some people got in trouble who didn't over-finance.
I was OKed for a $145K house and got one for just over $90k. I then lost my job just over a month after moving in. I went through all my savings, got a much lower paying job, got a home equity loan (to pay off the credit cards I rang up while unemployed, for frivolous things like groceries), then got kicked down the job scale again. I owed about the original $90k at that point between the primary mortgage and the home equity loan. I looked into selling and quickly estimated it was worth about $30k on the local market. People didn't believe it when I told them that, but I saw the bank eventually sold it for $24,500 after the foreclosure, so I guess I was right after-all. Anyways, once I saw how upside-down I was, I knew a short-sale, dealing with 2 banks, would not be an option, so I quit paying. I left the place in like I was living in it (without all my garbage) and used that money to get out of dodge, and moved somewhere much cheaper to live.
I hated to do it, but I could no longer afford the payments, and had no other real options. I'm glad I am out of the city. That damned house was the only thing keeping me there that long. Once I saw that the roots I'd put down had withered, I was gone.
Had I not been laid off that first time, my life would be entirely different than it is now. I might still be in that house, but with it paid off.
I was OKed for a $145K house and got one for just over $90k. I then lost my job just over a month after moving in. I went through all my savings, got a much lower paying job, got a home equity loan (to pay off the credit cards I rang up while unemployed, for frivolous things like groceries), then got kicked down the job scale again. I owed about the original $90k at that point between the primary mortgage and the home equity loan. I looked into selling and quickly estimated it was worth about $30k on the local market. People didn't believe it when I told them that, but I saw the bank eventually sold it for $24,500 after the foreclosure, so I guess I was right after-all. Anyways, once I saw how upside-down I was, I knew a short-sale, dealing with 2 banks, would not be an option, so I quit paying. I left the place in like I was living in it (without all my garbage) and used that money to get out of dodge, and moved somewhere much cheaper to live.
I hated to do it, but I could no longer afford the payments, and had no other real options. I'm glad I am out of the city. That damned house was the only thing keeping me there that long. Once I saw that the roots I'd put down had withered, I was gone.
Had I not been laid off that first time, my life would be entirely different than it is now. I might still be in that house, but with it paid off.