Foreclosure in San Jose>Question Details

Bryan Ware, Home Seller in San Jose, CA

look what people living beyond means have done to me!!!

Asked by Bryan Ware, San Jose, CA Fri Feb 20, 2009

Ive owned mine for 20yrs paid 125,000, last yr at this time houses were selling for 650,000 plus!!! refinanced 2 times in 20yrs, so now i owe about 550,000 , and of yesterday its worth 309,000, im 241,000 underwater and dropping at a rate of 33,000 a mth!!!!! PRETTY SOON IT WILL BE WORTH LESS THAN I PAID FOR IT 20 YRS AGO? SO THEN WHAT????????????????????? weres my HELP

Help the community by answering this question:


No one forced you to refinance twice for approx 1/2 million dollars on a fluid commodity. (Equity)
What people who lived beyond their means have done to you? Who spent the money? You borrowed money because YOU thought your property would pay it back for you. Guess what? YOU were wrong. If YOU listened or followed bad advice or YOU made a bad decision, how is that someone elses fault? You gambled, You lost......Your original investment is still worth over twice what you paid. Wish my stock was ,wish my car was, oh wait, sometimes things lose value, guess I better not borrow against them.....
6 votes Thank Flag Link Fri Feb 20, 2009
Homes and salaries in California are so over inflated it's ridiculous. They didn't drop in value, the market corrected itself to the true value. I mean, come on your state is how many billion in debt? There is no reason a piece of real estate should jump 500+% in a 20 year stretch, not without such elastic and artificial demand. Why you would choose to be one of the people that would borrow beyond the value of an asset is beyond me. Sure, you can manage to make the payments - but the only difference between you and the people that left these foreclosures out there is that you still have a home, and are therefor less of a major idiot.

That's OK though, your backwards state helped elect the greatest man who will turn our country into the largest welfare nation on the planet.

Thanks, I can't wait until California falls into the Pacific.
3 votes Thank Flag Link Fri Feb 20, 2009
If you had not refied twice, you would be in a great position. Do you still have all the things you bought with the refi money? I have clients who bought boats, jet ski's, $60,000 SUV's, etc with their money. In essence, they traded their homes for these things.
3 votes Thank Flag Link Fri Feb 20, 2009
This is what happens to people that used their house as a piggy bank. They take the money out and now hope to get help. I know others who own their house out right. Value went to $550,000, they paid $203,000 and now it is down to$360,000. The diference is they didn't take any money out. They have no payments to worry about and can retire without worrying if they will lose their house.
I know others that were proud of the fact that they neven leave equity in their house. They borrowed every cent to use for investing in stocks. We all know where they are now. No home left and not much money.
3 votes Thank Flag Link Fri Feb 20, 2009
It is unfortunate that you think other people have put you in this situation. Your home is still worth 265k more than you paid for it 20 years ago. Probably not a good idea to refinance a home 2 times when you never know where the market is taking you. :(
2 votes Thank Flag Link Fri Feb 20, 2009
Bryan... if you could sell your home for $309,000 today.

You already TOOK $325,000 in equity out of the home... (remember the two times you refinanced, and too cash out?)... so in effect you'd be making $634,000 for your home if you sold today.

The fact that you've already spent your "cash out" isn't the fault of the economy, or of those who lived beyond their means (which appears to include you).

You've got no beef.
1 vote Thank Flag Link Fri Apr 10, 2009
Alan May, Real Estate Pro in 60201
Hello Bryan, there is plenty of blame to go around for the mess we in. And, yes those "people who lived beyond their means" certain had a big role in it.

But, remember, that part of the reason why your house appreciated so much in the past few years is because of those "people who lived beyond their means", which allowed you to refinance and obtain that additional equity. In essense, those same people who "benefited" you, are now "hurting" you. You did take advantage of that boom, but as in every boom there is a bust.

So sorry for your situation, but the truth is we can't live under the same expectations from years before. That's why everytime I hear "now, now, now" or "buy, buy, buy", I take a deep breath and assess my own situation. Bottom line, listen to others advise, but look out for your own interest in the end. Because, if we don't, this will just repeat itself in a few years.

Hope that helps.
0 votes Thank Flag Link Fri Apr 10, 2009
NonRealtor, You have always been one of my favorite members to follow. You are always to the point and in all honestly one of the most accurate voices I've seen in the forum. I wish you the best.....
0 votes Thank Flag Link Fri Apr 10, 2009
Sorry, NO PITY for you. YOU were living beyond your means, which actually made MY property value take a nose dive. You CHOSE to refi twice, and have the nice toys, remolded kitchen, vacations, whatever, from those refis. Just enjoy the benefits/toys from your refis, while I will look at my non-remolded kitchen, old cars, etc, and look forward to having a paid-off home in the near future. It's all a trade off.
0 votes Thank Flag Link Fri Apr 10, 2009
It sounds like you may be living beyond your means and you're responsible. Hang in there until it's paid off. Good Luck
0 votes Thank Flag Link Wed Apr 8, 2009
Looks like it wasn't such a good idea to borrow against your property. What did you do with the money? Your personal business I don't need to know, however, I hope the equity you took out was invested wisely. I am in the same boat. Homes like mine, in my neighborhood were selling for $750k in 2006, now a foreclosure just went up for sale across the street for $499k! An added problem to the foreclosure crisis is that some people have the mentality to stop making their payment just because I owe more than maybe my house is worth! ? NOT! As long as we can keep making our payments, we still have a place to live (rent isn't much cheaper) and we hope and pray the market goes back up. I've lived in the Bay Area all my life, I am confident it will go back up. Maybe not to the inflated level that it was, but up it will. The banks were too relaxed with loans during the boom and too many people were buying homes they could not afford (or did not want to afford) they weren't committed homeowners. There are others who kept borrowing against older owned properties to buy more properties to "build wealth" and now those second and third homes are going to foreclosure because they can no longer afford all the adjustable payments. I think the FEDS should abolish adjustable rate mortgages anyways, that's another part of the problem. There were also some real estate agents and loan officers running around encouraging people to buy over their heads just to get a commission. There is no ONE BLAME for this mess, it's just simply A MESS for MANY reasons. I hope Bryan that you are able to continue to make your payments and keep your home. Boulder Creek is a beautiful place to live and some place where I would love to retire ....... some day but not anytime soon. (I don't have enough equity in my house to make a move !!)
0 votes Thank Flag Link Wed Apr 8, 2009

Makes me crazy too. I don't believe in rewarding recklessness, greed and carelessness, which I believe is what we are doing with this stimulus bill. Now that it is passed, we can only hope that it is has some successin stopping foreclosures and vote those legislators who agreed to it out of office.

Web Reference:
0 votes Thank Flag Link Sat Feb 21, 2009
I think KC is a little Jealous. California is a wonderful place to live. I have been to Harrisburg and he can keep it. I agree with his statement that the market just corrected itself. Prices are probably where they should be. As for the rancor directed towards us, that's, like, your opinion man. If he is upset with the election, he should direct his venom towards Vermont, Florida, Minnesota, etc. California was going to vote Deomcrat no matter what. It's the other states that gave President Obama the victory.
0 votes Thank Flag Link Sat Feb 21, 2009
Sorry Bryan, I guess we all are touchy on this subject. I was brought up to save money, pay my bills and don't expect anyone to give you a hand out. I know some that a crying now because they took it all. I look at foreclosures and short sales every day where they have owned their houses for 10 to 20 years and they have nothing. They spent it and now can't make the payments. I am glad you are O.K. and again, Sorry we all jumped down your throat.
0 votes Thank Flag Link Fri Feb 20, 2009
And yes i still have the home and my retirement and my paid for cars and my 2nd home that I rent and everything else because i am resopnsible, and I make aall my payments aand my credit score is 822, people please read i was trying to make a point not ask for a bail out
0 votes Thank Flag Link Fri Feb 20, 2009
0 votes Thank Flag Link Fri Feb 20, 2009
Hi Bryan,

I may not have a popular opinion, but I will share my thoughts with you. I believe we are blessed to live in a society where anything is possible. Our capitalist and democratic system is what brought my great grandparents to this wonderful country (legally). Our system is not perfect as it is run by people, but iI do believe it is one of the best models in the world. The downside to our economic system is that it is cyclical. They are periods of propsperity and down times. I was born and raised in Massachusetts and owned two homes while living there. Both homes at one point in time, were worth less than what I paid for them. To be able to refinance and take advantage of a lower rate, I needed to pay down my mortgage significantly as the property values had deteriorated. In the end, it was the right decision. The local market rebounded and I still had my house and equity. Hang on, things will turn around and you will be sitting on a great deal of equity. The climate is very frustrating as your asset being devalued by the greed of some. If you can, ride it out. You have to pay to live somewhere, so keep paying to live in your home, which in the end will benefit you.

Idealogically, I may not agree with the bailout and rewarding those who were careless and reckless. However, there may be some upside to all of us. Once the foreclosures are under control, we will likely see an increase in home values.

To your success,
Web Reference:
0 votes Thank Flag Link Fri Feb 20, 2009
my cash flow is 135000yr and steady, no cc bills no car payments Im fine I make my payments and to the persons statement below I could afford to refi to upgrade home , Unlike those that couldnt afford to buy to begin with, they have taken a perfectly good area of housing and destroyed the values by foreclosing... and the lenders that gave these loans and knew that they were bad shoud be shot
0 votes Thank Flag Link Fri Feb 20, 2009
Hello Byran,

I know exactly how you feel. Many of my clients have felt the exact same way. What they have found is that in many cases they can speak with their lender and try to work out an arrangement in which their mortgage payments are more affordable.

Experience shows that everybody's situation is different, and while you have outlined a scenario that almost every homeowner is facing right now, the big variable is what your specific financial situation is. What I do, as a Certified Pre-Foreclosure Specialist (CPFS), is I sit down with my clients and have a strategy session to determine what the best course of action is, based on their unique situation.

I understand you are frustrated with the housing crisis, the economy, the lending practices of the past several years, home values, and the uncertainty of the future. It appears that things are being done by the government in the form of this week's housing rescue plan, the stimulus bill, the TARP funds, etc., to try and help homeowners just like you. I certainly hope some of these actions will help folks in situations like yours.

If you would like to take advantage of my consultation services in determining what options you may have, I would be delighted to have a strategy session with you, too.

Please feel free to contact me at your convenience.

All my best,
Bart Marchioni
0 votes Thank Flag Link Fri Feb 20, 2009
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