I haven't laid this out - for myself - in writing for a while. Concerning my home and whether to stay in it or walk.
What I have been watching, over an extended period of time now, is the value of my home. More specifically, the dramatic decrease in the value of it and the fact that I am in an under-water mortgage situation.
Right now, according to valuation data, my home is about 63k underwater. Amazingly, if you do your homework and search a little, you can get a very nice home in these parts for 63k. In fact, you can score REALLY nice properties for even less than that.
The home values in the Phoenix metropolitan area continue to take a dive. There are so many vacant homes right now that it's unlikely that this situation is going to reverse itself anytime soon and worse, my home's valuation is going to continue to take a nose-dive. At some point, I am telling myself, I am going to have to take a deep breath and do the short-sale route. The deep breath part is because it would mean a dramatic change in lifestyle at home unless I could, somehow, find something, somewhere, that would accomodate for some of the things going on such as have Great Danes.
What I am starting to do now is get my mindset to change about all of this. Staying in this home seems a futile waste. I will be living in a home, at some point in time that is probably not too far off, that is worth less than half the money I owe on it.
I guess I'm not really interested into going into the things that I have been reading - some of it for some time now - that may show that the economy is going to go much further south than anything we've seen yet, I am going to sit back and wait and see what happens. It won't be long, if these predictions are true.
I am also struggling with having to rent rooms to stay in this place. After these last 2 slobs moved out and left their - my - rooms in a complete and total disaster, I ask myself why I should even consider continuing on with this. I contacted the guy today that wanted to move in - he is moving in Thursday, at least that's what he says, I'll find that out for sure after Thursday comes and goes and whether he's here or not. Good people are nice to have around, the rest of them?
The reason I write this now is to force myself to face a potential situation: having to rent a property somewhere. Living under someone else's "authority". I have spent considerable time in mulling over the stay-or-go thought and up until recently had convinced myself that staying was the better alternative. But looking at the economy and continuing, falling home values, I am not quite so convinced anymore. When, if ever, will the price of my home actually rise to the amount, at the very least, that I owe on it?
I was prepared to stay in this home for a maximum of 5 years and then sell it and move on. It's been 3-1/2. I'm not going to be calling my lender tomorrow and tell them to start whatever process it is for short-sale'ing the home. They DO have such a process because I have asked them about it. My next question to them is going to be why they are so willing to short sale a home and take a loss on it rather than doing whatever to keep the homeowner in the home. They are on just as perilous an edge, looking down a cliff, as everyone else is from my perspective. But, maybe there are government guarantees or the mortgage insurance pays them back? I don't really know. I don't get straight answers about this stuff when I ask, they decidedly dodge the question and give a nothing answer, as evidence by the "answer" they recently sent to me concerning questions I had for them.
They did not answer the questions, excepting for one and that answer was a nothing answer, in reality. It's a slippery slope and not telling where solid footing might land. This is far from anything even remotely associated with a dream home and frankly, the thought of getting out of it becomes more and more viable on a daily basis. The 2 thoughts to contend with: 1. credit rating disaster and 2: renting.
I'm starting to think about it now as a real alternative, is all. Not long ago I wouldn't even give it a second thought: stay in the house regardless.
3 comments:
Wednesday
It "only" got up to 114 yesterday. Blasted hot, all I can say about it. Allegedly going to get to 116 today.
Potential new renter? I called him yesterday. I send him an email here and there on the updates, but that is over with. I told him he could move in whenever he wants, as Mark pretty much finished the clean job yesterday and the only thing left to do is buy a light buy and a throw rug to cover a very small stain in the carpet that we could not get out of it.
The Army Reservist trashed the mattress as well. At least one side of it. Fortunately, the other side is still in perfect condition. So, we flipped the mattress and that's that.
I just got done buying a new mattress for that other room, I don't want to have to buy another one for this room already!
I would go into the political scene, but there isn't much change. Biden sticks his foot in his mouth again. Tripoli has been over-run by rebels and Qaddafi is still mouthing off. Who knows what Obama is doing and - who cares.
Anyway, that's it for this morning,
G'day.
ben
You DO have a dilemma. As a Landlord you have far more rights than you would as a tenant, and for now, you can get rid of people you don't want to live with.
As to the 'value' of a house...that is only an issue if you are buying or selling it. If you were happy and comfortable in your current situation, I would say it really doesn't matter what the 'value' is on paper. But often, you are NOT happy with your neighbors, or the 'hood.
And you are sure right about the danes.
fin
No, there isn't any doubt in my mind that if I could live in a different neighborhood - one without the methheads, thieves and dealers - I would be far happier in my living space. I cannot even reach out to any of these people around me. The house across the street is empty and for sale. Now, the house next to it is also for sale. The house on the either side of it has people that want nothing to do with anyone in the neighborhood. Next to that is a very old lady that isn't entirely all there - she has called police on several neighbors because of her illusions. Next to that is the house where the 30-something meth head is living with his parents. Across the street from him is the "bully" who is no longer saying ANYTHING to me - my doings, I finally put a stop to it - he is the guy that spent 9 years in prison for dealing drugs, yes, out of the house that was on the same property at the time.
Then there is the guy next door. His house burned down last winter. He is the used car salesman that uses our street to store all of his cars when he is here - during the summer he is at his property in Michigan.
2 lots behind me. One is vacant and full of trash. The other lot is an old mobile - paint peeling, trash laying everywhere, overgrown with weeds. Same house that has it's occupants feeding stray and feral cats.
The other side of me is the illegals. Trash. @$$holes. The ones that called the police when one of my tenants parked 7 inches beyond my property line on the street (which is, btw, NOT illegal, at least not in these parts).
I could go on, and on and on, really. I now keep to myself. I don't talk to anyone around here because I either never see them or they are people I want nothing to do with. I am not totally unhappy here - I have eliminated some problems by simply taking the same stand those people were taking and shoving it right back down their throats. For a long time, I just took it, not wanting neighbor wars, but I can only take so much.
I am thinking I could find a house or even a decent mobile for rent somewhere that would not be an apartment situation. I would also love to move out of Phoenix and never live in this city again. There are a lot of things running through my head right now, but with me, it's a process that can take some time in thinking and evaluating and analyzing before I come up with a definitive answer.
ben
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