I am trapped in my home, and so are millions of other Americans.
I am not underwater by any means, however, I would not be able to sell without losing thousands of dollars of hard earned down payment. Factoring in taxes, Realtor commission, and the necessity of lowering the price thousands below the sales price I paid in order to compete with other comparable units. I would lose 10-15K in order to insure a good chance of a sale. (I know in bubble markets like California this is a laughable sum, but to me this is a lot of money)
I have a 30 year fixed loan, and the price I paid is actually LESS than comparable rent in the area. Nonetheless the psychology has turned, and people have so much fear of buying a house right now that there is simply no way I could sell without wiping out most of my 20% down payment equity.
I am getting married next summer, and I see an endless amount of great deals on much larger houses I could afford and would love to move into. That however is just a fantasy because I am trapped, I am a prisoner to my mortgage and a victim of the housing bubble collapse.
I can't move up and buy a bigger house, because my down payment, which exists in the form of equity in my current home, would be lost by selling the condo at market value.
I can't be comfortable in my 1 bed, 1 bath condo because it's really two small for 2 people and all of our stuff once we get married.
I am trapped, and that is what inspired me to create this blog.
That is my story. What is the reason you come to this website?
Sunday, November 11, 2007
Posted by Chris at 12:36 AM