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Home went down in value? The bank's problem, not mine

By
Mortgage and Lending with HPM Financial LLC
Home went down in value? The bank's problem, not mine See below for a sample e-mail I receive: 


Dear Hayden, I bought a home a last year and right now I owe $20,000 more then it is worth. I don't like the feeling of being of having this huge debt over my shoulders. Although I can afford the payments, I could now rent a similar house for $500 per month less then I am paying on my mortgage. Since the lenders are receiving a lot of foreclosures and short sale requests right now, do you think I would qualify as well? It would save me a lot of money. Do you think it would hurt my credit really bad? Answer: 

Dear Un-Proud Homeowner, I would advise you take a look at your loan documents you signed recently. Although you might believe that you bought your house strictly for an investment, the documents you signed said otherwise. Are you telling me that you bought your house with a condition that you are only willing to make payments if your house is appreciating? I would call your lender up and tell them the truth, and listen to what they have to say. My opinion is that people like you are ruining the housing market and causing the banks to lose a fortune. This means that everybody else is going to pay for your unwillingness to maintain your agreements. I hope that you really take a look your life and your situation, and have some integrity. 

Comments(7)

Andrew Trevino
ADT Real Estate - Wilkes Barre, PA
Wilkes-Barre Homes For Sale
I hope you didn't send that e-mail, but I appreciate your frustration. People don't buy houses to make a home of them these days. It's a business decision that regrettably went bad for quite a few. Like an uncomfortable marriage, it's easier to drop it than it is to work things out. Welcome to the disposable world we live in.
Oct 21, 2007 02:49 PM
Randal Keberlein
Weichert Realtors, Precision - Kenosha, WI
You disclaim liability?  So do I.  I am not sure that does any good.
Oct 21, 2007 02:50 PM
Hayden Gerson
HPM Financial LLC - San Diego, CA
Andrew, these guys are ruining the market. They have proven that their word is worth nothing. I am in the banking industry, and these people should be happy that the bank trusted these people. They have proven to be untrustworthy. They are being lazy and are very common unfortunatly.
Oct 21, 2007 03:12 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info
It's a shame people don't regard owning a home as the better alternative to renting and throwing money away.  If you plan to live in that home for many years, and you can afford the payments, it doesn't really matter what the appraised value is does it?
Oct 21, 2007 03:18 PM
Hayden Gerson
HPM Financial LLC - San Diego, CA
You have the right idea Georgina. To many people are homeowners that should not be. It is a real shame.
Oct 21, 2007 03:20 PM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

I can add that email to the "I've seen it all..." pile.   The pile is growing taller every day.

There are some people who don't realize that real estate is a long term investment.  They bought a home with the thought process that it will appreciate rapidly every year and they'll always be sitting on the proverbial gold mine. 

Oct 21, 2007 10:13 PM
Judi Glamb
Coldwell Banker Hearthside - Hellertown, PA
Associate Broker, ABR

I love it - it's not MY problem.   As in any investment there are risk and ups and downs.

Oct 22, 2007 01:01 AM