Not unscathed by the subprime debacle

[dulgee]

Here is my Situation:

I bought a condo in 2005, i was able to put a substantial down payment (30%)and got a conventional mortgage with a very low fixed rate. sounds great right? well, now, over 2 years later, the sub-prime loan fiasco has caused the condo market to take a serious hit. An identical condo to mine in my building just sold for nearly 100K LESS than what I purchased mine for. what is worse, my city just raised my property tax based on its 2006 value. So, my equity is gone and my taxes are high, so it looks like I am stuck here. Even if i try to break even by some miracle, my local government has made sure to make my property as unattractive as possible because of the taxes.

Because the real estate market has been hurt largely by the negligent lending practices of so many banks (especially including my bank) I will not be able to sell my house, which was my plan for this year, in order to move my growing family into a larger private house. I tried talking to my lender's "Work-out" department, but they couldn't do anything to recoup my lost equity. They recommended I send a letter to their correspondence department which I am sure will bury it, and i will never hear anything from them.

I feel like i am being held hostage in this condo, with no possibility of escape.

So what can I do?

EY, NJWhat is the name of your state?

 

[seniorjudge]

Ask your lender if they will modify your mortgage.

A lot of lenders are doing that these days.

Deal with them only in writing.

 

[xylene]

No one is guaranteed that an asset will appreciate.

Taxes need not be fair, and as a citizen you have a voice in the setting of tax policy.

I can say I identify with you problem, but I must ask, should those many millions who have invested in banks and mortgage backed securities be expected to take a hit because your home experienced a short term decline in value?

 

[Zigner]

Sell for a loss or stay in the condo you chose. You're not being held "hostage" by anything but your own choices.
As for the taxes, you may be able to request a reassessment based on the lower property values in the area.

 

[Grandma's house]

Here is my Situation:

I bought a condo in 2005, i was able to put a substantial down payment (30%)and got a conventional mortgage with a very low fixed rate. sounds great right? well, now, over 2 years later, the sub-prime loan fiasco has caused the condo market to take a serious hit. An identical condo to mine in my building just sold for nearly 100K LESS than what I purchased mine for.

and this condo IS a comparable value no matter what

what is worse, my city just raised my property tax based on its 2006 value.

this is for YOU to prove to your county's assessors office by showing them at least 3 comparable sales, even if foreclosure sales as would any R.E. appraiser by LAW has to use to get your value, and so SHOULD they, I did this and it worked and ALL should because reality is this...2006 the values nationally were over inflated and now this country is in for a hard core reality wake up call. I even believe could go into a depression within 5 yrs.

So, my equity is gone

absolutely

and my taxes are high, so it looks like I am stuck here.

No...you have 2 choices and ONLY 2 choices regardless of what anyone else here tells you, get it on the market and HOPE you get what you owe on it and do it NOW, TODAY because tomorrow the value WILL be even less, or rent it out and risk the tenant faulting and you will lose it eventually in foreclosure anyway, ther are #8 causes for foreclosures and you ARE ON #5. You ARE trapped and need to move, if you don't now you won't be able to for many years to come if ever, these are called the walk away foreclosures, peoples jobs send them away and they ARE just leaving, not even behind in payments when they do either

Even if i try to break even by some miracle, my local government has made sure to make my property as unattractive as possible because of the taxes.

you CAN argue this, do it right though, I assisted my entire county in doing so and it WORKED

Because the real estate market has been hurt largely by the negligent lending practices of so many banks (especially including my bank) I will not be able to sell my house, which was my plan for this year, in order to move my growing family into a larger private house. I tried talking to my lender's "Work-out" department,

not a snow balls chance in hell

but they couldn't do anything to recoup my lost equity.

nope

They recommended I send a letter to their correspondence department which I am sure will bury it, and i will never hear anything from them.

you are right

I feel like i am being held hostage in this condo, with no possibility of escape.

get it on the market or rent it out

So what can I do?

 

[Grandma's house]

Ask your lender if they will modify your mortgage.

A lot of lenders are doing that these days.

Deal with them only in writing.

No... ONLY if in foreclosure and only if necessary in the event of a short sale. They are now only doing modification pkgs. to see what you can now afford and adjusting the rate down if it was an a.r.m. to where it began (the teaser rate) making it a 30 yr. fixed, refinancing and rolling in the arrearages. They cannot TAKE on these vacant homes like this.

They would NEVER ever just reduce the balance so they can move or sell their home. No one gets help while in good standing. He needs to get it on the market or plan on staying.

 

[CraigFL]

I see no legal question here, just a plea for help because of a situation that many homeowners are in.

If you ask for reappraisal, you may be rejected because there is a certain amount of tax money that needs to be generated and if you get reappraised, everyone should be reappraised downward which will just mean that they raise the millage and your taxes will be the same anyway.

In times like these, peoples plans get changed and they need to sit tight until the economy goes up again -- and it will.

 

[Grandma's house]

I see no legal question here, just a plea for help because of a situation that many homeowners are in.

If you ask for reappraisal, you may be rejected because there is a certain amount of tax money that needs to be generated and if you get reappraised, everyone should be reappraised downward

absolutely, and everyone SHOULD

which will just mean that they raise the millage and your taxes will be the same anyway.

Have you got gas lately? Also, while you are at it, pick up a Wall Street Journal today or go on line and read it as I have

In times like these, peoples plans get changed and they need to sit tight until the economy goes up again -- and it will.

Again...watch the news, read the papers and know this...it will not be going up again anytime soon. So go ahead AND "SIT TIGHT" and keep paying the unjust property taxes KNOWING you are paying far too much. Keep paying UNFAIR property taxes based on values that are not there at all and were way over inflated during a very short time in reality, that skyrocketed to ridiculous values in reality and now are plummeting correctly in the end.

 

[xylene]

Grandma

If you do not understand how to use the quote tool don't use it.

It only makes your posts totally illegible and has them appear even more nonsensical than the massive errors of fact and theory already cause.

 

[foreclosureguru]

I beg to differ.

Actually, it makes perfectly good sense.