UPSIDE-DOWN? Poll

[rgbecker]

Poll question: UPSIDE-DOWN? Poll

On Npr yesterday afternoon, it was stated about 10% of Homeowners owed more on their house than it was worth. Is that possible? How about You?

I realize those with computers and time to use them are not a going to give a realistic view of the cross section of all America, but still I'm wondering how this recent downturn in housing pricing has affected DUers.

[NMDemDist2]

1. ooops I clicked the wrong button, i should have chosen #3 not #2

but only because of this forum, I saw the writing on the wall and sold in PHX in 2006 and with the equity paid cash for my acre and a trailer in NM

the person I sold the PHX house to is totally upside down now unfortunately

[abelenkpe]

2. Good job!

You are clearly very smart. I hope others will learn from your example. I am still in a rent controlled apartment being shut out of the market during this whole crazy run-up in prices. I recommended to a friend of mine at work to pay off his house in 2004 when he could. His avisor told him debt was preferable and to remain diversified. Since then he has lost his job (outsourced), his stocks have tanked and he is having trouble paying his mortgage. You know, that "good" debt. I really feel for him. He is 50 and has three small children. He did everything right according to the experts and now finds himself in a horrible situation. Other studios keep passing on him and all his experience in favor of kids out of school and outsourcing to India because they don't cost as much. It is so tragic. And being only 11 years younger than him it is pretty clear what the writing on the walls is if this trend continues. We need real substantial change in our society where we care and provide for the elderly, make room in the workplace for those with experience, and can provide good education and healthcare for our young. With the coming economic crisis it is the most vulnerable who suffer the most. I certainly hope democrats step up efforts to protect the people here in the near future.

[dixiegrrrrl]

3. The on;ly reason we are ahead in our house value

is that in late 2005 we sold in Ca. ( we could hear the warning bells loud and clear) and moved "back home" to a rural town, to much much cheaper housing,got a good deal on a great house, put a large enough down to avoid escrow, PMI, and get a very affordable payment on a 30 year mortgage.

What made this possible was a pre-retirement, pre-move 5 year plan to pay off all debt,( we both raised our FICO scores by doing that ) kept on driving 10 year old cars, saved every penny we could.

Our mortgage is thru Countrywide, btw...but a traditonal one, with good credit.
If we tried to do that in late 2007, we could not have qualified for the mortgage.
We were lucky that the plan worked, and that we could re-locate in time, and have nothing but mortgage debt to deal with.

Sometimes it is so hard to know when to take action, or when to trust your instincts, judgment, and perceptions.

[Captain Angry]

4. Option 4: Sold my house before the crash.

I probably shouldn't have been given a loan due to my age at the time, but I had an excellent job. When I saw that job getting ready to head to India without me, I sold my house and moved into an apartment.

If I'm lucky, I'll be finding a new job here in the next few months and will be a more valid poll voter. :-)