All I hear is that real estate is "coming back", but all I see are "price reduced" homes.. With the reelection of Obama, I don't see it coming back

Asked by Mason, Schaumburg, IL Sun Jan 13, 2013

Is it worth it to continue to try and pay down my now underwater mortgage thanks to the disinegration of home values?

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Riccardo War…, Agent, Bolingbrook, IL
Mon Jan 14, 2013

Depends on what type of loan you have, you may be able to refinance now. If you are owned by Fannie or Freddie you can go over 100% loan to value. In some cases up to 125% or more. If you have an FHA loan, you can go even ire, possibly. Give me a call and we can go over your scenario.

Sean Cochran
Quality Mortgage Lending
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Bill Eckler, Agent, Venice, FL
Mon Jan 14, 2013

Wanting a full recovery immediately is indicators such as inventory, amount of time on the market, sale prices, new construction, sales, etc are determiners that experts are hanging their hats on when offering market opinion.

With this said, specific information on the above mentioned indicators will vary from one location to another. The result of which is varying rates of recovery in different locations.

An interview with an agent or two should clarify where you stant on a home viewed by you as being, "under water."

Whether or not it's worth continuing to pay down a mortgage that is "upside down" is an issue that only you can address. These are hard times but you do have options that may be helpful. To help buy time, you may want to consider investigating in a loan modification program from your lender as a possible option.

Good luck,

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Peter Mohyls…, Agent, Destin, FL
Mon Jan 14, 2013
A home is the biggest investment most families make in their lifetime. I did not make that statement up, it is used often when talking about real estate. Economic situations, buyer frenzy, etc made the market tank. If you have a property underwater, you need to evaluate it like any other investment decision. I don't think it makes sense to keep a bad investment in your portfolio. You do need to evaluate your options with the help of professional advice. Then make an informed decision about your house.
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Mason, , Schaumburg, IL
Mon Jan 14, 2013
Not looking to sell/buy. Have been in my house 10 years and will be in it another 10 years until my youngest is done with high school. Just frustrated with the economic direction our country is taking. I don't see home values appreciating at all in the next 10 years.
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Nancy Manis…, Agent, Schaumburg, IL
Mon Jan 14, 2013
Yes, if you can remain in your home and still afford it, continue to make your payments and protect your good credit. If it becomes a hardship for you, talk to your bank about a loan modification. Prices are stabilizing, activity is high and well priced homes in good condition are selling! Once the inventory of foreclosures and short sales is absorbed by buyers we will see home prices rise once again. Experts predict we will see a Sellers market with rising prices begin to reappear in 2014. If you can't afford to stay, talk to your Realtor and your mortgage company about doing a short-sale.
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Stewart Rami…, Agent, Grayslake, IL
Sun Jan 13, 2013
Hi Mason,
There are several things you can try; You can try to apply for a modification to reduce your mortgage payment. Sometimes, you may even be able to negotiate a principle reduction. However, both of these are very difficult. Another action you can try is to do is apply for a program called "Illinois' hardest hit" this program gifts money for a reduction in principle. Once again, a difficult process. Lastly, you ca do a short sale without missing payments and may be able to negotiate a settled loss amount and no direct hit to your credit. In some cases the bank will do a promissory note for some or all of the difference. I know that all of these sound daunting but they are the options. I hope this helps, feel free to contact me if you need more answers or details.
One thing is for sure that you should keep in mind, regardless of how the market is playing out, you paid what you paid. You're not stupid for buying at that price nor are you stupid for keeping it. We have had the luxury over the years of not losing very often in real estate so it is not something to feel bad or quilty about. For example when you buy a car, any electronic, RV, or many other items, including collectibles, one knows that they bought them because they liked them and were going to use them not because there is some guarantee that they will not lose value or that they will get there money back. It is the exact same thing with a house. Sometimes you get money back but not always.
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Scott Godzyk, Agent, Manchester, NH
Sun Jan 13, 2013
Obamas re-election sure has not helped. There are many variables though, forst it all depend son the area you live. Some areas are stable, some are seeing values increase and sadly some areas may still be declining. The amount of homes on the market is near half of what it was, the amount of buyers has stayed steady whoch sure is helping the market, The banks are slow to loan, with the new regulations out this week it wont help. The one fact is that valued will increase and the market wil be strong again one day.
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Tina Lam, Agent, San Jose, CA
Sun Jan 13, 2013
Yeah, you'll see the "price reduced" homes because those are the only ones still on the market. Homes that are priced right initially are selling within days.
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Tony Saviano, Agent, Hoffman Estates, IL
Sun Jan 13, 2013
It may be true that some of President Obama's policies may be in direct opposition to getting this economy churning and burning again. Don't forget one important fact.

The American people are a creative and resilient bunch. They have reacted to extreme conditions before and have come away with flying colors. As an example, in the 1980's, the interest rates hit 16% or more. We still managed to sell a lot of properties through assumable mortgages and contract or installment sales. The people that took advantage of the situation at that time ended up with a great investment and good equity.

We may never see the quick growth of value that we saw in the past but real estate should still be one of the best investments you can own.

Call me to take advantage of the current low prices and interest rates.

Tony Saviano
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