Has your home lost value? Do you think that banks are "just as scared as you?"

[yardwork]

Mitt Romney said yesterday that "banks are just as scared" as we are.

http://www.cbsnews.com/8301-505245_162-57365607/romney-talks-housing-ends-up-defending-banks/

My home has lost a lot of value since I bought it four years ago. Fortunately, I still have a job and can afford my monthly mortgage payments. Fortunately, my home is not worth less than I owe (partly because I was able to pay 20% down). I'm not being foreclosed on or forced out. My situation won't make headlines, I'm lucky. But my home, like so many others, has lost a lot of value. If I had to sell now, and were able to sell (another big question), I would lose what is to me a lot of money. (The amount is nothing to Mitt Romney. He thinks that $350,000 in speaking fees is nothing.)

I bought at the height of the housing boom. I didn't know that it was the height of the boom. thought that I was being careful. I bought less house than I could afford, staying carefully within my means. But it's turned out to be a poor investment. Now I know that Mitt Romney and his buddies, the banks-who-suffer, knew all about the over-inflated housing prices, and they manipulated things so that they personally made millions of dollars off the crash, while ordinary people like me are left holding the bag.

I wonder how many people's homes have lost significant value in the past few years. How does this make you feel?

[niyad]

1. I hope that remark was greeted with the hysterical laughter it deserved

[Stinky The Clown]

2. He is so out of touch words can't express the distance.

[CountAllVotes]

3. the people across the street from me bought at the high

They paid $320,000.00 for the house and it is not that great of a house. Now it is worth less than $230,000.00 at best.

The owners of this house took out a huge loan (bought in 2005) and they are now underwater on it. They are angry is their status, not that I blame them.

That said, it seemed absolutely ridiculous to pay $320,000.00 for said house at that time to me. Apparently there was a list of people waiting to buy it at that time. Now there are no buyers.

[yardwork]

6. I bought in a much lower price range. I thought I was being careful.

Housing prices tend to stay high in my town. I bought close to work so that I could keep my commute short. I bought near my children, in a safe neighborhood. I bought an older, fixer-upper condo. I've installed new HVAC (the original was decades old), new windows (the originals leaked and didn't lock), new electric box (not to code), etc.

I did not buy more house than I could afford, or buy a grandiose big house, or take out a jumbo loan, or anything like that. Despite that, I've been screwn while Romney and the rest of the 1% rake in the millions.

[CountAllVotes]

12. you have my condolences

No one knew how high prices were going to go at that time. However, I have noted that a person I know that is one of the 1%'ers out there owns 3 homes and NONE of them have declined greatly in value which I find amusing at best.

It is like the rich are still being propped up by their own. They have no worries and I suspect this will continue for some time until the working class are gone and they have no more maids/servants, etc to wait on them.

As for me, the house I live in I bought about 12 years ago. It was a foreclosure and no one would buy it. I got a deal on it and have since time paid it off so I own it. It is not worth $320,000.00 yet at the peak of the boom it was said to be worth $310,000.00. was all I could say at that time and no, I never once considered selling/moving.

A home is something you live in, not something you buy and sell and trade.

[yardwork]

19. I agree about the rich propping up their own. If I had spent more my house might have devalued less.

It turned out that being frugal was not financially savvy - the houses in my town that are maintaining their value are the ones in higher price ranges. Buying a condo was my big mistake - their value has plummeted.

However, I don't have to worry about a huge mortgage, and as long as I stay in the house, its market value doesn't really matter to me. The problem would come in if I had to sell in this depressed market. People who get laid off or moved with their jobs have to sell.

[Tansy_Gold]

4. We'll know the banks are scared when

they change their policies. If they aren't changing, they aren't scared.

My home has lost about 50% of its "value" since I bought it in 2006, right at the very peak of the AZ housing boom. I was very fortunate -- I had sold a paid-off home at the same time, got top dollar for it and turned around and bought this place. Free and clear. So I'm not concerned about the drop in value; it helps my property taxes a little.

But I *am* concerned about what all this financial hankypanky from the banks has done to millions of other people, those who are struggling with underwater mortgages, those who have already lost their homes, those who are worried. None of this is right. And then to see that smarmy asswipe Romney say $347,000 isn't a lot of money? I just want to slap him. Seriously.

And especially when he comes up with a flat out bullshit lie like the banks are scared. Is *he* scared? Of course not. And he's in the same class as the bankers. They're all sitting in the catbird's seat. fat and comfy. Not a care in the world. Scared? Ha! They're laughing their asses off.

[yardwork]

10. Exactly.

[Nuclear Unicorn]

5. Romney's statement was tin-eared and oafish but essentially correct

The banks want your home to have value. Until the mortgage is paid-off they still own it and it is considered asset. Their cumulative assets (deposits, mortgages, etc) allow them to do things. If they lack assets they have less working capital as they must maintain reserves. That means fewer business loans, fewer new mortgages, lower returns on deposits. That reverberates to their ability to attract customers. Nobody wants a bank that cannot provide services because its under capitalized. CEO bonuses notwithstanding workers, consumers, homeowners and businesses all rely on banks and banks rely on them. Banks want their customers to profit because those profits get put into -- BANKS.

Still, for someone reportedly as slick as Romney he sure did flub a soundbite. I was hoping Gingrinch would be the nominee since he would be an unending font of verbal missteps, poorly framed arguments and outright obnoxious buffoonery. I was worried Romney would be too rhetorically polished. This OP makes me feel better.

[yardwork]

8. That's true up to a point but banks are also invested in the foreclosure industry.

Romney made millions when the housing market crashed. He's heavily invested in the foreclosure business. So are many of the big banks. So they win when we lose. It's a rotten system.

[Nuclear Unicorn]

15. It only helps to invest in a product you can move

With foreclosures hitting like a Japanese tsunami there is a decade-plus housing inventory surplus. I asked my boss, who works in development and project management if it would be worth investing in foreclosed homes to rehabilitate and rent/sell and his reply was, "Yeah, in about 15 to twenty years." He says (jokingly) the best cure would be a nationwide arson spree, it would've been cheaper than TARP and actually address the problem. That's how deep inventory is. My dad works on the new home construction side and he's definitely taken a hit.

I read on DU not long ago a stat that we have 3 vacant homes for every homeless person -- not entire families, each individual PERSON -- in the US.

To invest in that sort of surplus seems like you're just throwing money down a hole. I guess we could assign "business acumen" along with "rhetorical polish" to the list of things Romney doesn't have, after all.

[pamela]

7. Mine lost another $6000 last month.

I've been watching it closely because we want to put it on the market. It was damaged pretty badly in the earthquake and we spent a a small fortune on repairs and upgrades in the past 5 months since the quake. Now, I wish we had just sold it as is after the quake. I'm anxiously awaiting the end of the month housing numbers in hopes that it has recovered a bit. Otherwise, all that money, and the unbelievable stress, was a complete waste.

[yardwork]

9. I'm so sorry. I think that we are a huge silent majority.

The people who are being foreclosed on and forced out are worst off, and they are making headlines. But there are millions and millions of us in the U.S. who have stories like yours. It's a massive issue.

And so many people are being laid off work. They can't make their mortgage payments anymore so they have to sell at these deflated prices.

[pamela]

13. Thanks. We're lucky in a way. We still have equity.

We've bought it 14 years ago so even with the bad market, it's worth more than we owe. It's just scary to watch it continue to go down each month. It's so tempting to wait in hopes that it will recover a bit but then you risk having it go down even more. We had been counting on this equity to fund a semi-retirement dream and at this point I'm not sure it is enough.

We're lucky though. We're not at risk of losing it but after the ordeal we went through with the quake damage I just want out.

[pinboy3niner]

11. If they're not scared, they're not paying attention. nt

[Broderick]

14. My home value according to Zillow is down over 40%

This pushes it to near negative territory on my mortgage.

The bank should be worried that home prices are putting people in the red because it costs us all when they foreclose and can't recoup the note value. The bank bailouts are killing generations ahead of us in debt. I am not one of those that got pushed into a loan I couldn't afford though and there are many that were lied to and now can't afford it and are upside down in a massive way. The banks should be working with people to salvage these loans through hard times so that people can get their ships righted. Pulling the trigger on foreclosures is killing everyone. And they are doing it fraudulently.

[TwilightGardener]

22. I won't even look at Zillow. Unless and until I have to sell, it's just better not to know.

[Broderick]

23. I made the mistake

heartbreaking.

[yardwork]

25. I'm so sorry.

I inquired of my realtor about the going rates for condos in my neighborhood. That's when I found out how much my condo has dropped in value since I bought it four years ago. I honestly wish I didn't know.

[Broderick]

27. It makes me feel stuck

and for how long I don't know. Basically, it's a case where we can't afford to sell. I don't want to sell and I am happy with the home and where I live, but if for some reason I had to move for my wife's career or something we can't easily. It's like being trapped, but only in theory cause we aren't moving at this point.

[yardwork]

29. I feel exactly the same way.

[hobbit709]

30. According to Zillow mine's worth $101K, I think it's really worth about 90

Last edited Wed Jan 25, 2012, 05:15 PM - Edit history (1)

But the county is valuing it at the boom rates and says 130K. In 1990 when we bought it it was 36K. Taxes were $400/yr total. Last year's taxes were $2800. Of course household income dropped about 70% since then.

[Broderick]

33. OUCH

Sorry to hear that.

Our property taxes went up over the years substantially, but the value is below where it was when we bought it. One year they hold the line on assessments and the rate goes up. Next time they say they are holding the rates steady and the assessment goes up. Can't win for losing.

[yardwork]

34. That's the other thing. The county values my condo at $20k more than its market worth.

I'm going to appeal that, documenting my appeal with zillow.com valuation and the comps that I found online.

Nationally, this stupendous drop in home values has had a negative impact on local tax collections, of course. Another big problem.

edit spelling

[slackmaster]

16. I bought mine in 1994. Even with the recent drop, it's still worth about 3.5 times what I paid.

Fannie Mae, the owner of my loan, isn't worried.

Bank of America, which services the loan, isn't worried.

I'm worried about losing my job right now, but not my home.

[ieoeja]

31. Similiar here. Bought in '91. I will pay it off in March.

Not worried about losing my home. Not too worried about losing my job either. Without the mortgage hanging over my head, washing dishes sounds like a great way to earn my way should that be necessary in the future.

[lonestarnot]

37. Nope no dish washing if no food to put on those plates unless someone gets the bright idea to sell

moonpies. Guess that's why moonface wants a moonbase.

[madrchsod]

17. my house has`t lost it`s value

in fact it went up do to new windows and heating/cooling system. i live in a very stable neighborhood with below average turnover on existing property.

another factor is i borrowed from a savings and loan company that does not sell their mortgages and works with homeowners who fall behind on payments. they have the lowest foreclosure rate in the area.

[yardwork]

20. That's good. Did you buy some years ago, when the prices were lower?

The money I spent on new windows and HVAC doesn't help the value of my investment at all right now, as the market has dropped so much for condos in my area. This has nothing to do with my neighborhood but is a region-wide issue.

My original mortgage was with my credit union. When I refinanced a few years ago the new company sold my mortgage to Bank of America. Imagine my delight.

On the plus side, I have a safe and comfortable home and as long as I have a job, I can afford the reasonable mortgage payments, taking advantage of the low interest rates. Many, many people are much worse off. I think that we have a silent epidemic of people affected by this housing boom and bust, and it makes me mad that Romney and a few others have made millions while creating this mess.

[madrchsod]

35. yes i did.

the prices in my city has been pretty stable during this crap.

[pipi_k]

18. I feel very fortunate...

When we bought our home 16 years ago it was tiny and went for less than $90,000 even with over 8 acres of land.

We doubled the size of the house, added a shed, a covered car port, and a sun porch, and made some other improvements like vinyl siding, etc.

In 2003 the value was nearly $250,000.

Then it fell, and the lowest it was ever valued since then was about $147,000 but that has risen since last year.

Even with a second mortgage the value is still more than what we actually owe on it (about $117,000), so I do feel very lucky compared with a whole lot of others who owe more than what their homes are worth at this time.

[Lint Head]

21. I want the bankers to be as scared as hell. There needs to be a change in the system period and

they need to fear for their existence.

[Adsos Letter]

24. Ours is still valued at twice what we paid, but only half of its pre-collapse high.

We are very fortunate to have strong, stable income, and a mortgage that will soon be over.

[William769]

26. My house has lost a lot of value

As most have in Lee County Florida. Luckily I only have 3 more years of payments. So when I sell (and I will) I will take a loss but at least what money I do get won't go to anyone else.

[kcass1954]

28. They had better be afraid. It might be theirs one day soon.

We did a refi in 06 with a 51% LTV. I believe we are under water now.

[sad sally]

32. Doesn't make your situtation better, but here's some insight from 2008:

Hyperinflation and the Housing Market

The Federal Reserve under Ben Bernanke began aggressively lowering interest rates at the end of 2007 in response to the severe economic downturn caused by the collapse of house prices and the related difficulties falling house prices had on the banks and other institutions that made loans using houses as collateral. Many are concerned that these policies will ignite a period of hyperinflation in the United States.
-----
Currency devaluation and inflation eats away at the buying power of money. Although this may support house prices at marginally higher nominal price levels, real price levels, the price level adjusted for inflation, will remain unchanged. Imagine if the Federal Reserve allowed inflation to cut the spending power of the dollar in half by 2011, and imagine if this level of inflation allowed house prices to remain stable at 2006 price levels for those 5 years. Many homeowners would feel relieved their homes did not decline in value, but this relief would be an illusion as the buying power of their money tied up in the value of their houses was cut in half.

Article Source: http://EzineArticles.com/1825213?du

[DevonRex]

36. We are fortunate in that

we bought way before the bubble started. So, we are still ahead. It really really sucks that people's savings and equity are dependent on basically when they bought, and even just how old they are
- which could easily have determined when they bought. It's disgracefully unfair.

[lonestarnot]

38. It really really sucks that people's savings and equity are dependent on basically when they bought,

Yeah that sucks! The horrible bastards need to pay for what they've done. I want all their fucking money. Every dime! And I want them in fucking jail!

[DevonRex]

39. I would like that, too.

I also know that it could take years before that will happen. Bankers know how to hide their tracks. That's why they're not afraid.