If you're seriously underwater your best bet is to consult a lawyer, then stop paying your mortgage. Live rent free for a year or more until you get an eviction notice (that's how long it takes by me). SAVE that money in a safety deposit box or large safe. Then go rent a house for 2-3 years, keep saving your money (hopefully you'll still have your job). Then buy a house 3-4 years from now at the current market value which will be 15-25% lower than today's home values.
Every market is somewhat different. Here in Portland, Oregon the values are still dropping and will continue to for at least another year. Should you buy? As an investor in Portland probably not. As a owner occupant possibly. Here's the deal... Interest rates are hovering around 4.75%. Take a look at an amortization table and compare the amount of interest you will pay at 4.75% vs 5.75%. You'll find that it's a better investment (long term) to get the lower rate vs cheaper house.
Yes it may be cheaper to have a monthly payment that is cheaper than renting if one purchases a foreclosure. However, until the market is on an upward trend buyers will be stuck in their purchase and will need substantial capital in order to secure a good rate. I personally think the scaring done by the crash will affect the market for 7-10 more years
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If you're seriously underwater your best bet is to consult a lawyer, then stop paying your mortgage. Live rent free for a year or more until you get an eviction notice (that's how long it takes by me). SAVE that money in a safety deposit box or large safe. Then go rent a house for 2-3 years, keep saving your money (hopefully you'll still have your job). Then buy a house 3-4 years from now at the current market value which will be 15-25% lower than today's home values.
RayAir1 9 months ago
Every market is somewhat different. Here in Portland, Oregon the values are still dropping and will continue to for at least another year. Should you buy? As an investor in Portland probably not. As a owner occupant possibly. Here's the deal... Interest rates are hovering around 4.75%. Take a look at an amortization table and compare the amount of interest you will pay at 4.75% vs 5.75%. You'll find that it's a better investment (long term) to get the lower rate vs cheaper house.
livezesty 1 year ago
"pick up a home below market?" This is the market and it is still declining.
oracleturts 1 year ago
Yes it may be cheaper to have a monthly payment that is cheaper than renting if one purchases a foreclosure. However, until the market is on an upward trend buyers will be stuck in their purchase and will need substantial capital in order to secure a good rate. I personally think the scaring done by the crash will affect the market for 7-10 more years
oracleturts 1 year ago
Livezesty, I like your video Could you please provide the reference of your findings, the information sounds fair and somewhat accurate. I
I currently do home designs and more info can always help.
Take care
olhatube 1 year ago