Probably the most difficult task for a homeowner with a property in distress is the question of whether to stay or go. Because home ownership carries so much emotion with it, that emotion often clouds the rational thought process that might lead a person to conclude that the numbers simply don't work!
For a growing number of owners-particularly those who purchased with highly leveraged financing (90% and above) during the early 2000's- the loss of value caused by the recession and downturn in the housing market has left them "under water". Their mortgage balances are simply larger than the value of their houses. And the amount of time and often staggering amount of money they will need to spend just to get back to a break even point on their equity just doesn't warrant the expense.
For a good , unemotional look at the numbers try using this calculator http://www.payorgo.com/ . It's easy to get caught up in the 'what if ?' and "if only" of reliving our financial pasts. Remember that the only mistakes are the ones we fail to learn from.
If I can be of assistance in reaching a sound conclusion on how to approach your current situation, feel free to call or e-mail.
THE LEMONADE JOURNAL is the outgrowth of 20 years of experience in real estate and finance. In the aftermath of the mortgage industry meltdown, we are applying the adage "When life sends you lemons, make lemonade" . In addition to insights into the current market, the Lemonade Journal contains suggestions on how to cope with the present economic situation.
No comments:
Post a Comment