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Jumping the Home Owner's Ship

By
Real Estate Agent with Crystal Coast Broker # 305625

I read an article that talked about the increase of foreclosures and bankruptcys in regards to homes. The article made the follow suggestion. "Why would a homeowner want to pay for a mortgage on a home that is not worth that mortgage?"

When people buy real estate there is NO Risk!!! None! Guaranteed. IF YOUR IN IT FOR THE LONG HAUL!!!! (Point Stressed Enough?)

Yes, the $550,000 dollar home that you purchased last year may only be worth half that now. (If you live somewhere other than Utah. We are still seeing a steady market with only a Winter reduction. I'll get back to you in the Spring.) Does that mean it will always be that? No it will appreciate again. It has too. The demand of homes will increase again. Market Values will increase. As an agent I have watched California bounce back at least 3 times. They will do it again. That is the way real estate works.

As cognitive beings will have a VERY bad time at predicting the future. When our tummies our full how many times have you said. "I will never eat again" Come three hours later, there you are eating.

If you can afford to...why would you jump home owner's ship. Loss of job, relocation, ok I get it. But not because the value of your home decreased. I could be wrong.... but to get your credit back in seven years.. wouldn't be better to hold on?

Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Debbie,

This can be a big mistake imho for many. In the early 90's many owners walked away even back then...a few years later they couldn't even buy the same home back.

Mar 04, 2008 03:41 PM
Richard Parr
ADT Security Services - Slidell, LA
Home Security Specialist - Greater New Orleans, Louisiana
The key is the long-haul!  Most people do not buy a home to flip.  They buy one in the neighborhood they want with the schools they want for their kids.  Then, 15 or 20 years later, they start looking to downsize or maybe for the dream home.  People need to look at historical numbers and see that real estate is in fact a no risk investment...again reiterating "over the long haul."
Mar 04, 2008 03:52 PM