Monday, October 24, 2011


Initial Thoughts-
I'm one of the hard-hit homeowners in Arizona. Being able to refinance into a lower rate mortgage, even if I have to drop it to a 20 year loan, will save me thousands of dollars in interest payments. I'm not looking for a principal reduction. I'm not looking for a temporary fix. I like my house, I don't want to move. I am one of the responsible buyers- sure, we bought at the top of the market, but we didn't finance 100% of the house- we put down a large down payment. We make our payments on time every month. If the bank really wants me to stay in my house, make it attractive to do so. Otherwise, I walk, and they have yet another foreclosure/short sale on their hands in a flooded marketplace. 

So, banks, get your acts together, and start making refinancing a possibility for people like me. We exist. We are hanging on to our sanity by a thread. Our patience is wearing thin however. We will walk out on our loans if nothing is done.

1 comment:

  1. I don't know if your plan is for this to be your "forever" home or your age however I suggest that you think of your mortgage payment as being just that a payment and not tied to value. If you are plannng on making this your forever home... think about in 20 or 30 years where the market will be and what it will be worth. I am kinda sorta in a industry related to Real Estate and we deal with a few owners who want a short sale or a reduction in mortgage. The lenders/banks are not wrapping their head around the idea that you in a home is costing them less than if they foreclosed. Two suggestions... if you can swing it and purchase another home in your neighborhood for the lower amount. Then let your original house go back to the bank. The bad credit will hit you after you have purchased the new house. I remember when this scenario happened in the early 90's and the people that succeeded did so with this scenario. And whoever thought the market would go back up? Duh! Arizona is one of the worst markets as all you have is new construction. This is a good news bad news story.
    2nd suggestion is just sit if you can afford to and keep refinancing. Those of us who are close to retirement lost our retirement in our homes. At least your home still has some value?