Cheryl Hampt…, Home Seller in Manassas Park, VA

Will the property prices move up any time soon? Manassas Park has taken some really bad hits. I bought at

Asked by Cheryl Hampton, Manassas Park, VA Sat Aug 23, 2008

$260,000 in November of 2006 and now the townhouses are selling for $125,000 at auction. People are just walking away from the properties because it is not worth saving. I put $30,000 in improvements to the property and am losing big time. Having to turn over to Mortgage Company rather than keep it.

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Do not listen to anyone that is telling you to "hold on" - you see it is the agents and the banks that drove this meltdown. Here is what you are going to do,

1) go and get as much credit as you can, then cash out (cash advances on all your cards)
2) stop paying your mortgage
3) get roommates and collect the rent
4) stop making your car payment
5) stop paying your utilities
6) in general just stop doing everything you've been doing

* after about a year or so, the utilities, banks, etc ... will start to react with liens, collections, etc ... at this point you appease by saying you will pay, payment plan, blah blah blah.

* you should be up at least 20 - 50k at this point which will cover the 30k you put out of pocket into the property.

* if the bank takes your car, let them, it probably wasn't worth what you paid for it, go buy a cheap affordable car using some of the cash you have saved up.

* just keep living your life without paying a single bill and don't freak out, it's part of the plan

* eventually you will be evicted, but the courts are so overwhelmed, it may take up to 2 years after you stop paying your mortgage.

* once you see the eviction posting on your door (or getting close to it) go and file for bankruptcy.

* when the sheriff comes to your door, show him the bankruptcy papers and you can now live for another few months rent free and hopefully collecting rent.

so by now it's probably 2012 and you are starting from scratch. your home is maybe worth 165k and you have saved close to 100k by not paying any bills and driving a cheap car that you paid for in cash. It will take 7 years to come out of bankruptcy.

by 2019 your home may or may not be worth the 260k you paid for it, but you will have come away at least 100k better off.
0 votes Thank Flag Link Tue Feb 23, 2010
Cheryl, although what I'm going to tell you wasn't even possible back when you first posted this, many lenders are now open to the possibility of one renegotiating the terms of one's loan (including readjusting the principal in some cases)--even for borrowers in good standing.

Besides, the loss in value is only on paper for now. As long as you don't sell now--or anytime soon--and are able to ride out this downturn, then you'll see the prices rise again. None of this matters if you plan to live where you are permanently. The losses would only become real if you were to sell your place in this market.

So, you have some options.
0 votes Thank Flag Link Fri Nov 21, 2008
Hi Cheryl,
You should have sold in November 2006 for 260K. Good Luck
0 votes Thank Flag Link Thu Nov 20, 2008
No don't expect prices to move up or increase by 100% over what they are today anytime soon.

The market is in free fall with property values dropping daily.

The best you can hope for is the prices to stabilize.

Then after a few years or remaining stable they will slowly climb back up from the bottom.

Would you pay $260,000 for a property when you know three doors down just sold for $125,000???
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0 votes Thank Flag Link Thu Nov 20, 2008
Real Estate is one of the best investments around specially if you hold on to it for a long period of time, unless you own another home do not consider giving up this property, you have not lost anything, you still have a home to live in and to keep you warn. Remember just as when you had equity in your home you had not made any money until you sell it. All you have right now is unrealized losses that are not interfering with your way of life, if you can still afford and are able to pay your mortgage on time keep it, do not look at how much your property is worth right now.
If you are one of those overnight buy and sell type of investor I would have to say be wise and make adjustments to your current situation and continue with your search of better and more profitable investment in this current real estate market, there is plenty out there. Good luck.
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0 votes Thank Flag Link Mon Sep 8, 2008
If you hang onto your property, you will eventually see recovery. Prince William is already considered a stabilizing market. Prices are down and are expected to stay down for awhile, but homeownership is a long term investment. If you are in financial distress, there are options. I'd be glad to talk with you about what some might be. Don't walk away from your home, you've got too much invested.
0 votes Thank Flag Link Sat Aug 30, 2008
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