Ombud
Junior Associate
Joined: Jan 14, 2013 23:21:04 GMT -5
Posts: 7,600
|
Post by Ombud on Jun 9, 2015 14:17:38 GMT -5
movingforward, IMO / experience, parents always worry about their children so you can say it all you want, we worry want them to be better off than us
|
|
happyhoix
Distinguished Associate
Joined: Oct 7, 2011 7:22:42 GMT -5
Posts: 21,442
|
Post by happyhoix on Jun 9, 2015 14:58:37 GMT -5
I lost about 30k in real money (not hypothetical) on the sale of my Condo. I had to bring money to closing Phoenix's scenario was very common in the Phoenix (AZ) area. Many of DH's colleagues were forced to sell at a loss to relocate out of state.
We were very lucky that we anticipated that we might have another relocation and structured our financing for an extended time as a rental. Although we were lucky that the house probably only lost about $25k at the low point what we didn't anticipate was a 25% drop in rental values as investors swooped in bought foreclosures and flooded the market with rentals. We had a negative CF property for about 3 years.
Our situation was mild compared to many others and we were able to maintain a good income stream because we were willing to relocate out of the country for a while. Not everyone had that option.
I knew a couple that transferred from CA to TN. They bought their CA condo at the height of the mortgage balloon, and when the CA housing market collapsed, they were left with a condo underwater by about 100K. They wanted to relocate but couldn't afford to take the 100K hit on the sale of the condo. Considered renting it, but couldn't rent it for enough to cover the monthly mortgage payment. These were two young engineers, so they weren't poor, but they wanted to buy a new house in TN and couldn't with the condo hanging over their heads, so ultimately they let the bank foreclose. We're in a LCOL area and didn't see such a drastic change in the value of our home, but those people in the high areas ended up under water, sometimes for a lot of money.
|
|
AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
|
Post by AgeOfEnlightenmentSCP on Jun 13, 2015 19:10:33 GMT -5
Seems pretty outrageous on the face of it. The company would have failed were it not for government largesse, they were rescued, and they didn't make enough money? How much would they have made in the alternative free-market scenario?
|
|