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* I just posted this story on the veto session live blog, but then thought it might make for a good question…
A new report shows 46.2 percent of single-family homeowners in the Chicago metropolitan area in the third quarter had negative equity, meaning homeowners owed more on their mortgages than their homes were worth. That represents an increase from 32.9 percent a year earlier, according to the report from Zillow Inc.
It also is up from 42.2 percent in the second quarter.
The report showed home values dropped 9 percent from the third quarter of 2010 and dipped 1.1 percent from the second quarter.
Home values have fallen 37.4 percent since their peak in July 2006 and are now back to the level they were in December 2000, according to Zillow.
* The Question: Is your house currently worth less than what you owe on your mortgage? Take the poll and then explain your answer in comments, please.
posted by Rich Miller
Tuesday, Nov 8, 11 @ 12:16 pm
Sorry, comments are closed at this time.
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Been in the house a while….
Comment by OneMan Tuesday, Nov 8, 11 @ 12:19 pm
Only because I have been there 15 years and didn’t go crazy adding on to it, lucky too since my so lost her job 2.5 years ago and has not found full time employment since. Because of that, we are not even trying to refinance, just paying the bills and holding tight…
Comment by Rudykzooti Tuesday, Nov 8, 11 @ 12:22 pm
Bought in 2001, so it’s basically back to that value. Around 2006, the assessor was claiming the fair market value had appreciated by $140k in five years — didn’t believe it then, and it was the tip of the bubble. With a ten percent down payment and ten years of payments, I have some positive equity.
Comment by Anonymous Tuesday, Nov 8, 11 @ 12:22 pm
No, I’m in good shape. Been there 22 years on a 30-fixed, so my balance was pretty whittled down anyway. Property values are on the rise again in a few suburbs, including mine.
Comment by wordslinger Tuesday, Nov 8, 11 @ 12:22 pm
The Wife & I were tight when we bought (and assumed the mortgage on) our little townhouse in 1980 - but the 3 houses since had downpayments of 1/3, 1/3 and lastly 2/3 of purchase price.
Borrowing the max for a house bigger than you need is foolish.
Comment by titan Tuesday, Nov 8, 11 @ 12:22 pm
Been in the house since 2001 and refinanced to a 15 year fixed a couple of years later. We put down at least 20% back in the day so now we are sitting pretty good. Should be paid off in about 5 years.
Comment by Stones Tuesday, Nov 8, 11 @ 12:26 pm
Bought my house in 2004. Yeah, it was bubbly, but I was renting and I really wanted a house. Probably paid too much. Have been able to whittle it down, but a house was on the market last year in my neighborhood for $100K below my purchase price. I almost fainted when I saw that listing. My house is a bit nicer, but I’m not sure if it’s $100K nicer. Still, I don’t really want to move, so I’m not panicking.
Comment by Rich Miller Tuesday, Nov 8, 11 @ 12:31 pm
On the cusp. Doing needed maintenance and won’t get that back. Also can’t sell it for what needed in current market, but on paper not under-water. More like treading water and hoping to avoid any rough seas.
Comment by D.P. Gumby Tuesday, Nov 8, 11 @ 12:31 pm
I rent. Which is looking more and more like a smart move.
I did go look at a condo for $40,000 a couple of weeks ago. The bank or the previous owner stripped everything out. I could pay cash for the condo, then shell out for things like sinks and cabinets and appliances and the floor in the kitchen. I’m guessing it had been some kind of high end tile.
Comment by Cheryl44 Tuesday, Nov 8, 11 @ 12:33 pm
No, I bought I house that I could afford and didn’t over-mortgage the place. I guess realistically I don’t know what the current value is but it’ll be paid off in a bit over 7 years.
Comment by Kevin Highland Tuesday, Nov 8, 11 @ 12:35 pm
I live in a manufactured home community that is for 55 and over. The values have dropped by 50%. Part of the reason is that our lot rents have doubled since mom moved in 7 years ago. They are now $600 per month on top of the home loan. Even without the housing crisis, I dobut we could sell it with the rents anticipated to jump by $30/year over the next 5 years. We see more and more homes that are vacant in our community. It is a major rip-off and had we known that it would continue to go up so much, there is no way we would have bought there.
Comment by The KQ Tuesday, Nov 8, 11 @ 12:36 pm
Paid in Full.
Comment by Cincinnatus Tuesday, Nov 8, 11 @ 12:37 pm
I bought a two-flat in 2003 and I’ve had a tenant paying half the mortgage ever since. Refinanced two years ago and the appraisal was very good, well above water.
I remember when it was appraised back in 2003, I think the appraiser simply drove past the place and wrote down a number. I’d been looking for a while then, and two-flats were escalating in price so fast it was hard to get a bid in before someone scooped it up.
The new appraiser spent two hours measuring everything, checking everything and doing considerable research on comparables. I think the mortgage people learned some lessons, because now they’re doing things the right way.
I’m also fortunate that there haven’t been many foreclosures in my neighborhood. That really affects your home’s value, whether you realize it or not.
But now I need a bigger place, so I’m either going to have to kick out the tenant and convert the building, or sell when the market stinks. We’re trying to save money to buy a new place while still hanging onto the 2-flat if we can find another tenant. So all in all, I’m pretty lucky.
Comment by 47th Ward Tuesday, Nov 8, 11 @ 12:41 pm
No, but we bought a house that was far less expensive than what we were told we could afford based on our incomes. It amazes and horrifies me to see the monthly payments some people take on.
Comment by girlawyer Tuesday, Nov 8, 11 @ 12:41 pm
I bought my house fifteen years ago and it’s value has dropped, but not below what I bought it at. My niece, who bought a $750,000 house, now has a house that’s worth about $500,000 in a neighborhood with a generous supply of expensive and empty homes. She and her husband are going to stick it out. Thank goodness, his job is secure.
Comment by Aldyth Tuesday, Nov 8, 11 @ 12:44 pm
OK for now. Property values still decreasing. More vacant properties in the neighborhoods.
Actually, the more interesting question would be:
Fair Market Value as set by property tax authorities vrs. current market value.
I’m at least 22% over assessed, Kane Board of Review will do nothing because they are holding to the 3 year level of assessment instead of the current market value.
Just like the banks, refusing to “Mark To Market”.
Local property tax rates are increasing, and property values are stagnant or still decreasing. These local governments are crazy for what they are doing to people.
Comment by Judgment Day Tuesday, Nov 8, 11 @ 12:47 pm
Bought in 1999 and put 20% down on a 25-yr fixed. Refinanced in 2006 for a lower rate, but went to a 10-yr fixed. Always kept our lenders local. We have been very focused on paying down rather than using equity. Should be debt free by the time the kids head for college…
Comment by Pot calling kettle Tuesday, Nov 8, 11 @ 12:59 pm
No, been in house 20 years, didn’t go crazy fixing it up and the neighborhood has been gentrifying. Tear-down on my block with new house built on spec went earlier this year for $1,250,000, sold in one week with multiple bidders.
Comment by 32nd Ward Roscoe Village Tuesday, Nov 8, 11 @ 1:00 pm
I just received this year’s assessment of my northern Lake County home. In one year, the value of my home has fallen 17%, following a smaller decline over the past 5 years. It’s at 80% of its value when I bought the place 16 years ago. At least, my mortgage has long since been paid off.
If this rate is average throughout my community, our school district is going to take a big hit next year.
Comment by Wensicia Tuesday, Nov 8, 11 @ 1:01 pm
To add, but the house that was torn down sold for $375K whereas a few years earlier, tear downs were going for $500K.
Comment by 32nd Ward Roscoe Village Tuesday, Nov 8, 11 @ 1:01 pm
I’m above water. We bought in 1999, refinanced a few years later into a 15-year mortgage, so we’ll have the house paid off before my child is out of college. While our older suburban (Springfield market, not Chicago) neighborhood has its share of turnover, the bubble never seemed to come our way, home prices have grown pretty slowly over the years.
Comment by cover Tuesday, Nov 8, 11 @ 1:02 pm
We just purchased last year in a subdivision that seems to turn over homes quickly every few years. As far as I could find out prior to purchase, home values have steadily gone up in the subdivision over 10 years. I’m sure we could afford more house, but we didn’t want to get house broke and I’m happy with our purchase.
Comment by Leroy Tuesday, Nov 8, 11 @ 1:04 pm
Boy, THIS neighborhood sure doesn’t resemble the vast majority of American neighborhoods…
Comment by KGB Tuesday, Nov 8, 11 @ 1:07 pm
home prices and the job market have a 100 percent correlation- Boston home prices are back to 2007 levels and their job market is strong- Unless the people running this state get a handle on the economy and do so in a hurry, home prices will continue to fall- The Chicago Metropolitan area is one of the weaker job markets- we are no longer the magnet we used to be in large part due to our political/economic quagmire
Comment by sue Tuesday, Nov 8, 11 @ 1:07 pm
bought in 97, bought right. have redone every room, added a/c, sided it. did all the work myself. am definitely above water. makes no difference. intend to die there.
Comment by anon Tuesday, Nov 8, 11 @ 1:08 pm
KGB, there’s little doubt that the people who read this blog are better off than the average person. That’s partially because it’s so specialized. But there’s no need to get snide about it. I’m almost positive that nobody here crashed the international economy, so you can put down your red flag. lol
Comment by Rich Miller Tuesday, Nov 8, 11 @ 1:09 pm
Bought in an “up” market, but after months and months at a way overpriced list, the homeowner was ready to sell (and even at our reasonable price, he made out pretty well b/c he bought REALLY low).
I think our area is creeping (and I mean CREEPING) in the right direction. IIRC, Wordslinger and I live in the same town.
Comment by Bill F. Tuesday, Nov 8, 11 @ 1:15 pm
Built our home a number of years ago. After just a few years at the going rate high interest/30 fixed, we were able to get a very decent 15 year fixed rate mortgage and converted to that (although at times the higher monthly pmt was a real stretch and we had to do without some things). Now we have the blessing of living in a house is owned free and clear. House retail value has probably declined close to 30% from the bubble high, but still worth more than we paid. Thankfully, we resisted the temptation to take out a “home equity loan” at the height of the madness. Biggest concerns are rapidly rising property taxes, and the fact that now there will be significantly less value to cash out to use down the road (for retirement) when the time comes to move or downsize than we had planned.
Comment by Responsa Tuesday, Nov 8, 11 @ 1:16 pm
Paid off early, with years of sacrifice relative to many of my neighbors. Thank God, because now my wife and I both unemployed for many months.
Comment by walkinfool Tuesday, Nov 8, 11 @ 1:23 pm
We’re underwater, which was annoying a couple of weeks ago when we tried to refinance. Now it’s beyond annoying, as Soccerdad just lost his job. Sigh.
Comment by soccermom Tuesday, Nov 8, 11 @ 1:28 pm
In Springfield, the highs are never very high, and the lows aren’t as low as the national average. I’ve been fortunate. We built the house 9 years ago, doing a large part of the interior ourselves.
Recently refinanced at a lower rate, and still well above water. Thankfully.
Comment by How Ironic Tuesday, Nov 8, 11 @ 1:28 pm
Bought in 2003 with 20% down. probably worth what we paid for it. Bought with a 5 year ARM at $.625. Rate is now 3.125. We are going to let it float for awhile.
Comment by jeff Tuesday, Nov 8, 11 @ 1:30 pm
===as Soccerdad just lost his job.===
Oh, no! Hope he’s gonna be ok.
Comment by Rich Miller Tuesday, Nov 8, 11 @ 1:31 pm
Worth more than I owe. Live in Springfield so the stability is very good. Ive refinanced twice and now have a 10 year mortgage and owe about a forth of what it is worth. Values on my street continue to go up - just not as fast as they used to.
Comment by ModerateREpublican Tuesday, Nov 8, 11 @ 1:33 pm
I bought four years ago and put down 20%, so I’m OK. I just refinanced to 15 years for a great interest rate and the appraisal had the value down almost 5% from the purchase price. I have a feeling It wouldn’t actually sell for close to that, given the local rural economy.
Comment by Earnest Tuesday, Nov 8, 11 @ 1:40 pm
Smaller communities just don’t have the price inflaction. Hence, people could refinance for a better rate. But it’s rare that they could grab more equity out of their homes.
It’s the reason that few downstate mortgages are upside down. Consequently, many community banks are pretty strong.
Comment by Downstate Tuesday, Nov 8, 11 @ 1:46 pm
Mine’s paid off. I bought at the top, but it was just a little fixer-upper that I fixed up. Very cheap to live in, low taxes and utilities. I’m sure it’s worth less than I paid for it, but I used to rent, and I’ve saved a lot more on rent than the house has depreciated. Besides, I plan to stay in it.
Comment by Effillus Tuesday, Nov 8, 11 @ 1:48 pm
Our house in Lake County is worth at least 30 percent less then it was worth in 2007- prices are still declining month by month
Comment by sue Tuesday, Nov 8, 11 @ 1:53 pm
Recently refinanced. Was pleasantly surprised at the appraisal. I’m ok.
Comment by Springfield Skeptic Tuesday, Nov 8, 11 @ 2:01 pm
We’re good. Bought in 2003 and didn’t listen to agent pushing us into more house than we could afford.
Soccermom - here’s hoping your guy’s setback is as shortlived as any capfax poster’s “inappropriate or excessively rabid comments, gratuitous insults and “rumors”…”
Comment by 10th Indy Tuesday, Nov 8, 11 @ 2:04 pm
Whe told by our realtor in 2007 that we could “easily afford” between a $260,000 and $290,000 mortgage we were shown lovely homes with all the amenities. I was not convinced. I went home, did the math and decided to obtain a home that only one of our salaries would afford. We settled on a simple ranch home and borrowed more than $130,000 less than we were told we could afford. Good thing, my hubby fell and broke his hip. Been out of work for a while now. We are thankful that we didn’t allow ourselves to be talked into the homes with the big welcoming foyers, the impressive stairways, the luxurious kitchens, the hot-tubs and pools.
We were just discussing this issue this morning, and how IF we would have gone for the big home with the big price tag, it would have been nice, and even impressive for a while, but it also would have been a real bummer to lose it to foreclosure. One one salary, we could not have held onto it. I feel terrible for those who followed advice and have lost.
Comment by Say WHAT? Tuesday, Nov 8, 11 @ 2:05 pm
I live in a small town south of Springfield. Property values did not rise as much as other areas of the state so consequently they did not fall as much either. Built my home in 1999 and have approximately 10 years left on mortage. Glad to have a lot of the interest out of the way and have a little equity.
Comment by Exhausted Tuesday, Nov 8, 11 @ 2:15 pm
Interesting question. I bought my house in 1983 with 20% down and 12.5% interest rate with 4.5 points. Refinanced 3 years later at 7.5% and paid it off by making extra payments at every chance I got. It is worth triple what I paid although I have paid more in taxes than I paid in interest or for the house.
Comment by Liberty First Tuesday, Nov 8, 11 @ 2:16 pm
I’m surprised so many people in the survey think they are above water. Other than people who own free and clear, I suspect most don’t realize how much value they’ve really lost.
Comment by Allen Skillicorn Tuesday, Nov 8, 11 @ 2:21 pm
We owe more than it’s worth because of a home equity line.
We only owed about 35% of our original mortgage, but then had a family emergency in mid-2008 and had to borrow against our equity. The plan was to refinance later and combine the loans.
Unfortunately, the market collapsed almost immediately afterwards and we ended up owing more than the house was worth. We essentially pay two mortgages monthly and can’t refinance until we have 20% equity. To top it all off, the home equity line is on a variable rate loan. Thank goodness that the prime rate hasn’t gone up, but when rates start climbing we’re going to be in serious trouble.
Comment by Stuff happens Tuesday, Nov 8, 11 @ 2:23 pm
Fortunately, I have equity in my residence. However, through my employment, I work with couples going through divorces, most of whom reside in Will County. I have contact with about 400 couples per year and, anecdotally, would say that at least half of the residences involved are under water. The 46% figure referenced in the article is not in my view inflated.
Comment by Zool Tuesday, Nov 8, 11 @ 2:23 pm
yes, but only by 3 grand and I question the validity of the last appraisal. He used comps that were smaller and didn’t even have the same number of bedrooms. I fought it but lost. Oh well. I have an affordable mortgage at less than 25 percent of my take home pay
Comment by rockford reader Tuesday, Nov 8, 11 @ 2:35 pm
WE only have two years left on mortgage and home equity loan is lower than the value. Consider ourselves in good shape. Property values have remained steady, with slight increases in value in our area.
Comment by I wonder... Tuesday, Nov 8, 11 @ 2:35 pm
Thanks, Rich. Worse things have happened to better people, so I can’t complain too much. I’m still employed, so we’ll have a roof — even if it’s not this one. And thanks for your good wishes, 10th.
Comment by soccermom Tuesday, Nov 8, 11 @ 2:40 pm
Yes — we bought a condo in Chicago in 2005 (enough said, right?). We bought pre-construction in a booming neighborhood near the Loop and got what we thought was ground level pricing…and it was, compared to what others paid for similar units in the building a few years later. We’ve had over 50 foreclosures or short sales in our building which has just demolished the values, even though we are in a great neighborhood just ten minutes from the loop. We’d love to sell and get a house somewhere, but for the time being we are stuck. The only positive is that the rental market is strong in our area, so we may eventually rent it out and then rent something bigger ourselves.
Comment by ChiGirl Tuesday, Nov 8, 11 @ 2:59 pm
As some of our fellow downstate posters have said, our highs way down south don’t get as high, so our lows don’t hurt so much. Our market’s not so bad and our prices were always low. My realtor acquaintances say they’re busy all the time. Add to that, we bought cheap and had a big down payment. Above water, knock wood.
Comment by Ray del Camino Tuesday, Nov 8, 11 @ 3:05 pm
No. We got a bargain when we purchased just ahead of the bubble years and we just refinanced at a significantly better rate. (But I’ve certainly known many people who acted just as responsibly as we did but were terribly screwed because they didn’t have our good fortune and good timing.)
– MrJM
Comment by MrJM Tuesday, Nov 8, 11 @ 3:08 pm
The last family member bailed out of Chicagoland in 2007. Our families lived there over a century. All gone except for one first cousin. Not a place to raise a family anymore.
Sold 40 year old house in 2007 - today house worth half what it was sold for.
Happy to be living elsewhere.
I am not surprised to hear these figures. It will get worse.
Comment by VanillaMan Tuesday, Nov 8, 11 @ 3:17 pm
I should further note that last year while value was going down our property tax appraisal went up! I challenged it and won as I had just had an appraisal done, which had reduced the value from what we had paid, but not what we still owed–which is why I say we’re not underwater, but just floating on the cusp. I fought the law and I won.
Comment by D.P. Gumby Tuesday, Nov 8, 11 @ 3:24 pm
I bought a four bedroom house by a small lake in Springfield for $75K back in 1995. Valued at $128K recently. I refinanced it at 4.75% a year ago and am very pleased even tho I still owe $80 on it.
Comment by gathersno Tuesday, Nov 8, 11 @ 3:27 pm
Rich: Bought a retirement home in Wisconsin in October 2008 with 25% down. Now in the process of refinancing and it appraised for 17% less than original purchase price. I feel pretty fortunate compared to others who have been hit hard by this economy.
Comment by One of the 35 Tuesday, Nov 8, 11 @ 3:32 pm
“Happy to be living elsewhere.”
I’m pleased to report that your living arrangements make us both happy.
– MrJM
Comment by MrJM Tuesday, Nov 8, 11 @ 3:36 pm
Yes
Started a family in 2005 and all my life was under the impression that buying a house when you started a family was my path in life.
So, bought the house (15% down) and right now would be looking at a 35% loss based on comps in the area.
So, I am one of the “idiots” who “bought too much house” with “too little downpayment” (um, anything less than a 35% downpayment was too much).
But there are things bigger than me at work in the world, and for those who came-of-starting-family-age 2003 - 2007 in this area, well, tough bananas as Gramps would have said.
I am not complaining, it’s better than coming-of-age, say, during the bubonic plague, and I have a roof over my head.
Comment by Peter Snarker Tuesday, Nov 8, 11 @ 3:48 pm
We bought in Springfield in 2004. When we refinanced in 2010, it appraised at $20K more than we paid (which is the amount of improvements we’ve made to date). So, we retained the money we put in and, since we now have 20% equity, we got to drop the PMI that we were paying before the re-fi. Thankfully, we’re good, though we know a lot of people in the Chicago area who are not.
Comment by TwoFeetThick Tuesday, Nov 8, 11 @ 3:54 pm
Wow - I answered and hadnt read everyone else’s response - only ChiGirl (also a city 2005 buyer!) and maybe one other cops to being underwater.
You know though, honestly, this is an age thing I think.
http://www.businessweek.com/ap/financialnews/D9QRMR800.htm
I think about this when I read about the programs to keep seniors in their housing, to give seniors free rides on the trains and what-not.
I am not an age-warrior by any means and understand that my parents paid dues to get where they are… but still… the macro picture is not of a destitute senior class and rising wealth youngsters.
The macro is the college grad set (22 - 27) is broke b/c no jobs (and loans). The 28 - 35 set is broke b/c they came of age in a housing market that they bought into that has now crashed more than the great depression.
But, free rides for seniors and senior citizen prop tax breaks made sense (and seniors vote!) 30 years ago so it must still be proper policy now, right? pfft.
Comment by Peter Snarker Tuesday, Nov 8, 11 @ 3:55 pm
Paid in full. Annual tax bill suitable for framing.
Comment by Justice Tuesday, Nov 8, 11 @ 3:58 pm
We bought our first house in 1990 & lived there until we paid it off. Now we own two houses free & clear. Funny how that works, when you live on less than you make and save the difference, life seems a little easier. Our household income is not that high. In 1990, it was around 35,000. It has only been over 70k maybe two years since 1990. For most of that time it has hovered around the national average of 50k. This year I expect it to be around 65k. We have been through several bouts of unemployment and disabilities. We made it through those tough times because we never lived too high above our means.
Comment by DebtFree Tuesday, Nov 8, 11 @ 4:03 pm
Bought into a northeast Springfield nieghborhood around 93. Small cookie cutter houses priced around 65 grand at that time, we got in a little under that. House across the street sold recently for 110,000.00. Have often thought about buying up but never took the plunge. Always tried to keep my debt at a level where I could make it on unemployment for six months if need be. In construction you quite often work yourself out of a job. Anyway we are above water and I could take an early retirement opportunity due to not biting off more than we could chew. By the way there used to be a bar around here called NEWTS. Stands for North End White Trash, the locals have a great sense of humor.
Comment by Bemused Tuesday, Nov 8, 11 @ 4:16 pm
ChiGirl - How do you feel about Lake County? We are looking to downsize and move back downtown - Trade? We could swap houses and capfax handles!
Comment by 10th Indy Tuesday, Nov 8, 11 @ 4:26 pm
Yes, but I’m not too worried about it. My wife and I got what we thought was a bargain (and what our north side friends still think is a bargain) when we bought our southwest side home in early 2010. Fortunately, we bought a house we could grow into over the long-haul (extra bedrooms for when we have kids) in a safe, stable neighborhood (to this day, there are still relatively few foreclosures and businesses continue to open up shop in the immediate vicinity). We also made sure to keep our mortgage (including escrow) below 30% of our take-home pay, which allows us to put a little bit extra toward principal each month. Yes, it stings to know that our house would probably appraise for 75% of what we still owe on it, but we didn’t buy so we could sell. We bought so we could (eventually) own. My fantasy is not to sell my house for twice what I paid for it, but rather to make my final mortgage payment at the age of 55, then spend the last 10-15 years of my working life not having to worry about rent.
Comment by Edge of the 14th Ward Tuesday, Nov 8, 11 @ 5:00 pm
Home is worth more than mortgage; it’s a smaller home in an area of larger more expensive homes.
Comment by cards fan Tuesday, Nov 8, 11 @ 5:57 pm
The talk of homeowners being “underwater” always irked me. If you were sensible, got a fixed % and a fixed time frame (15-30 year) what is the problem? You are only truly underwater when you have to sell. If you got a little careless, some creative financing, and bought more home than you should have, it is hard to be sympathetic.
As long as you can still make your payment, what is the deal with trying to bail out people underwater? We bought a house to live in, not for it to be a piggy bank. If things recovery it will appreciate in value and become a piggy bank though.
Interesting to see how others throughout the state are doing though, and by the way, I am above in my home.
Comment by Fan Tuesday, Nov 8, 11 @ 5:58 pm
All most got down to nothing, but my taxes are pretty high. I love Mokena.
Comment by mokenavince Tuesday, Nov 8, 11 @ 6:34 pm
Bought my house in 2000 with a 15 year loan that I paid off in 9 years. House is currently valued at about $60,000 more than I paid for it. I live in a the Spfld area.
Comment by Tough Guy Tuesday, Nov 8, 11 @ 6:38 pm
Spfld. I’m OK … even though I’m twice as deep in debt now than I was 3 years ago due using a home equity line to help out the kid’s when they lost their jobs, etc. (Finally one of them is working, even if isn’t full time.) And I’m positive of where I stand because I just had both houses appraised within the past month. Got super low-ball appraisals (because I asked them to figure on doing a cash-out for another project) but, even with that, the somewhat leveraged big house has quite a bit of equity and the bank would be happy to re-fi, which I’m considering.
I put 20% down on both my houses and financed them for 15 years. The smaller one I owe so little I could write a check to pay off, but there is no reason to do so right now. I plan to move from the bigger house that I currently live in sometime next year (Mrs. says she’s tried of keeping it clean), and then, if the market is recovering, put it up for sale once we spruce it up.
Comment by Retired Non-Union Guy Tuesday, Nov 8, 11 @ 7:13 pm
My small condo has lost value but my mortgage is small enough that the decrease has not matched my balance.
Comment by Anon3 Tuesday, Nov 8, 11 @ 7:56 pm
House is worth more than we owe on mortgage. We had large down payment. Zillow over values my house and that of many neighbors. I live in Chicago suburbs.
Comment by Mark Wednesday, Nov 9, 11 @ 4:46 am
Be paid off in seven years. Been here twenty years. Not much of anything selling down here though.
Comment by Way Way Down Here Wednesday, Nov 9, 11 @ 7:22 am
–We’re underwater, which was annoying a couple of weeks ago when we tried to refinance. Now it’s beyond annoying, as Soccerdad just lost his job. Sigh.–
Been there. Hang tough, kid.
Comment by Anonymous Wednesday, Nov 9, 11 @ 7:59 am
–The last family member bailed out of Chicagoland in 2007. Our families lived there over a century. All gone except for one first cousin. Not a place to raise a family anymore.–
For myself, and on behalf of the millions raising families in Chicagoland, bite us.
Why don’t you move to whatever paradise you think is out there? Could it be you can’t leave your do-nothing state job, for fear of having to try to make it in the private sector? You know, on merit?
Comment by Anonymous Wednesday, Nov 9, 11 @ 8:12 am