Reply #449: As someone whos property is devalued due to others walking away [View All]

[quakerboy]

I say good for you. Although, I am with the others who said stop paying, stay free until they can legally get you out.

I bought a condo last year. It was a sound financial decision, I believe. My total payments for a three bedroom, including HOA, mortgage and insurance, are $4 more per month than the one bedroom apartment that I was renting (the cheapest sans rats apartment that I could find).

My neighbor has the exact same condo I have, mirrored. She bought in 2007. Her contract is for more than twice what I paid. She is thinking about walking. She wants to, but has a hard time, as she has never made a late payment, and is the kinda person who has a hard time with that. She did what you did, 100 % financing. Given that another unit just sold for half what I paid, no bank will look at refi the amount she has outstanding. And because she makes no late payments or anything, the bank refuses to work with her on a loan adjustment.

Who loses if she leaves? The bank loses because they refuse to work with her. She loses because her credit is slammed. Not me. Well, sorta me, because my property values supposedly go down. But that only counts if I want to sell right now. But as a responsible buyer, I bought a home with a mind to what I could afford and what was a good financial choice for me. Not speculating that it would be some great investment that would increase in value so I could flip it. My financial choice was based on a 30 year fixed, when rent will likely go up. My savings is in getting it paid off, no payments left, where as rental always has a payment.

So, to any of your detractors who complain about people like you harming their property values: Why are you so irresponsible/uninformed that you are speculating on property without knowing the risks? You should be more responsible and diligent, buying only what is an actually appropriate deal for your budget. Naughty naughty bad owners