But...if you wre really able to afford the 3000.00 per month its not a big deal. You just keep making your payments and eventually the prices go back up. If you could really afford the house you're in, you would've put enough down so you're not upside down and be able to keep making the payments regardless of what your house is worth on paper. You're only out money if you sell your house. If you like your house, keep making the payments and nothing has to change. In fact, your property tax bill could go down.
The problem is all the horrible loans that allowed people to buy houses with zero money down and take out an equity loan at the same time so they started of owing more than the purchase price of the house. Also the loans where you pay 1.25% on your payment but your loan is charged 8.25% so your principle balance goes up every month, then your teaser rate ends and it was raised 1% every year and suddenly 4 years later you have a mortgage you never really could afford at a standard rate, except now your rate is 12.25%. Its absurd. I really don't know how the lenders didn't see this coming, they created their own mess and now they're basically demanding the government bail them out.
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