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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Newbie
 
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Agreed. But why preach responsible spending when you can simply blame Banks for the mess? Silly me, I thought mature adults were capable of making responsible financial decisions for themselves but I think some recent posters are on to something: Let's have the government spend billions more to payoff everyone's mortgage, including the current $580,000 tab on this property. This couple can keep their brick row house, the kid's iphones and have money left over for fencing lessons!
Posted on: 2011/8/4 2:07
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
 
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I think it depends on what you include in the calculation - my number is $3 trillion. But.... the kicker is that when the houses of Lehman and Merrill were burning over that weekend in mid September, 2008 the government could have solved all of the delinquent and defaulted mortgages for less than $600 billion! Had they bypassed the banks, GMAC, Fannie, Freddie, AIG, FMC and all the others who had taken mortgages and turned them into a ponzi game on steroids - and handed the money directly to the people who actually owed the money on these mortgages (or made the payments for them), the government would have saved $2.5 to $4 trillion. And that $600 billion wouldn't have just caught up the delinquencies - it would have paid off the entire outstanding amounts on these mortgages! So... is this several trillion dollar problem really the result of "rewarding those that made BAD decisions and attempting to penalize savers and those that made GOOD decisions" or is it something else? The entire amount of outstanding mortgage debt in the U.S. at the end of 2008 was only $10.5 trillion. The unchecked financial markets took that small sliver at the bottom of the market (subprime ARMs were only 7% of the overall U.S. mortgage market in 2008) and multiplied it over and over and over until it created the real problem. Sure, the stories of people borrowing against their homes for vacations or discretionary luxury purchases are out there - and they really happened. But that is so small in comparison to the damage caused by the casino multiplier the banks engaged in. That's the toxic debt that needs to be cleared from the system.
Posted on: 2011/8/3 23:53
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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According to an report published today the amout of federal bailout is $4.8 Trillion. Of that $2 Billion went directly to homeowners the rest to the crooks that caused this mess.
My question is when does the revolution begin?
Posted on: 2011/8/3 23:10
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Quiz: Since mid-2008, how much money has the government spent on its various bailouts, TARPs and other assistance to offset the effects of the real estate/banking collapse?
Posted on: 2011/8/3 22:10
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Quite a regular
 
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Why does it appear as if Zillow raised the estimates for homes in JC over the last 30 days? (just looking at the Zestimate histories from all the different links)
Posted on: 2011/8/3 21:56
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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I wanted to give them the benefit of the doubt here, and I felt bad that people referred to them condescendingly as "yuppies."
Then I read the part where she complained about not having enough money for the kids' fencing lessons. Fencing lessons. Now, I really have heard it all.
Posted on: 2011/8/3 20:45
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Hmmm...something funny going on with the tax assessment on this property: Quote: 2011 Taxes paid = $15,532 Tax assessment = $225,000 Seems that the property tax rate for homes with mortgages in JC is 1.7%, so this home should take in $23,290 for Hudson County ($26,030 @ 1.9% with no mortgage), not $15,532...abatement? That's a lot of mula to volunteer in protection money...errr I mean taxes  for a walk-up with no parking, don't ya think? 
Posted on: 2011/8/3 20:27
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Taz,
You can't live in your portfolio. Many people buy a home more to live in, raise their family and be part of a community. If their plan is to keep it for 10 years then it typically works out. It's only those who plan to flip who run bigger risks as well as those who buy more than they could afford. While there may, and I want to emphasize may be another brief dip in the local real estate market I would bet it will ricochet back up soon after. Because if it drops any more buys will start coming out of the wood work. Keep in mind interest rates where pretty high during the real estate boom of the 80s.
Posted on: 2011/8/3 20:08
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Me bitter? Nah I'm just happy I convinced my wife not to make an emotional decision and buy one of these depreciating assets back in 2004-2005 and stayed liquid in Gold/Silver and Swiss francs. I'd rather rent and have a brokerage account than one of those over-priced yuppy traps any day of the week!  If I sound incredulous, it's probably because I'm shocked there are still sheeple out there buying into the "It's different here" meme...
Posted on: 2011/8/3 20:03
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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If you're still breathing:
http://www.zillow.com/homedetails/206 ... -NJ-07302/38888560_zpid/#{scid=hdp-site-map-list-address}
Posted on: 2011/8/3 20:03
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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and even more:
http://www.zillow.com/homedetails/241 ... -NJ-07302/38889219_zpid/#{scid=hdp-site-map-list-address}
Posted on: 2011/8/3 20:01
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Well there are a lot more "suckers":
http://www.zillow.com/homedetails/231 ... -NJ-07302/72242694_zpid/#{scid=hdp-site-map-list-address} http://www.zillow.com/homedetails/293 ... -NJ-07302/38889684_zpid/#{scid=hdp-site-map-list-address} http://www.zillow.com/homedetails/258 ... -NJ-07302/38888905_zpid/#{scid=hdp-site-map-list-address} and the list goes on. Perhaps you're just a little bitter that you're not in the game. So you're more hoping for a bigger crash to make yourself feel better.
Posted on: 2011/8/3 19:58
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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I think that "estimate" is pretty far off... $441k for an 1850 sq. ft. single family home seems pretty cheap, even in this housing market. And "estimated" rent for about $1300/mo for a single family home that size is definitely not right.
Posted on: 2011/8/3 19:57
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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You mean more recently suckered!  Quote: Sold for $770K, Zestimate = 421K I'd hate to be the one on the wrong side of that bet!  
Posted on: 2011/8/3 19:54
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Posted on: 2011/8/3 19:50
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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FYI a "brick row house" in JC is generally is a "wood frame building" too, the bricks are just an improved facade... Here's some more comps for you then: Sold for $245K, right about where it was in 2001 Sold for $312K, below its 2001 est. price And here's a 3 story brick comp: Sold for $450K, WAY above where it was in 2001 @ $360K est. - Obviously going WAY lower in the future Seriously though, I could buy several of these cribs for ca$h, but why would I? Unless you're in love with JC, I see no reason to bother with depreciating assets when there are areas in the USA that will actually grow in the next 10-15 years (e.g. Austin, TX) v. ??? in JC... Moreover, I understand underwater homeowners made emotional decisions and are holding out for their "price", but reality will eventually wake them up, like the couple in this story Too bad the .GOV made the decision to prolong and deepen the pain by rewarding those that made BAD decisions and attempting to penalize savers and those that made GOOD decisions.  Until the toxic debt is cleared from the system, this nightmare will grind on...
Posted on: 2011/8/3 19:35
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Oh Jesus #OOPS#ing christ, could you please post without farking the CSS formatting of the page?
Posted on: 2011/8/3 19:10
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Your second link is a 2bed room 1 bath condo and your first is wood frame building as far back in downtown as you can get. These are not comps to a 3 story brick row house.
I'm not disputing anything you say about where the market is going, because I mostly agree. I'm just saying that unless their place is falling down around them it would sell for much more than the article states.
Posted on: 2011/8/3 19:06
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Here's your dream house pooky, looks like someone is already on it $319,000 That "home" was sub $200K in 2001, before the bubble, so someone has volunteered to be a sucka! Here's one in your beloved Hamilton Park hood: Asking $340K, Zillow Est. $292K P.S. I wouldn't bid over $200K for this dump, cause in reality the price at the bottom of the correction is gonna be in the $150K neighborhood, if you're lucky! P.P.S. The spamming of screwed home owners, errr i.e. bank financed renters, that bought during the bubble is quite transparent to someone not living in denial, and just because you're asking 500K+ for your "special" row house, it don't mean that you're ever gonna get it I'll put my decision to put ALL my ca$h into Silver/Gold in 2002-2003 against your dreams of flipping for a profit, via your liar loans, for all to critique! Got PMs?
Posted on: 2011/8/3 18:08
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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You may be right what the house will be worth in the future, but that is not what it is worth right now. True, a sucker truly is born every minute Personally, I've stayed liquid in PMs since the start of the housing bubble insanity, and when I'm done with my business in Manhattan (probably 2012 Q4), I'll be out of the Tri-State region in a heartbeat. Things aren't even bad here, yet.... New Yorkers Fleeing State Quote: ALBANY, N.Y. - Taxed-out New Yorkers are voting with their feet, with a staggering 1.6 million residents fleeing the state over the last decade.
Posted on: 2011/8/3 17:56
Edited by Webmaster on 2011/8/5 5:09:31
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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TaZMaNio,
Please post a link to a three story brick house in downtown Jersey City for $320,000. I am interested to buy if you can. Robin.
Posted on: 2011/8/3 17:51
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Taz,
You may be right what the house will be worth in the future, but that is not what it is worth right now. Similar places are selling for much higher right now.
Posted on: 2011/8/3 17:46
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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A. The value is way too low. 320k gets you a condo, not a 3 story house. That house should be over 500k even in this market. LOL! Looks like plenty of suckers still in denial! Before this current economic correction is over, the average price for JC cribs will be back into the early 90s range. That is if you can find anyone willing to fight their way through gangs of roving, feral predators... Good luck wit dat homeys!
Posted on: 2011/8/3 16:31
Edited by Webmaster on 2011/8/5 5:10:43
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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This is the problem:
"My husband is a very, very good man. Everything he does he does for us. But ? and here?s the BUT ? before the power went off he bought our two 13 year olds brand new iPhones for their birthdays." JC Independent Some people want things and save up and buy them when they can afford to buy those things. Other people just buy the things they want.
Posted on: 2011/8/3 15:40
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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I agree 1000%. I wish the banks would be forced or a Federal mediator had stepped in to force banks to settle these mortgages in a reasonable way. Unfortunately, it seems that the husband this article mentions, believes that his home is his most valuable asset and that if he can somehow cling to it it'll work out in the end. He should dump it for its current value, wipe his hands and walk away. It's a horrible situation but you have to know when to just get out.
Posted on: 2011/8/3 15:25
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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Actually, the bank doesn't want the property. They have more foreclosed property than they know what to do with. They just want the owners to pay the mortgage or for someone else to buy it.
I have a neighbor at my shore home who hasn't made a mortgage payment in nearly two years. But he's still living there, keeping the place in good condition, raking and blowing the leaves etc. etc. The bank sends someone buy every so often and I'm sure is very relieved their property is being well kept. This guy put a hefty down payment on this house and had a good job. He lost his job and couldn't get another one that wold make the mortgage payment. Now the place is deeply underwater. He's lost in excess of $100k and the bank is now sitting on a house that's worth less than $300k at this point. Why can't the bank now work a deal out with this guy like: House Value now $265k Dude's original downpayment $100k New mortgage $165k New monthly payments based upon a 30 year fixed at 4.9 for the life of the mortgage It's the banks that created this whole mania of borrowing against your home. Citibank had commercials that said "give your family the Christmas they deserve." Bank of America had commercials encouraging people to take out equity loans and lines to improve their homes. And it goes much deeper than that.
Posted on: 2011/8/3 14:10
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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I've read her column. She doesn't mention the second loan but she does mention that her family has fallen behind on their taxes twice. I think she said that they spent a ton of money on renovations to their place and she looked the other way while her husband did it. She struggles with pulling her head out of the sand about money. This is also taken from her column on the independent, look it up.
I think it's sad that we have a culture of overspending that leads to this. That said as a young person starting out I've learned a lot from the excess I've seen crumble around me. I am very careful with my money and have built up a safety net since my first job. I plan on doing things very differently for myself and my family, including waiting to buy property until I can put down a sizeable down payment and only buying what I can afford.
Posted on: 2011/8/3 13:46
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Quite a regular
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The bank wants that property. It's as simple as that.
During a period of unemployment, I fell behind on my mortgage, on a tiny condo on the West Side that is now underwater. There are two places for sale on my block for investment level pricing, and nothing has moved in three years. The bank wouldn't touch my place! My husband owns a home in Portland that has quite a bit of equity, and when Bank of America misplaced a payment, they were foaming at the mouth to take the property. He had to go around and around to prove he'd made the payment.
Posted on: 2011/8/3 13:43
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Home away from home
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I feel very sorry for these people. We shouldn't be so judgey as to ask, "Where did the money go." For one the article said the husband lost his job. Also we don't know that there haven't been health issues with one of the couple, their kids, a parent or sibling. Perhaps some other personal or family set back. But definitely do not assume they have done something frivolous with the money.
Our government bailed out Government Sachs. Why can't Government Sachs help these people. Banks have made mortgage modifications nearly impossible. One would have to be really tenacious to get one approved. These people are getting run over by the machine. In terms of the $380k appraisal, maybe that came from a bank or an unsavory realtor.
Posted on: 2011/8/3 13:35
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Re: Downtown: Having taken out huge second loan at height, couple now owes more than it's worth.
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Quite a regular
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I'm underwater in Lincoln Park, and I don't see nobody crying for me, Argentina. It's going to be five years at least before I could even break even on a sale.
Fortunately, Jersey is one of the states where foreclosure is handled by the courts. My attorney says it takes an average of three years until the sheriff shows up at your door. They should hire a lawyer. There are also government programs for people in foreclosure.
Posted on: 2011/8/3 13:27
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