How badly has your home value been impacted by the recession?

[lizaanne]

It varies by area certainly, so I thought it would be interesting [[if this has not already been done) to see where you were before, what you owe, and what it is worth today.

We live in south Hazel Park, near the edge of Detroit on a pretty nice street near a school. Two years ago we had a real estate appraisal of our home of $125,000. We owe $92,000. It is now worth probably about $55,000. It is one of the nicest and largest houses on the block, but that hurts as well when there are six empty homes on our one block alone and some of them are going for in the low $20,000s.

It breaks my heart. All my equity gone, and now I basically am a renter from the bank.

We will probably short sell and move soon out of state.

Anyone else?

[Bobl]

Got a reverse mortgage on an elderly parent's home in Eastpointe, to help with care expenses and keep the parent in the home. Got nearly $100,000 in monthly payments from the mortgage bank. After the passing of the parent, house sat vacant for eighteen months. Purchased, for $14,000, months ago...

[Blueidone]

Owned a home in Roseville...largest in the neighborhood...5BR, 3BA, new carpet, freshly painted, hardwood floors in 2 bedrooms, ceramic tile in kitchen & dining area, finished basement, laundry on 2nd floor and in basement, office in basement with Steelcase furniture, 21/2 car garage on a large lot. Bought it in March of '04...paid $165,000. Went into foreclosure and short saled it last year after it was on the market for 1.5 years for $75,000. :-[[

[gazhekwe]

We live in a high end neighborhood in Southfield, but have one of the smaller houses. It was built by the builder for his own family. When we bought it, the neighborhood was hot and we had to bid over the asking price to get the house. Fortunately, it has not gained as much value as the larger homes, and has not yet dropped below our initial purchase price.

We started at $130,000 in 1990 and are now at around $168,000. That doesn't mean it would sell at that price, but that is the appraised value. It was up around $290,000 at the height of the bubble. Some similar houses nearby, in worse shape, have sold in the $90s. Luckily we are free and clear on it, and don't plan to move.

[kryptonite]

I moved into Lathrup Village seven years ago and paid $170,000 for my house. I have done at least $15,000 worth of upgrades and expect that it is worth around $50,000 right now.

But I have a place to live, a very nice place with a good piece of land and a job that appears safe so I consider myself fortunate in many ways.

[jackie5275]

I'm in Dbn near Oakwood Hospital. I'm also within walking distance elementary, middle, & high schools. Bought my house in '02 for $161K. It was in pretty good shape, so I haven't had much to do on it. I did put in a new porch & front sidewalk last summer for $4K. I got my assessment notice from the city about 2 weeks ago. They lowered my property value by $11K from last year. It's FMV is now $119K based on the assessement. Now I'm officially upside down in my mortgage. I knew from last year's assessment it would be coming. I thought it would take at least 2 yrs before I'd be upside down. I guess I was wrong. I talked to a buddy of mine who lives in Canton who said his assessment dropped his property value down by $9K from last to this year. I know his home isn't as old as mine. I guess this is just more evidence that the housing bubble was created on overvalued homes that sold for unrealistically high prices.

[kryptonite]

Most assessed values in metro Detroit are far higher than market value, so my assessed value is around $83,000 but I see much larger houses than my own listing for little more than the assessed value of my house. Local governments don't want assessments to reflect market value because they need the tax revenue. We are being taxed for ridiculously high market values. In reality our homes are usually worth considerably less.

[Baselinepunk]

We bought in Ferndale in 1999 for 116,000. Looks like today it internet appraises for around 125,000; still the highest priced residential on the street. Just before the shit hit the fan, we internet appraised at around 195,000. I know these are not official numbers; our last formal appraisal in '03 had us up at 168,000. We ain't going now where soon, so what the house is worth today is NBFD.

[rustic2]

Paid $189K in a beautiful neighborhood Redford, near the country club, in 2003. Latest assessment -- and it may be overassessed -- put the market value at $100K. Still owe about $158K. Lost our equity and now we're throwing money into a hole.

Stuck. Open to a short sale but Bank of America would probably just laugh at me. Looked into refinancing but credit union scoffed. Our jobs are precarious at best, so if circumstances change, I might be sending some jingle mail.

This so-called "housing bubble," to put it simply, amounted to theft on a huge scale. I wonder if some class-action lawsuits, or legal action by governments that are now out billions in tax revenue because of undervalued properties, might be in order.

[sumas]

Live in Detroit and the drop in value was hugh.

[rustic2]

My dad sold his house in south Rosedale Park, after 30 years, for almost $200K in 2003. Hate to think of what it's worth now. ...

[n7hn]

I got two examples for the group. My old home in Detroit by joy/southfield, 5 BR, 3 bath, 1925 tudor, leaded glass, fantastic plaster details. Sold in about 2000 for $60,000, they replaced heating, roof, kitchen, and bathrooms . It sold it for $160,000 in about 2003. FOrclosed on after about a year, sat vacant, then sold in 2008 for $15,000 and did not get stripped while it sat. Only needed some paint.

My L.A. home, 2 br 1 bath, bought in 2005 for $264,000, put $60,000 into it, was worth 383,000, then fell to what it is now, $140,000. HAd I not repaired what I did it would probably be worth about $85,000 by what I see selling near me. Just lost my job, so the house is probably going to the bank soon, and unemployment wont cover my payments. sigh....... welcome to the good life.....LOL.

You all should see me back soon..... In maybe a $5,000 detroit model.....= )

[rustic2]

Welcome back ... if you make the move. Dead as the city might seem, those Detroit roots have a strong pull.

[gumby]

My house in a really nice neighborhood in Flint was bought in 2001 by the previous owners for $140,000 they were foreclosed on in late 2006 and I bought it in 2007 for $93,000. I just received a paper stating that my SEV and Taxable values were lowered to somewhere around $38,000 so that means they think it is worth $76,000. But realistically if I were to sell I could probably get $60,000 to $70,000. Houses in my neighborhood are going anywhere from $30,000 to $200,000 at the moment.

[n7hn]

thanks rustic........ Got my eye on a couple places. Seems Like its time to return....... or live in a box. = )

Its really horrible the positions we all been put in. Lucky are the few that are ok......

[kryptonite]

A friend of mine just bought a house in Palm Springs, CA area that originally listed for $800,000 and in very good condition. He purchased the house for $250,000. His Michigan house has had zero offers in over two years, although I believe it has gone on and off the market at various times.

[rustic2]

Now you got me started!

Collectively, this was perhaps the biggest swindle in the nation's history. And now I read the lenders left with foreclosures and walkaways aren't even putting them on the market because of the glut. The banks get bailed out, and we're stuck with the bill -- and with paying back our loans.

We took a practical approach to buying our house, got a good interest rate on a 30-year fixed loan, weren't trying to speculate or flip it -- and we're left with nothing. Less than nothing.

With the number of vacancies in Redford, the strong likelihood the township will be forced to lay off cops and firefighters, and the general decline of the Detroit area in general and the inner-ring suburbs in particular, there is no chance our house will regain its value in at least 15 years. I don't have the resources to wait that long.

I can't understand why people aren't marching in the streets over this. I fear -- and hope -- that many haven't yet awakened to the problem.

[rustic2]

n7hn, about that box. The ancient Greek Diogenes, who was looking for an honest man, was said to have lived in a tub. :}

[kryptonite]

n7hn, hey the real estate market here may be on the upswing?

http://www.freep.com/article/2010031...dian-prices-up

Still, the deals here are more than excellent if someone is in a position to buy in metro Detroit.

[JStone]

It's one thing to pay on a mortgage from 2005 prices for the next 25 years even if you can still afford it, but it's entirely different when the block you live on has abandon homes, becomes majority home renters, or the socia-economic dynamics of your block change. [[I know that might sound sh*tty of me but it's a legitimate factor than most people use in their home buying decisions) Not to mention city services decrease and crime increases. Are you suppose to just keep towing the line? How many break-ins are you suppose to endure? Are you only justified dumping the mortgage after you suffer bodily harm? It's potentially like having an anchor tied to your neck on a sinking ship. It's kind of a drag. Nobody really talks about that.

I figure I'm at least $50k underwater and another $20k out of pocket and all I ever wanted was to break even. Wha-wha-wha-wahahahahahah....

[buildingsofdetroit]

I'm at least $40,000 underwater on my house in SW Detroit, not counting the $20,000 I sank into sprucing it up, new kitchen, etc.

[Haikoont]

For property tax purposes, my assessed value for 2010 is 36 percent of what it was in 2007. Although I've had the place almost since the passage of prop A, my taxes are going down this year.

[MaxDetroit]

My daughter's family moved to a southwestern state last year after short selling their home. Her credit score will be trashed for 7 years and she made all the payments on time. They're in an apt complex where the noise is terrible. She works but her husband is a leech who could make more flipping burgers than at his current "job". So they're stuck for now unless they hit the lotto.

I'm recently retired with no mortgage and thankfully no need for a job. Very lucky compared to most. Our home is comfortable but the assessment is ridiculously out of line with street value. We are staying put.

[R8RBOB]

Now you got me started!

Collectively, this was perhaps the biggest swindle in the nation's history. And now I read the lenders left with foreclosures and walkaways aren't even putting them on the market because of the glut. The banks get bailed out, and we're stuck with the bill -- and with paying back our loans.


I can't understand why people aren't marching in the streets over this. I fear -- and hope -- that many haven't yet awakened to the problem.

I have a theory. It's off the wall so bear with me.

From the fall of 2008 to the spring of 2009, what were the people angry about? The banks....

A major reason why Obama was elected was because the people was angry that the banks were able to run wild during the Bush era [[as well as Clinton, first Bush and Reagan) and tank the economy. People were outraged that these banks got bailed out yet the average joe is told to get out of the bank's house. President Obama had a mandate to get the banks in line yet, the banks are the ultimate. They have all the money including the taxpayers and they suggested that the government focus on something that would distract the people anger towards the banks. What would that be? Healthcare!!!!

From the summer of 2009 to today, people have protested about Obamacare or Obama himself. Tea parties have been formed to protest taxes, Obama, healthcare, Obama, the wars, Obama, civil liberies, Obama, etc... yet at the same time these people are either getting thrown out of their homes or their property values have decreased but they're outraged about healthcare. Your last comment about marching in the streets. I believe they would be marching and protesting but they are a bit distracted at the moment.


http://r8rbob.wordpress.com

[English]

I have a theory. It's off the wall so bear with me.

From the fall of 2008 to the spring of 2009, what were the people angry about? The banks....

A major reason why Obama was elected was because the people was angry that the banks were able to run wild during the Bush era [[as well as Clinton, first Bush and Reagan) and tank the economy. People were outraged that these banks got bailed out yet the average joe is told to get out of the bank's house. President Obama had a mandate to get the banks in line yet, the banks are the ultimate. They have all the money including the taxpayers and they suggested that the government focus on something that would distract the people anger towards the banks. What would that be? Healthcare!!!!

From the summer of 2009 to today, people have protested about Obamacare or Obama himself. Tea parties have been formed to protest taxes, Obama, healthcare, Obama, the wars, Obama, civil liberies, Obama, etc... yet at the same time these people are either getting thrown out of their homes or their property values have decreased but they're outraged about healthcare. Your last comment about marching in the streets. I believe they would be marching and protesting but they are a bit distracted at the moment.

http://r8rbob.wordpress.com

You know, you may be on to something here.

I got swept up by the "hope and change" myself. Now I'm wondering who Reagan, Bush I, Clinton, Bush II, and Obama are really working for. I never thought I'd be a conspiracy theorist, but I never thought I'd see the dismantling of the American middle class and average Americans justifying the loss of jobs, wages, and property values.