 30-year loan. I'm one of the "lucky" ones - so far, my house is still worth 62% of my loan balance.
Now - with all that being said, it's still up to the mortgage company. If they think it's in their best interest to modify the loan, they'll do that. If they think it's in their best interest to say, "Fuck you - you signed a contract," they'll do that.
If you've read all the posts on this thread, you'll notice that different areas of the country are suffering to different degrees when it comes to falling home prices. Where the bubble rose the highest, the fall is the worst. If you ask me, I don't think prices anywhere will drop below where they were in 2002 (with a few exceptions, I guess - like Detroit). If you can buy a house for what it would have cost in 2002, I'd say go for it. Home sales are public record - look at either your county assessor or county recorder web sites - it should list the date of sale and the price.