Dan Blather, Home Buyer in Ithaca, NY

South Euclid: any hope, or will prices keep on falling?

Asked by Dan Blather, Ithaca, NY Tue Aug 5, 2014

I own a house in South Euclid - formerly owner-occupied (by me, of course), but since 2008, I've been an "accidental landlord". I no longer live in the Cleveland metro.

After 10 years of owning the house, the loan-to-value ratio ratio of my mortgage is about 100%. A HARP refi won't lower my mortgage payments, thanks to PMI. (The original mortgage was through Third Federal, which has lender-paid PMI.) So, basically, I'm stuck with an albatross of a house that's worth the same as my mortgage balance. Even six years after the crash, I'd lose money if I tried to sell it.

My question to the experts: while it the rest of the Cleveland metro appears to be bouncing back, it seems like home prices in South Euclid are still falling. Is there any hope? FWIW, the house is near Mayfield Road, close to the Lyndhurst city line.

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Hi Dan,

I can definitely understand where you are coming from, there are so many homeowners in the same situation as you and feel stuck with a home that no longer has the same value. Yes, the market is getting better and there is definitely hope however it would be hard to tell if it will continue to get better or worse at this point. There is still a lot of distressed properties in the area and that is something that takes time to even out. The good thing right now is that people are buying, and south Euclid is HOT right now. I would suggest either paying for a professional appraisal or have a realtor come out and do a full assessment of your home and go over your options. Your home may be worth more than you think as there are a lot of things to consider when determining value. If the value is still underwater, you may save more money in the long run with a short sale and/or died in lieu, depending on your situation. I would also recommend speaking with your account or tax professional as well, there are some options to help with the tax liability of that option,again depending on your situation. Renting the property out is smart and at least the home is paying for itself ( I hope) however waiting on the market to get better will keep you hanging for some time as there is no real stern answer to that question. If you have any other questions, please feel free to email me directly at genitasmith@kw.com. Thanks and Good luck!
1 vote Thank Flag Link Sun Aug 17, 2014
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