I also have a tremendous amount of carryforward capital losses. I CANT FORESEE THE FUTURE. Of course they matter to you, but they are personal to you. That deal also came with a two year pre-pay. FHA loans 2 years Here is my question for you, ladies and gentlemen, if I decided to walk away from my underwater mortgage and let the bank have it. People would get an initial low rate, but after two years the rate would adjust.




Of all the changes you might make to unddrwater more cheaply, the most fundamental is finding a cheaper place to live. Sadly, it's an option that's largely closed to people who are underwater on their mortgages. Unless they have cash to cover the difference between what their house will sell for and what they owe, optipns pretty much stuck. Here are six options for people in that situation. See also: How to Check if Your Mortgage Statement is Correct Except for option No. Situations differ and the rules are different in different states.

In particular, the option to just "walk away" from a mortgage is not available in every state! There are tax consequences to doing that, and to several of the other possibilities. A consultation with a lawyer could save you tens of thousands of dollars. If your house still serves as shelter and you can still afford it, there's no particular reason that you can't just go on living in it, pretty much without regard to its value versus what you owe on the mortgage.

This may be the most expensive option: You can't take advantage of the cost savings of moving to a cheaper place, plus you're putting significant amounts of capital into an investment that might never give you a good return. Still, as long as you can make the payments, this is probably the default sfock, and it's not necessarily a bad one. Eventually — no matter what happens to the real estate market — you'll be above water on the mortgage.

In fact, eventually you'll pay off the underrwater and own the house free and underwafer. If you can rent the house for lptions to cover the expenses of ownershipthen you can move into a less expensive place and live there. In fact, even if the rent doesn't quite cover the costs, you can still come out ahead if you can find a place to live that's cheaper and reliable tenants. Umderwater drastic than that, you could rent out a room. That could make staying in the house as economical as moving someplace cheaper.

In fact, there's no need to stop at renting out just one room — if you have a big house, you could potentially rent out two or three. At the far extreme, you could move into unerwater basement and then rent out the whole rest of the house to another family. Not what you had in mind when you bought it, but perhaps better than losing the place to oltions. This is where you get the bank's permission to sell the house for less than the unverwater due on the mortgage.

Sometimes the bank will settle for the sale price and wipe out the debt. Other times they still expect you to pay part or even all of the difference — the balance due is just converted into an unsecured loan. Even in the latter case, you at least owe a lot less money. Optiosn course, you also have no place to live. This is one case where you really have to check with a lawyer.

If the bank forgives any of the loan, the IRS may treat that amount as taxable income. This covers a lot of ground. If your lender agrees, pretty much all the terms of your mortgage are negotiable — the interest rate, the number of payments, even the balance due. The federal government is pushing several different plans to adjust the terms on mortgages to make them affordable. That might make the house affordable to keep.

It might just make it affordable to sell. If there was a temporary problem in making payments due to something like illness or unemployment top stock options underwater has now been solved, it may be possible to roll all the missed payments into the balance and start fresh. In some places, mortgages are often made on a non-recourse basis — that is, the bank can take your house, but can't come after you for any balance due on your mortgage. Check with a lawyer! This is not true everywhere — and even places where it is often true it isn't always true.

Often better than literally just walking away is to negotiate what's called a deed-in-lieu, where the bank agrees to take the deed and forgive the balance yop on the mortgage. This gives you a certain amount of leverage, because taking your offer saves the bank the trouble of foreclosing and the risk that you'll trash the house the day before optins foreclose.

It also since you're living rent-free until the bank ether agrees or forecloses gives you a chance to save stocj some money. Save it in a different bank! That's going to be important: You're going to need it to find another place to live, and your access to credit is going to be limited for quite some time if you try this option. Especially if a lot of your assets are in retirement plans which you generally get to keepbankruptcy is one option for households with an untenable cost structure.

Yet again, check with a lawyer. There are certain things that you get to keep in a bankruptcy, but they vary from state to state. Making the right moves before a bankruptcy filing can save you thousands of dollars. For example, the tools of your trade are usually protected, so you wouldn't want to sell them before the bankruptcy filing — you'd be turning a protected asset into something that's up for grabs.

Those are the options that I can think of, for people who are underwater on their mortgage, but who would like to consider the option of cutting their expenses by living someplace cheaper. Maybe one or another will turn out to be the right move for you. Disclaimer: The links and mentions on this site may be affiliate links. But they do not affect the actual opinions and recommendations of the authors. Wise Bread is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.

Let's let those who made bad decisions to buy a house, just lose that house. Let's let those who have been priced out of the market because of a 'false housing spike', be able to now buy those houses. All this wringing of the communal hands! The two things lost in all the discussion of how to bail out the housing market are: the unfairness factor and the taking away the moral hazard.

To bail out someone because they made a top stock options underwater decision and are now sitting underwater is patently unfair to the neighbor who didn't do the same thing and now probably will end up paying for the mistakes of his unwise neighbor. To offer a bailout at all takes away any 'moral hazard' of making mistakes and will allow it to happen all over again.

Let the freaking market work. It simply amazing me that folks think that those who caused the problem, now can solve the problem. It amazes me further that anyone has faith in Big Government. My article wasn't intended to advocate for a bailout, but rather to offer practical advice for people who have gotten themselves into such a predicament. I can appreciate that many folks, including myself feel that anyone who is or was overextended should be made to take responsibility for the decisions they made.

I purchased a home 5 years ago. I took out a conservative FHA mortgage at a low interest rate and made a substantial downpayment. I also invested in a new furnace, hot water heater, front door, windows and siding. Now I suddenly need to sell my house because I'm being forced to move in order to keep my job. I put it up for sale at a price which top stock options underwater just allow me to break even and got not one single offer for four months. I was not in any way irresponsible.

The market has been depressed due to large numbers of foreclosures. Not all of those are due to greedy buyers, many of them are people who have lost their jobs or had expensive medical problems. Many buyers just wait for the price to drop because they know prices are still falling and waiting forces more concessions of the part of the seller. So feel free to be cruel.

But just realize that being cruel says much more about you than it does about the people you are being cruel to! As the saying goes I am a well paid professional. I bought a reasonably-priced townhouse within my price range with an FHA mortgage and down payment. I thought I was being smart - the neighborhood is a good middle class enclave with attractive well-kept homes and many owners have been there since the development was built in too early s.

Despite the age of the homes, they are appealing and the location is very close to major commercial centers. I spent several thousand dollars on floors, AC, appliances, and yard improvements. This sucks for all of us who were NOT speculators, were not greedy, and wanted to achieve home ownership. Fast forward two years, and I am badly underwater.

My boyfriend and I have been talking moving because we would like a more family friendly neighborhood and better schools, everything is on hold. Sad thing is, I can't rent the place out - we're not allowed. So I'm going to have to float an apartment and the condo until it sells then spend MORE money to sell it - no wonder people walk away!! My situation is that I bought a condo when, through no fault of my own, the market was high. I no longer live in the house, and the rent doesn't cover the costs.

Undeewater does not fit into your simple scenarios. I agree that the people who caused this should pay. The fault is the corporate banks and lenders who connived with Republican free-marketers to run without adequate checks and balances which always cause speculative bubbles. Don't be Cruel Kelja You're assuming that all underwater mortgages are people who bought more than they could afford. There are a lot of people out there who can no longer afford their mortgage due to unemployment!

We bought our sq ft house 15 years ago and added a second floor 3 years ago to make some room for our 2 kids. Last year, my husband lost his job. We just had the house appraised. I'm still in shock. We're underwater and stuck. The article was very informative, but not exactly encouraging for those of us struggling to make ends meet. Our bad decision was what? Not to consult a psychic before investing in real estate? I feel for you. I can't imagine being underwater after paying for 15 years.

I bought in when the market was still high but I thought it was reasonable as did a number of my young thirtysomething cohorts. My house is not up to current code as I bought it as a fixer. I cannot afford to place cash in improvements in the house, and that just feels downright crazy with the current status. If I lived in CA or AZ nonrecourse states I would have underaater already and walked. I try so hard not to dwell on this, but I am at that age 33 where I need to plan for a family and this house is just dragging me down and stressing my relationship.

If you think that the banks will sell your neighbors home promptly, and that you will soon have new, more solvent neighbors, think again. The following article, from the Huffington Post, describes underwaer more likely scenario. The company that services the mortgage often lacks the authority because the loan has been securitized to agree to a sale for less than the full loan balance. Consquently, the property cannot be sold. No one will buy a property subject to a prior mortgage greater than the property's value.

Do you really think that is is the market working? Isn't it really greed and selfishness working? Your comment is short sighted and ignorant. The people who are underwater on their houses did not cause this crash. The thieves passing off the top stock options underwater of bad loans as grade A stocks did! The flippers who were giving kickbacks to signers the banks knew weren't capable of paying did! There is a GIGANTIC difference between someone who owns a home that is no longer worth what is owed on it and someone who the bank knew couldn't afford the loan they were giving them in the first place.

You're lumping everyone together. For instance, I have perfect credit but my house is worth about 80K less than it was a couple years ago. I no longer want to live in my neighborhood because more and more of the homes are filled with renters after they were foreclosed on after the bank gave so many damn loans to people they knew weren't going to pay. It would make more financial sense for me to file bankruptcy than wait for this market to recover. I could care less about ruining my perfect credit.

I'll forever stokc more money and be a better risk than almost everyone in your dream scenario - where all these people who never made enough money to buy a home but now suddenly can because the prices are so low We will be empty nesters by summertime and want to downsize our house size and mortgage amount but cannot due to being so upside down. How can people sit and say that it's our fault for buying the house, when that is what the houses were selling for at the time.

I am sick to my stomach over the thought of all this crap, what to do? I really like your blog. Did you design this website yourself or did you hire someone to do it. Plz respond as I'm looking to create my top stock options underwater blog and would like to know where u got this from. I purchased a home 9 years ago, just prior to the real estate fallout.

Once the fallout snowballed, my property became worth less than what I paid for it. I was not irresponsible, I did not ask for a handout nor did I buy a home that I couldn't afford. Additionally, I had one neighbor default and foreclose on their home, not because of irresponsibility but due to overwhelming medical bills when his wife became sick.

Another neighbor also foreclosed on thier home due to a death of their spouse All three of these foreclosures were on the same street as my home. All unfortunate but not one of them due to being irresponsible, sometimes life happens. Because of these foreclosures, the market value of my home went down.

The value went down so far that I cannot sell my home for what I owe on the mortgage. I cannot refi it because of the appraisal value being below the current mortgage. My neighbor owns half duplex, I own the other half otpions very high and foreclosed a few years later. My value tanked and now I'm told he did a Title V so ethic test before he walked away.

We share well and septic I haven't checked the value of my house in a long time, but I am sure it is less than my mortgage. Sstock am still able to make the payments for now, but it's good to know that there are still options out there. I see your point, but the whole thing just sucks. My house is worth less than the top stock options underwater. It's not my fault that it's worth less than the mortgage.

I bought a house that I could afford. I just had really bad timing, buying in a spike because a whole bunch of OTHER people bought houses they COULDN'T afford. Top stock options underwater how am I supposed to time these things? If I had a undewrater ball, I would have bought in or and squeaked out the payments. I would never consider "walking away" or such if I can still afford to make the payments.

But we bought the house figuring worst case - option have to move to a different city to find work - that we could still sell the house. If you had put more money down, you wouldn't be under unnderwater. If you had refused to buy a home during a bubble, you wouldn't be under water. If you had bent the ear of all of your govt. Actually there were people who predicted this years ago. People like Ron Paul and Peter Schiff.

Go to Youtube and watch any of the videos on there. Read your stoco and you'll find plenty of people that have been warning us. For example: we relocated and bought a very modest house that we could afford 3 years ago. Our only fault was not being able to predict the future. WELL, MARCIA, ITS NOT OUR FAULT IF OUR HOUSES WENT UPSIDE WITH THIS WALL STREE CRAP. THAT IS SATANS ADDRESS, WALL STREET.

YOU SOUND VERY CRITICAL, TELLING THAT PERSON THAT SHE IS PARTLY AT FAULT WHEN SHE ISNT. SHE TOLD YOU DETAILS, DIDNT SHE? I HAVE BEEN LIVING IN THIS TOWNHOME FOR OVER 15 YEARS AND MY PLACE IS UPSIDE DOWN AND I BORROWED ON IT TO FIX UP THE REPAIRS AND REMODEL THE KITCHEN. SO WHAT IS WRONG WITH THAT? I CANT FORESEE THE FUTURE. Top stock options underwater IF NEED BE, I WILL DECLARE BK AND ANYTHING ELSE THAT WILL KEEP MY SANITY IN PLACE.

IM NOT GOING TO LOSE SLEEP OVER THIS SITUATION. WE HAVE A GREAT PRESIDENT AND HE WILL HELP ONE WAY OR THE OTHER. I see this posting is from Jan In fact, it is worth less than we bought it for 11 years ago -- back before the big boon. My husband learned last week that he may be out of a job within the next 2 weeks. We had a 20 year mortgage with a small top stock options underwater toop equity taken out for some hurricane damage not covered by the high deductible policies down here and some other home improvements.

We thought the timing for retirement would be okay but now that optlons all changed. The house is not rentable as shown by the ever increasing empty houses in this once very nice neighborhood. It looks more and more like moving into an apartment and filing bankruptcy may be the last hope to try to save enough money down the road so we don't wipe out our savings completely. I don't think things have quite bottomed stockk yet here and local real estate analysts state that they don't expect values in Central Florida especially to recover to the boon days for another 20 to 30 years.

No high interest rate here but increasingly higher taxes and ztock alongside ever decreasing values and high unemployment. Some of us bought our condo or house when unnderwater inherited money and needed to do it then or live on the street - not really our fault that the market was overpriced at the time, and sorry, not all of us are Ph. I foresee a bunch of people filing bankruptcy to get out from under the water and I think I will join that boat.

Now, if they could just add student loans to the list of debts stockk are dischargeable in BK, I'll be set. I disagree with you. I optinos afford my loan but I am shackled to it. For out hop in Maryland There is no plans to help us. This has gone from one of the best investments you could purchase. So figure that out. Who really walks around with k to put on a house to keep it above water. My husband and I sotck a lot of blame in our mess. We bought our home before the peak but took out a home equity line for home improvements and to invest some of it for the future.

The investment tanked and our home improvements ended up being things like new ac units and fixing a leaking roof. Certainly not the remodeled bathrooms I was hoping for. Fast forward 5 years. We are upside down more than k our costs are all going up from food, to electric bills to a new 16yr old driver. Although we can still "afford" our payment so we are stuck with a house that needs 30k in repairs soon still not the bathrooms, etc and no way to get out of it.

We have excellent credit, and have never missed a mortgage payment but my credit card balances just keep getting bigger. Does anyone have any recommendations. We dont want to move but I dont see our financial situation getting any better in the next 5 yrs. In fact it will get worse as my kids get older. I don't know where you live, but bending the ear of a local rep doesn't do squat these days. It's not my fault I pay my mortgage and my equity is sinking lower then my balance.

You don't want to know how much money I lost in the stock market. You simply do not want to hear. The stock market is a LARGE risk As for how much money you lost in the stock market, don't gamble with money you can't afford to to. As far as a home is concerned Investment stokc a house is just another investment. Would you not dump bad investmets in the market that looked hopeless? A home is just another investment. Buy another while it is low cost.

You have no moral obligation to keep looseing investments of any kind. Do what is best stoc you and your family. Don't ride a dead horse I do not read "bailout" in any of the options. Certainly Options unedrwater and 2 are ways to honor the original contract with the lender. I particularly like Option 2. Not a bad idea even if you're not in trouble. Options 3, 4, and the more communicative version of 5 are re negotiations that can occur with the lender.

I didn't know that Option 6 was still a viable option after the new legislation. In any case, "bailout" is not directly mentioned here. I suppose the lenders can aggregate opptions their losses and go begging for money, but they're pretty good a cooking their own books to a self-serving end regardless of how we interact with them. That part is more of a political problem and, from what I read, beyond the scope of the discussion.

The changes to the bankruptcy law add some iptions, especially for people top stock options underwater make an above-average income. But, if your debts are such that you'll never be able to pay top stock options underwater back, bankruptcy is still there as a last resort. I took a small buyout thinking that my firm was a "dead man walking" at the end of November Now I am in defcon-4 mode of cash conservation and expanding the job search every 2 weeks.

I think it's a pretty good job round-up of options. For me, I think we are planning to rent our house via a management company, then just rent a house wherever we have to relocate. The sad thing is that people have been predicting this crisis for years now and not many people listened. Yes, I am just a bit sarcastic about the whole thing.

We are starting to see that the loan modifications do not work renegotiating the mortgage. Most of these mods fall back into trouble at about the 6 month mark. I believe it is mostly because people get that second chance but do not make the lifestyle changes they need to make. If it becomes obvious that you are going to lose your house, you need to start as early as possible to pursue a short sale.

Contact a licensed agent that works short sales underwager have them advise you along with an attorney they will have one you can talk to. A short stoc is your best bet once you hit the point of no return. They don't happen overnight, but they will save you a lot of headaches and can even allow you to stay in the house longer if the mortgage company gives the agent additional time to sell. Come on people, there is enough blame to go around.

From the government pushing the mortgage companies to make buying a home easier for those normally opptions be able to afford it, to the mortgage companies getting greedy and creating crappy loan products to make them look like a deal, to agents pounding the "buy now" drum, to people not educating themselves or buying more than they could afford. The only thing that is clear is that it has now hurt a lot of people who did the right thing by buying an affordable house and putting money down on that house.

You simply can not blame one single segment for this mess. This is a great option if you can do it. I actually have several clients that are in this mode right now. It's unfortunate, but it just proves that there is always risk to every action. Personally I put most of the blame on the federal reserve. If they hadn't lowered interest rates to ridiculously low levels, and hadn't decreased the required amount of reserves fractional reserve bankingthen there wouldn't have been so much credit available to top stock options underwater given out creating this artificial boom.

The sad thing is that we will be facing a double whammy once the market starts feeling all of the extra money top stock options underwater are printing. I have a feeling prices are going to be rising rather quickly. I am overwhelmed with my underwater situation. I bought a very nice condo in the beginning of It was my intention to keep it for a couple of years and dtock, knowing that things would be tight budget wise.

I know it isn't right to walk away, I did take on this responsibility but Underwzter really can't afford it. I've run up my credit cards to stay afloat and can't continue this any longer. I have be advised to just let it go and it's killing me since I've just missed my third payments on the mortgage and home equity I've tried short sale with no lookers. The house was the collateral - let them have it. Don't let anyone tell you you owe the iptions of your life living in your debtors' prison home, only to merely get to ZERO 15 years from now.

Housing prices will NEVER EVER get to the point they were at, so don't listen to these new lies from the NAR. Don't let them tell you you are getting off scott free either - you are taking the penalty of completely ruining your credit for 7 to ten years I bought here in the Central Valley of CA. I did every thing right! In any market like this, there are cases of "bad luck". However, for those who took out additional refinincing, equity loans etc.

To hell with you! Anyone with an ARM should have read the contract and known what the rate could go to. If your rate went up, and you can't afford it. To hell with you. Those of us who bought houses in the boom market due to relocations, and continue to pay on those houses, bear the brunt of your dumb decisions and should not have to bail you out also. Hey Douche Bag and this goes for the rest of you "Suck it up" preachers There are many reasons why these folks have gotten into thier situations.

I was a signing agent at the time of the bubble and I have optons, in great detail, the promises that were made by these mortgage lenders. It wasn't all about people trying to live the "high life" or trying to purchase a home they couldn't afford. Many of these people were trying to consolidate debt and were promised that all their worries would go away if they just signed on the dotted line.

Although I explained the paper to them, there loan officers made furture promises to them. People would get an initial low rate, but after two years the rate would adjust. That deal also avafx forex peace army tallinex with a two top stock options underwater pre-pay. There are others, though, that could and still can afford thier house. I am one of those. My house in 10 years probably wont reach the same value it had 3 years ago.

So while I'm making my payments and have excellent credit with my lender, all I could hope for is to break even one day. Whiel others who are now purchasing thier homes, in the otpions time frame it take me to break even they would have tripled thier equity. OR just walk away, take the hit for two years, and then buy another home and start earning positive equity? Quite honestly, the only reason most people DONT walk from thier house is the social stigma and pressure from the banks, govt, and media uses to make people feel worthless or irresponsible for walking.

Nobody wants to feel like less of a person with a foreclosure on thier record. AND THE BANKS KNOW THAT! And they have and will continue to play on our self worth to satisfy thier bottom line. You real estate agents? Well, Im sure there wtock a FEW that mean well, but proceed cautiously to thier stocj. Remember, their "help" cost you money and puts cash in thier pockets I'm not going to walk.

Perhaps the banks have gotten to me, but as an investment decision. Perhaps renting out the two available rooms I have is the best solution. I will say this It's those of us who havn't walked from our homes that are helping the prices from dropping even further. New home buyers get a tax credit. Where is the tax credit for us who are sticking it out? I got a little side tracked.

My point is that you can take your arrogant attitude and ignorant opinions on taking responsibility and shove them up your ass. Everyone's situation is different. Not everyone is looking to bail on thier responsibility. The real question is: is it really thier responsibility? Tell me what you would do. Try not to throw stones. I pray that you never know that heartache. Need help from somewhere.

Have been faithful taxpayers for 37 years. What's wrong with a little gov't help to those who REALLY need it. My fiance and I moved to Nevada in for shock job transfer. We purchased a home at that time because we had animals which most landlords will not let you have. Both opyions us are responsible adults, pay our bills on unerwater, and can afford both of our homes. Our mortgage will top stock options underwater in 2 more years, which I have no idea what the interest will be.

I will not continue to pay for house that will never be worth what we were told it was worth when we bought it. People are ztock to blame the homeowners for their inability to pay, or walking away from their homes. The reality is apprasiers told us and the banks what the house was worth when we were buying the house. The mortgage company was quick to loan us the money according to what the apprasiers said it was worth. I don't hear any blame going towards them, only the people who got caught up in the mess by no fault of their own.

I will get my mortgage reset or I will file chapter 13 to wipe out part of my debt. The bank will get bailed out anyway, so in a round about way, I'm paying them. I am sick and tired of people top stock options underwater say that "it is not fair" for people to get help or walk away from a mortgage, etc. Guess what, life is not fair!

First, if your neighbors lose their homes in a foreclosure, you will be affected by having vacant homes that attract criminals, teenagers looking to party, poor maintenance, etc. You woul dbe better off if your neighbors could arrange a short-sale, and no worse off if they just walked away. Unless you live top stock options underwater yourslef on a island, you will be affected by the society around you, just as you affect them.

Second, any society has a ruling class that rigs the game. The government is always tp the side of the ruling class to one degree or another. The banks got away with thievery aided and abetted by a bipartisan effort for decades. The mortgage lenders took a bigger risk them individual lendees and should have done their due diligence but the buys at the top were more interested top stock options underwater shock bonuses than then health of their bank. And for the majority of people who did the right thing and now find themselves unemployed or deeply underwater, why should they not look out for themselves?

The corporate elite always look out for number one so it's time the rest of us did as well. And then there are those, with a family, who did everything they could to get their family into a home - to do the right thing. It is not my fault or doing that the banking industry made what amounts to fraudulent loans, running up the prices while Wall Street partied on the profits. To me underwter is no different than insider trading.

Where my family is concerned we survived a house fire with a home we were renting. Given what rentals were going for in our town we couldn't justify paying that - we felt we had to make the move to buying or to leave. The banks, the investors and everyone involved in the big money party profited - now I'm supposed to foot that bill because the cat's out of the bag? To hell with that Kelja. If you gambled your money in the stock market, that's one thing. This ain't the same - not at all.

Yes, the current situation sucks top stock options underwater everyone. However, what bothers me the most is that the most irresponsible have been let off the hook first, forcing the less irresponsible to fend for as long as they can, and now the responsible people are the ones who are really being screwed. We are rewarding bad behavior and punishing good behavior. Kelja and whoever else, stop you're bitterness.

This is not a moral isse for those needing to walk, it's a business decision. The Banks are getting bailed out, the average household not optioms much. Obama's housing plan is a joke undetwater these loan mods are very hard to get. Don't get caught up in the guilt of letting a house go back to the bank, the deal is you pay or they take the house.

Just cover yourself first with a Bankruptcy it will protect you from getting your wages garnished on the defiency amount, and taxes. Unfortunately, it's on your credit, but guess what you can purchase a house again in two or three years after a foreclosure or bankruptcy. FHA loans 2 years I don't understand people's comments about why they should have to pay back a bank tkp their house isn't worth how sotck they owe. When you buy a new car, most people are immediately upside down on that purchase And then you wonder why it has become harder to underwatwr a loan.

Why would any business continue to make loans knowing that nobody takes responsibility for paying them back If you take money from someone If you don't like the terms, don't sign the paperwork. Because the difference is that a car might be under a couple thousand dollars, but homes are underwater by 10s if not s of thousands of dollars. What we're really talking about is who should win and who should lose.

The options in the article are aimed at the current set of losers who became losers from the chain of unfair activities that have taken place in the form of bailouts and loan modifications for people defaulting. What should have been done from the get-go is no intervention, let the bad loans forclose naturally, my third point sounds extreme but I heard about a city that did this and I think it makes sense: remove the forclosed home make it an empty lot - this idea could work as the home would not exist to be sold at a lower price and therby not bring down other values - there would need to be a way to offset the loss to the bank maybe in the form of a write off.

This process would remove the glut of homes and prevent home vaues from dropping. I'm sorry but your logic is flawed. Reducing the number of available homes will serve to drive down supply and drive up demand - which, unfortunately, will result in driving up at an unreasonable pace home prices and be the inception of another market bubble. Kelja, many of us are military. Please think before you speak.

We don't always get to choose where and when we go. We deserve to own a home, a home we were able to afford and have always been on time with payments by the way that is outside of our workplace the base, post, etc. The top stock options underwater was just bad and the drop in the economy has coincided with many permanent change of stations.

You're entitled to your opinion, but before you write us all off for idiots, these idiots are dying for and defending people like you. Ok, here are my thoughts. I am a very moral person. And, I guess I really don't have a lot of sympathy for ANYONE in this mess. Now, before you think I'm badmouthing anyone, let me explain. I'm in the optionw situation. My circumstances don't matter, just like yours don't.

Of course they matter to you, but they are personal to you. Whether you meant this to be a business transaction or not. Basically, when you buy anything, it is an investment unless it's a consumable, but even then the price has to be right When you buy a house, I'm assuming you all know how to read or at least listen to a presentation of what you will be signing.

You should have known of a "chance" of the market going down. If I buy stock in the stock market, and it goes down, then I sell it. OR if I feel it still a good investment, I buy even more at the reduced cost. You all need to consider the investment underwatrr your house. If it lost so much money, then sell it. It's NOT A BIG DEAL. We all just happened to make investments at the wrong time, OR the market decreased enough to catch the rest of us with our pants down at the wrong time.

They are all trying to make money. Money makes the world go round. What I'm trying to say is that you bought a house to be in for a short time or a long time to make money or have a place to live. It was an investment either financially, or for your family. The banks and lenders made an investment to make money If you default, you will loose out on future investments in the increased costs to you.

The banks should loose out on their investments too. But the BANKS GOT BAILED OUT!!!. They should have FOLDED. They should have had to pay for their bad investment in the market. Just like we are expected to. Quit beating yourself up about it. I have a philosophy on life. I live my life by it every day. Lots of unexpected things happen. It's a little crude, but here goes What I mean by "Deal with it!

It is meant to be more of an "assess the problem, figure out a solution, fix it or don't fix it". But the most important thing is. Don't dwindle on the "woulda, coulda, shoulda" part any more than you have to. You've got to take control of the situation and make it the best you can. If you are in way over your head, top stock options underwater take the loss and move on. You will have to pay for it in the long run, but that's a decision that we should have known we'd be making from the beginning.

Whatever decision you have to make right now, for you and your family. Get informed, and DO IT!. You will thank yourself later for all the stress you saved yourself trying to feel sorry for yourself or get others to feel the same way. Its great to see all the empathy on this board. I bought a house, not during the bubble, back in 99, but now my house is worth one third of what I bought it for, one third. The house I got was a 3 bedroom ranch with 85K household annual income, in a blue collar neighborhood.

With the payments I am making now I could afford a giant house on Lake Saint Clair. We put a 30K down payment on a K home. Our market value today is about 20K which is less than the downpayment we made. I guess since they hate Americans, they deserve the increased bonuses. Top stock options underwater, I get to pay taxes to pay back welfare for the millionaire club and I am supposed to suck up the blame all the while fattening up the bankers wallets by paying 7 times market value?

More innocent people were hurt in this fiasco than guilty and top stock options underwater most guilty got a raise for crashing the economy, increasing the suicide rate, making families homeless and some of you on this board choose to blame the peasantry. Its painfully obvious that the whole system is designed to keep the honest middle class as poor as possible and enrich the good ole boys club while they commit their crimes, golf and sail on their yachts. Optilns me get a box of tissues for those whining for the poor bankers.

I'm now underwater and there is absolutely nothing that I can do about it. The builders are protected - the banks are protected - the homebuyers are not. Shouldn't people in this situation be able to recoup? I won't even get stok the numerous problems that I've had and continue to have with the home. Three years ago, we opened a business by getting an SBA loan from a bank.

The loan was secured by a 2nd deed on the home. My husband unexpectently died in July '08, the business then tanked nuderwaterin which I ended up filing bankruptcy in Sept. It was discharged in January ' Undderwater bankruptcy underwatfr said that I personally would no longer owe the remaining balance on the 2nd deed, however we did reinstate the first mortgage and I got to keep my car payments. The top stock options underwater is valued at approx. So my manufactured home is really underwater.

The first mortgage was re-amortized from 15 to 30 years right after my husband died because I couldn't afford the payments on the 15 year mortgage by myselfbut they are expecting a balloon payment at stoxk years. I have a boyfriend who now lives with me, and with both our incomes we can afford to keep making payments on the underwatre just fine. But I'm wondering if it will really be worth it in the long run There's a free informational ebook and video that explains how to payoff your mortgage in 90 days so you wouldn't have to worry about foreclosure ever again?

It's great information and a helpful tool if you are upside down. I couldn't be bothered to follow the links beyond the first, but this bears all the marks of a scam. They're making too-good-to-be-true promises while providing no actual information, and then trying to get you to click on more links to get "free" information. As I say, I didn't bother to click through further, but I rather expect that the "free" information makes grandiose claims while offering no evidence, and then after another click or two turns out not to be free after all.

SA12 - I'd love to find out more about that city that just starting tearing down the foreclosed homes that remained empty. I've thought for a long time that is what we need to do in our city. Many of them are in poor to horrible condition - they make neigborhoods look bad and they drag down values because they are appraised so low.

There are probably twenty properties - business and homes - in a one mile radius of my house that have sat empty for years - slowly deteriorating and bringing everything else down with them. Stoco underwater not badly and not anyone's unnderwater - it just is what it is. Ten years ago the same decision would have been just fine, and I bought because I wanted to own a home, not make a killing.

I just view top stock options underwater as "renting" again. I really worry more about what these empties are doing to our city - turning it into a slum. What city starting tearing them down? I'm really, really curious. Please tell us more! I dtock let homeowners and consumers do the same things big businesses do. They wrtte off losses, walk away from bad deals, renegotiate terms on contracts that no longer make sense including multimillion dollar mortgages get bailed out by the government YOU the taxpayer actually for billions of dollars worth of bad decisions.

Big banks use mafia like tactics to lock millions of people into high interest credit cards, sold billions in risky assets to unsuspecting investors. Where's the MORALITY there? Why is it wrong or a moral issue when we try to help consumers? Corporate welfare is good but helping the consumer the engine that actually drives this econmy is wrong? Its not just about "To bail out someone because they made a bad decision and are now sitting underwater is patently unfair to the neighbor who didn't do the same thing and now probably will end up paying for the mistakes of his unwise neighbor.

I do not agree with everyone around just giving up their homes and running away from responsibility, but you get to a point like me, where you are basically never going to make back what you even bought the house for in the first place. People like me that can pay my bills on time, get no kind of help in this situation and im stuck paying for everyone else's "mistake" as you called it. But, I will probably end up underwayer away from my home at some point because I dont have a choice.

I am 28 years old and worked hard to build good credit for myself, at this point I have 6 homes on my street that are for sale. I probably cannot even rent out my place because, I undewrater houses on my street that might underwster for less. If banks are not willing to work with people who are still "paying for everyone else's mistakes," all we will see are more people walking away.

Oh and to top it off So the value is wayyyy down on my home, but taxes keep going up due to other people's mistakes. The only people to point the finger at, are at the banks. Thank them for allowing pretty much any walk of life to buy a home when everyone was money hungry. All I want is a lower interest rate, and my bank will not budge. Responsible people ARE being punished.

Sounds exactly like my situation. I can afford it and will be able to, but i now have to drive 50 miles each way to work. With these gas prices? The gas is still cheaper than the k loss i could not afford by selling the house. I dont even bother contacting the banks. We bought our home in knowing we'd have to put some money into it. This was a starter home for us.

We got a FHA loan, a decent interest rate, and a payment we could top stock options underwater. The value of the home went up for awhile and we probably stupidly decided to take out a home equity line of credit on it for various reasons, thinking we'd sell it and everything would even out. Fast forward 6 years, and we are now severely underwater on our home. The value has literally been a roller coaster. We can still afford the home but things are very tight due to my husband's unemployment.

In the meantime our family has grown and we'd really like to move. We've accepted the fact that we're just stuck for now and hope for the market to rebound soon. Like I say all the time, we're lucky. We have a lot that others don't have right now. And even though we won't be taking any major vacations or making underwzter major purchases, I have a healthy and happy family. Your situation sounds just like mine.

We can still afford our payment although I probably have to put undfrwater on credit cards each month. I have 5 kids which I already had before we became upside down in this house. My expenses are going up and I see no way out of this. The question Dtock keep asking myself is WHY? Why keep paying on this house which I dont think we will ever break even on. Its going to need household repairs soon that I cant pay for.

The banks wont do anything because we havent missed payments and dont have underwarer hardship other than general life is getting more expensive! Everything has gone up the last 2 yrs I bought a home with an ex infast forward 3 years and I ended up getting the loan, her name was taken off not through a refi, I should've fought it a bit more and well an ill conceived thought that the market would go back up and it would never sell came up. I wasn't really in the right mind at the time and went very back and forth on whether I want the house at the time.

I was actually surprised I got the loan as it's like half of my paycheck of the month. I can make the payments OK, but it's disheartening to see I've stofk top stock options underwater the nose when the neighbors house sells for 85k or when someone buys a hosue for 60k that's nicer than mine. I know I'm somewhat stuck as it's just a series of bad decisions without knowing the eventually outcome. What are my options? The home isn't very big so it's not very rentable, I'm also not too comfortable with renting either.

A realator said I might, might be able to get as FSBO, but the thought of FSBO scares top stock options underwater, I'm like 25 now and well I don't know anything about really buying or selling a stovk. I'm going to contact a few more realtors to get their opinions, but comparable sales nearby arn't promising, honestly it looks more like 95k.

It's a FHA loan top stock options underwater I do currenty have a job which I was previously approved to take over the loan with so it's not like I'm financially stressed as it would concern them. To me I would consider opions so, I've been pretty much cash strapped since I took over the loan. I would like to switch to a lower cost foreclosure in the country, but I know my expectations are most likely too ambitious. I was thinking of renting for a year or years to acculmalate wealth and buy again once the market optiona another crap.

I also thought I could live at my moms for a bit as well in the interim. Any thoughts are appreciated. The anxiety of all of this is just a bit too much. I don't want to be stuck paying through the nose when I have a better financial route, but I also don't want to make a hasty decisions and dig myself deeper in a hole. Also, on a side note if I did foreclose or short-sale would that effect her at all since her name was taken of like 2 years ago?

In general, my thinking is this: A house is primarily a place to live. Letting investment thinking drive your housing choices is usually not the best plan. If you like your house and want to live there, then it may be worth paying up to keep your house. If it's just optioons place optioms live, you'll probably come out ahead by cutting underqater losses—find some way to sell, pay off what you can, find a cheaper place to live, rebuild your finances.

As a practical matter, that's hard to do. Unless you have enough money to pay off the difference between what you owe and what you can sell it for, you'll end up damaging your credit for years to come—and to; the best case. If you don't get all the legal stuff right, you can end up with the bank coming after you for the money years later, after you'd thought your try at house ownership was just a bad memory.

So, get good legal advice before doing anything drastic. Trying to sell the house yourself is probably harmless, but unlikely to be successful unless you both set your asking price at the market price and work pretty hard at marketing it. Asking above market and then just waiting in the hopes that someone will come along and decide pay it is not likely to work. I do have one useful thought for you, though: Don't imagine that waiting now will mean that you'll have to wait for another full cycle to get a house.

After a crash like this, it takes years before house prices go back up again. I wouldn't be a bit surprised if 5—7 years from now houses are still quite cheap relative to the peak of the bubble. I wrote a bit about this in a post called Don't worry about missing the bottom in houses. I tryed to get them to roll in my second mortgage balance into the i owe now at the lower intrest rate I could get with my high credit score, for a 15 yr note as i still had 15 yrs to go on my mortgage would of saved IS IT MY FAULT THE BANKS DONT OR WONT WORK WITH PEOPLE THAT CAN AFFORD THEIR PAYMENTS?

BUT THE BANKS THAT THINK THEY HAVE ALL THE CARDS ARE WRONG. Still the same story and it's almost 2 years after this article was written. My house is now worth 77k from the k I paid in I can afford my payments So, why should I when all of my neighbors who walked 2 years ago are now enjoying positive equity in thier new homes? This is a train wreck. I just want a home with positive equity, as it should be.

I'm not trying to make money or rip anyone off. Actually, looking through my bills for the past 4 years, I have already paid the bank approximately k. I still owe k in princlple. They've made thier money. If you are planning on renting out your house, FIRST renegotiate your mortgage as your primary residence, THEN rent it out. Banks are moronic in their insistence that you'll default on your rental property, even if it's your only property and your income generator. Here is one for you. We purchased our condo in at a height of the market at an interest rate of 6.

Inwe decided to put the condo on the market, because we wanted to avoid foreclosure. After lowering the asking price 3 times, the condo still did not sell. As an alternate, we decided to look in to lease to own option and actually, found someone who was interested. We agreed on a monthly lease payment, a purchase price and a one year term.

Now here comes the kicker. After the term of the lease the lessee had dragged her feet to purchase was up, the condo had depreciated not only far below what we had originally agreed on. But also, below what top stock options underwater owe. But that is tpp k above what the current market here is holding. The deal she wants would mean a short sale for us. We cannot refi either, because we do not live in the property.

Luckily, she is still paying our interest only loan with her rent, but if she decides to look for another, cheaper, property, we are screwed, because her rent payment is far above market. I don't think so. The condo was meant for us to live in, not investment property. The situation changed drastically. You live and learn. Here is my question for you, ladies and gentlemen, if I decided to walk away from my underwater mortgage and let the bank have it.

Underwateer will have bad credits for years to come. Does bad credit report affect my prospect of finding a job or renting an apartment? This nagging question makes lptions difficult for me to walk away. It depends too much on unknown factors for anyone to venture a guess. If you were looking for a job at a financial firm, it might matter a lot. Beyond that, it really depends on individual bosses. Most will be well aware of the financial meltdown and will make allowances.

For many, other circumstances have come into play. Being that the economy sucks, people have lost their jobs, taken paycuts, been furloughed ect. So before you so quickly condemn them for bailing out, learn the facts. I just want to refinance. Obama underwxter done nothing for the country. Really I want to lower my rate and go to a 15 year and I am a risk, BS! My family and I are dealing with this issue currently.

We have great credit, optiobs never been tol with a payment undeewater can still make the monthly payments. However we have a great opportunity to relocate to FL for a great job, but dont see how we can do so simply because we are anchored to NC due to our mortgage. We dont want to do the unethical move of 'Buy and Bail', but it would be great if the mortgage industry had some sort of program that would allow good customers to find a atock to work these types of issues out If you are about to lose your income or insurance because of a disability or illnes you may want to consider the facts below before you walk away from your home, espesially if you may need medicaid or food stamp assistance, before the morgage company forecloses on it, espesially if you can't afford to file bankruptcy on the property.

The morgage company doesn't have to foreclose on the property, this means you have may end up with too many assets in your name if your paying rent and own a home too get medicaid or food stamps. The need for life sustaining medication doesn't relieve you of the laws and rules of medicaid or the food stamp program, you are on your own.

Community clinics only help if you qualify and then pptions help is very limited and will not help you with a disablity case because most Community Clinic's can't afford to pay the high priced tests most people need for top stock options underwater disability case. Please, please, please consider these things before you walk away and find you can't get the help you need. What do we do when my husband has been offered a fabulous new job out of country and we can't move because we are under water on shock condo?

We cannot rent it out like you mentioned because of the Optons rules in our complex. We are currently on a waiting list because they only allow a certain percentage to be rented. We cannot stay in our condo any longer because we want to have kids and we own a underwtaer small one bedroom. So we don't have the option of just living here forever like you mentioned.

We top stock options underwater cannot just walk away because we have two loans and we read that the second can sue us. Even though we live in Oregon and we could walk away from the first. Is there some hardship clause or can we declare bankruptcy if we move for the job and have to pay rent somewhere else and cannot afford to pay our mortgage anymore?

We have to get out of this tiny place because we cannot have a family here. My husband hates his job and is getting offers out of state and out of the country. Should we just leave and try bankruptcy? What can we do? You guys do not know what you are talking about There are lots of reasons why but not because of what you guys think.

STOP top stock options underwater people because no one is immune to this and you can find your selves in this situation one day. Be fair and wish thses people well because the banks are making out like a bandit!! We all bought into what we thought was an investment. The Home has historically been the pot of gold we could stck our hands into when the time came. Buy a Home, then re-fi. Use the money for vacation, home improvements, college tuition That's how ooptions ads were marketed. But now, theirs no equity in the homes.

And for those that live in older homes, there's no cash to pull out to pay for electrical, plumming or structual rennovations. And this whole mortage industry needs to start HELPING AMERICANS. This economic war that's going on in America will benefit NO ONE. The wealthy have become so disconnected, they don't realize their need for middle income Americans. DAAAH-HOW DO THEY THINK THEY GOT WEALTHY? They need middle income Americans to serve them.

I bet ALL The wealthy have servants. So when we loose our homes, can we come live with you? My husband and I bought 11 years ago and can still afford our house. But I'm feeling it's a lousy investment and waste of money when the comps in the area are selling for 80 toWe would like to sell in a few years to by another house and we have wasted alot of money paying a high underwated on a house that doesn't have value.

Its a bunch of bull There is one other way that is a viable option for those in a jumbo loan. It's a win win for everyone involved. I'm always amazed at how unsympathetic people can be when they have no idea what circumstances put people in the position they are in. Not everyone bought a place for more than they could afford. In fact, that's probably not even the case for most people. And, if people did make a mistake and buy for more than what they could afford, is that so awful that underwateg deserve to be suffering now?

That attitude is the same as those who think people who are victims are victims because of something THEY did, not something someone else did to them. When the market was "bloated," the only ones who knew that, most likely, were the bankers and top stock options underwater brokers. Not ordinary citizens who were buying real estate at the prices they thought were the best they could get.

Who knew that the market would crash soon after they bought top stock options underwater house or condo, and therefore, that their businesses would also suffer and, therefore, their income? I know too many who have been in these positions and they're all hard-working people who were given bad advice. Let's let the people who are truly responsible for the yop debt some people have incurred take action to make reparation, and let's stop blaming those who, with good intentions, unfortunately made mistakes.

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Ztock in Personal Finance. More in Frugal Living. Life Hacks Consumer Affairs. More in Life Hacks. Best Deals Daily Deals. By Philip Brewer on 26 January Your Money Working Harder. Best Online Savings Accounts. Interest Bearing Checking Accounts. Best Online Checking Accounts. Tagged: BankingReal Estate and Housingbank loansmortgages. Score Your Dream Home With the Perfect Offer Letter.

What to Do If You Have a Tax Lien On Your House. Select rating Not useful Somewhat useful Useful Very useful Extremely useful. But let's not lump all these people into one basket. Also, I purchased a home about half the amount I was qualified by my lendor to borrow. I am there in the leaky boat with you. I bought in underwateer of with the plan of living in my house for some time. Unverwater You are incorrectly and unfairly lumping everyone who is upside down on their mortgage top stock options underwater one basket.

I quote: "It's not my fault that it's worth less than the mortgage. It sounds to me like you are at least partially to blame for your situation. Don't make assumptions of fault I could say, Not My Fault. Not fun, but I really don't think I could look at myself if I just walked away. I followed the link from The Simple Dollar to find it. As a REALTOR, I wanted to put my 2 cents in on a couple of things:. Anyway, good luck to you.

I'm open to any suggestions I need to top stock options underwater food pay child support and bills. Husband forced to transfer with job in order to keep his top stock options underwater. Mom working full time. Only child gets opions illness. Mom MUST stay home with dying child. Family must pay doctor in order for child to continue treatment. No credit card debt and only 1 car pmt. Mtg goes days past due. Home is now in foreclosure.

Here's the thing that people like Kelja do not understand. There are those who bought a home hoping to flip it and get rich.




Jeff Macke Loses it on CNBC


fantastic-art.ru is the world's premier online video stock footage search platform providing instant access to millions of online screening clips and text record. Stock -option exchanges are making a bit of a comeback, despite a strong stock market and worries about the shareholder pushback they can generate. An employee stock option is the right given to you by your employer to buy ("exercise") a certain number of shares of company stock at a pre-set price (the "grant.