I spoke with a woman from Arizona this morning who purchase her home 3 years ago for 256K. Because of the many forclosures in her community her appraised value is lower than 75K.
Is it RIGHT for her to be paying a 256K mortgage knowing that the home is only worth 75K?
I spoke with another guy today in Michigan who purchased his home 2 years ago for 156K and it only appraised for 26K.
Many people do not understand how bad some sectors of our Countries Real Estate Sector really is.
I get calls everyday from people with the same problem - Of course all of these people do not have an FHA or Fannie/Freddie Mortgage, so the new government programs really do not help them. Many tell me that they should just pack up and let the lender deal with the problem. Some of these people did try to get modifications from the current Lender but the terms really did not solve the real problem - that is if they were even approved for a modification.
I am sure many if not all of you real estate professionals have come across this same situation.....How do you think people should cope with such drastic devaluations in their neighborhood? Put youself in their shoes.
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