I bought a house in 2006 and put in $100k as a down payment. At this point I dont know what to do with my

Asked by Sofia, Riverside, CA Wed Jun 25, 2008

property since my property taxes doubled and cannot afford to keep making the monthly payments. If wanted to refinance, can I get my actual money I put down even if the value of the house is less than what I bought it for. How can I get that money back? or is lost?

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NonRealtor, , 23456
Tue Jul 8, 2008
Does this sound familiar?

Have no fear! Now is a great time to buy and it won't stay that way for long. I love working with first-time homebuyers and would be happy to send you some references of other first timers that I have helped. So stop building wealth for someone else and put your money to work for you! Give me a call and we can set up a consultation. Look forward to hearing from you!

Good Luck Sofia
1 vote
Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Wed Jun 25, 2008
Short answer:

Your down payment cash was converted to home equity, and it is lost.

Homeowners with equity are the first bearers of risk in a declining market. As long as your mortgage is "performing" (ie payments are on time) the lender doesn't care about the value loss... unless you are unfortunate to have accepted a negative amortization loan, commonly known as "Option ARMs". These come with clauses that trigger full amortization repayment if the loan balance hits a certain percentage over your home's value - ususally between 115% and 125% of the current value.

A refinance is based upon the appraised value of your home today based upon recent nearby sales for a similar home. It is quite likely that you have too little equity to squeeze in a cash out refinance to convert some of your remaining equity back to cash. Furthermore, your mortgage would increase in size with a corresponding increase in payment - a poor decision to make if the property tax increase has made your present payment unaffordable.

Linda and Sean offer excellent suggestions which will may help keep your mortgage affordable - and incidentally cost very little compare to a refinance.
1 vote
michellelong…, , Corona, CA
Fri Oct 11, 2013
This is a good question for your real estate agent.
0 votes
Karel Costa-…, Agent, Odessa, FL
Fri Sep 27, 2013
The market fluctuates up and down as you can now see. Unfortunately for many owners that purchased in 2005 and 2006, their home's value has dropped a bit. The money used for your down payment will be lost if the house has depreciated. You may want to consider selling the home and see how much exactly you'll be able to recuperate. I wish you the best.

Karel Costa-Armas
0 votes
millermre, Home Buyer, Riverside, CA
Sun Jun 9, 2013
Call Siringoringo Law Firm at 909-294-2423. They will be able to save your home, & refinance
There is a government program extended until the rest of this year, and to get a home modification,

and you will be able to stay in your home.

If you wait until the property values go up again, they you can sell for a profit.

This program has worked for a friend of mine, and I am sure they will be able to help you also.

Good luck,

0 votes
, ,
Fri Nov 18, 2011
It’s a simple process. Complete a 3 page application
No upfront application fee. Home must be worth at least $200,000
If approved:
1. You will sell your home for what you owe. Then lease it back at a monthly payment 40-60% lower than your current mortgage payment. No need to move, stay in your home.
2. After the lease period ends, you can purchase your home at 90% of the current market value with owner financing!
Leave a message at 763-276-1338 http://www.houseleaseback.com
0 votes
stop foreclo…, , San Francisco, CA
Wed Jul 29, 2009
Sofia If You decide to walk away search out a buyer and look for another home to Purchase.

I have sat down with owners who have put out all they had into 1 home.

The bright side is someone will enter into a home that is fixed up.

Bad side is owner is out of that money, and will probably end up with credit damage.

If you think your lender did something fraudulant.

Hire an attorney to do a forensic loan audit(review your original NOTE line for line)

If the attorney can find something to go after your lender you may have something. (long process but)

Ive heard an investor got a free house. The lender did not want to go to court.

My Partner and I have successfully closed out 7 short sales in the last couple of months in San Jose,

Malpitas, Fairfield and Suisun CA


Currently Today is July 29 2009

We have 3 properties in Escrow and are expecting to close in less than 20 days.

Currently we are looking for short sales to purchase in the bay area 500k and up.

We have been buying them, fixing them up and re-selling them-

(EVEN TO VA BUYERS) We will repair the home
so the home will get Funded by the end buyers Lender.


If the home is not repaired the home will sit their until you have a conventional buyer or a ALL Cash Buyer. Purchase the property

We have a proven track record in Cali.

Call me or visit


Negotiating the Bay Area.
0 votes
Javier L. Ca…, , Riverside, CA
Tue Jul 28, 2009
First, do not give any payment up front for a loan modification. It is illegal for a real estate agent to take money up front and they can not even do a loan modification unless they are an attorney or have an attorney on staff with there company. 2nd, the county of riverside has already reevaluated property values and are at this moment informing home owners of the reassessed values. I did nothing at all and received my notice last week. I paid over 500k for my home in 2006 and the reassessed value according to the county is 319k. If you haven't received your notice call them and ask for it. As for your 100k, I'm sorry to say it is gone with the only hope of recovering it is to wait for home values to rise which will take several years at a minimum. If you want out of the property then a short sale or deed in lieu of foreclosure or foreclosure are your only way out. If you would like a more detailed explanation feel free to contact me. I would like to repeat my earlier comment. Do not give your money to any one promising something that they can not guarantee, I have had too many clients ask me to sell their home as a short sale because they could not get the loan modification that they were promised. Good Luck!
Web Reference:  http://www.homes4-sale.net
0 votes
Hannah Flieg…, Agent, Larkspur, CA
Sun Jul 19, 2009
Hi Sofia,

You might need a short sale it sounds like. You can go rent for a while and get back into homeownership down the road in a home with a mortgage you can afford. You might need to look at credit repair after your short sale or foreclosue. Good luck!
0 votes
Jack W Dopp, , Beaumont, CA
Sun Jul 19, 2009
I live in Beaumont and met with the Riverside Co. Tax Assessor in this area in April. He, then, stated that all Riv Co properties are being reviewed to reduce the assessment as called for by this economy. If you don't pay your taxes []If your old enough you can defer paying-like I do at 82] it will be five years till you are notified about a tax sale on your property-and then about a year before the sale in February.

I represent one of the firms who will do a forensic analysis of your loan-for a charge. I suggest that before you contact me you see the FAIR HOUSING COUNCIL OF RIVERSIDE CO. 3933 Mission Ave [at Market St-across from the Greyhound Bus Depot] Their phone # is 951-682-6581. You can see them online at http://www.fairhousing.net They are FHA approved and there is no charge

I'm old and not a licensed agent but I started buying in 1973 after the first foreclosure seminar in the area [By Charles Shubin] and I have been insturmental in buying 220 properties at severe discounts. I've been an appraisor, a sales trustee for foreclosures etc [just not smart enough to be a Broker] so I find it easy to evaluate new trends. Newest: 95% of all loans 2002-2006 are void! Grampa Jack
0 votes
Get-smart, , Durham, NC
Sat May 23, 2009
If you can't afford to keep your house and the advice mentioned doesn't work, then you should contact someone that can make you a fast offer on your house if you have a foreclosure somewhere in the picture.
0 votes
Cocopuff, , 70123
Sat May 23, 2009
Have to agree with the doctor. If your property has lost value you need to sit down with your assessor. As far a a refi if the LTV isn't there then it's not there. Of course you need to examine whatever source is telling you your home value is short.. If you applied for a refi and the appraisal came up short go over it with a fine tooth comb and remember it just an opinion.
0 votes
Dr Mortgage, , marin/sanfrancisco
Tue Jul 8, 2008
Based on recent sales in your area if they are less than the value of your home go to the assessor's office and request that they lower your taxes..
0 votes
Lisa Camberos…, Agent, SANTA ANA, CA
Wed Jul 2, 2008
Well, let me start with, is this loan a fixed or adjustable.. Let me try to work out a Home Modification Loan or get a Short Sale Approved at 60% less than sales price value and approved for a sale. Call me I am a Licensed Real Estate Agent with many ideas to assist and help you. Have you requeted a forebearance????or
0 votes
Ayc Group, , Suisun City, CA
Thu Jun 26, 2008
vist http://.www.stopmfo.com for free info
0 votes
LA Lending, , Baton Rouge, LA
Wed Jun 25, 2008
First, I would contact the office that sets property taxes for your area. Are they aware of the decrease in your home value? Your property taxes should be directly related to the value of your home -- if your home value has really decreased you might be able to request a re-evaluation of the property taxes, or sign up for a homestead exemption / tax relief program that you might not be aware of.

Your mortgage company will not return any downpayment that was made during the purchase of the home. The only way to access equity is to cash out refinance or secure a line of credit on the property -- but both transactions would be based on the current value of the home (not the value when you purchased).
0 votes
Sean Giorgia…, , 92553
Wed Jun 25, 2008
Ask the County to review your property taxes. You might get some relief there. Next, call your lender and ask for a loan modification. They may be able to reduce your interest rate and/or change your terms.

If you still can't afford your payment, consider renting your house out. You may not get enough in rent to cover your payment, but any shortfall is easier to abosrb than losing your house ... and your $100K.

I've posted several answers already on Trulia:
* http://www.trulia.com/voices/Foreclosure/Me_and_my_husband_h…
* http://www.trulia.com/voices/Foreclosure/I_have_a_rental_pro…
* http://www.trulia.com/voices/Foreclosure/When_does_a_foreclo…
* http://www.trulia.com/voices/Agent2Agent/How_does_a_homeowne…

Thanks for the opportunity to answer your question. You can contact me directly at 951-571-9229 or sean.giorgianni@gmail.com
Web Reference:  http://frclsrtv.com
0 votes
Linda Collins, Agent, Wellington, FL
Wed Jun 25, 2008
I suggest that you call your lender and see if you can work out a acceptable mortgage payment with the higher taxes. Many lenders in today market are working with the seller to help.
0 votes
Michael Barr…, Agent, Irvine, CA
Wed Jun 25, 2008
Hi there Sofia. Unfortunately a Refi might not be that helpful to you.
I can help you bu putting you in touch with a professional who can answer these questions for you

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes
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