Quote:
Originally Posted by DebbieL
He has negative equity in his home. It is worth FAR less than what he owes on it. That is the whole reason he wants to foreclose.
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Negative equity simply means he owes more than it's currently valued at, correct? Assuming the housing market rebounds (which realistically, it will over time), it could likely go back to around the $275k-$300k he mentioned.
I guess what I meant to ask is "how much have you paid toward your home?" You said you bought it for $315k, and currently owe $280k. So you've paid $35k toward principle plus
(??) in interest? All I'm saying is that if you hold on and don't freak out like apparently many neighbors have, your home's value should eventually go back up. If this is a home you want to keep for a long time (perhaps the rest of your life?), why let current market conditions scare you away?
In my eyes, I just see this as very similar to the people who are jumping ship on the stock market, selling off stocks for less risky investments, or taking it out of the market entirely, even in their 401k's and IRA's! If you plan to keep this house for a long time, would be happy/satisfied in doing that, there's no reason so freak out and abandon ship.