Thread: House dropped over 300,000.00 in price since I bought, HELP!!

Hello,

I am new in here and am really looking for some suggestions and help on how I can deal with my new problem..A couple of years ago I decided to go into Real Estate Investments.... I bought one in Southern California for a bit over $700,000.00, two years later, my house is now worth right around 400,000.00, i spoke ith the bank about my interest rate and the fact that my house today is not worth what it was then, their response was ..."it is what it is" and you sir are responsible for the entire amount of the loan, ("Like i didn't expect them to say that") I guess what I'm asking is, Is there anything or anyone I should talk to about this or am I just doomed?

This isn't the first time real estate values have fallen and it definitely won't be the last. About every 10 years or so the economy turns around and goes the other way.

As a real estate investor you have just learned that real estate is a long term proposition. Wait it out and you will make money on your investment. It happens every time.

You could try to do a short sale. You will need to prove that you cannot pay the mortgage because of a lack of a job. If this is a possibility I would search for a realtor that specializes in short sales.

Keep it for another 20 years. I'm pretty sure that in 2029, your home will worth about $1.5M or maybe more...
Congratulations. You will make a great profit on your investment...

Sadly this is the problem with the real estate investments of last few years.


people have stopped using the science of money, which says you cannot make an investment with borrowed money, because borrowed money costs a lot, and if the situation is not exactly to your liking ( investment does not give the return expected) it turns in a toxic asset in which borrowed money puts in poison.

so in reality, you should only invest money you can afford to lose.

Originally Posted by Greg

This isn't the first time real estate values have fallen and it definitely won't be the last. About every 10 years or so the economy turns around and goes the other way.

As a real estate investor you have just learned that real estate is a long term proposition. Wait it out and you will make money on your investment. It happens every time.

This already happened in Southern CA just over a decade ago and the Sub-Prim market helped over inflate home prices for a short spell. Now they are back to where they should have been.

The place to go is Making Home Affordable. It talks about loan modification and refinancing.

Avoid everybody else and do not sign any papers with anyone until after you have visited this government website. Sadly there are many scam artists out there preying on people.

Under the Making Home Affordable Act of 2009 there are several options available to homeowners in your situation. One such option is to seek a remodification of the loan. You do this by submitting financial documents and as well as letter stating why you are seeking a remodification of the loan. You can obtain the specifics for your lender on the lender’s website. Another option is to list the home for sale and look for a short sale buyer. The final option available is to walk away from the home by turning in the keys to the bank. This option hurts your credit but releases you from the financial obligation. Prior to making your decision it is best to consult with a real estate attorney to discuss all of your options.