Need some advice

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than711_IHB

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Wished I had found this blog prior to me purchasing my home. But this is my question I bought a home in Irvine for $700k 80/10/10 on Feb 07. 3 bed 2.5 bath 1600 sq ft. Making the payments is not a problem at all. Now that the market the way it is what am I suppose to do? Do I walk away or continue throwing my money down the drain?
 
[quote author="than711" date=1211878173]Wished I had found this blog prior to me purchasing my home. But this is my question I bought a home in Irvine for $700k 80/10/10 on Feb 07. 3 bed 2.5 bath 1600 sq ft. Making the payments is not a problem at all. Now that the market the way it is what am I suppose to do? Do I walk away or continue throwing my money down the drain?</blockquote>


Only you can decide what to do. Just know that your place is probably going for $575K today (my 1600sf 3/2.5 is) and is headed down to $450K territory. It will be many many years before it sees $700K again... I'd guess it will be back to purchase price by 2020 or so.
 
<blockquote>Wished I had found this blog prior to me purchasing my home. But this is my question I bought a home in Irvine for $700k 80/10/10 on Feb 07. 3 bed 2.5 bath 1600 sq ft. Making the payments is not a problem at all. Now that the market the way it is what am I suppose to do? Do I walk away or continue throwing my money down the drain? </blockquote>
If you don't have to move and you can make your payments comfortably, then I wouldn't worry about it. The market will appreciate again and your place will be back to purchase price.



Just enjoy your house and your family and don't worry about what you can't control.



Life is too precious to worry about what we can't control.
 
Yeah, don't worry about it. cycles come and go. If you love the neighborhood and the schools, it isn't worth trying to short sale your house.
 
Just feels bad when you aren't trying to time the market or anything and your property just does a huge nosedive after you get into it. Timing sure is everything.
 
I can give you the comforting advice as CalGal gave you or the harsh reality advice that IPOP gave.



Comforting advice:

You don't lose the equity until you sell it. Hang tight, it may be a while, but the market will eventually recover. Just count your blessings, as it could of been worse : you could of bought the house in 2006 at a higher price or not be able to make your payment comfortably as you are right now.



Harsh Reality:

I would have to agree with IPOP's statements. Your same house is going for $575k as we stand now, which is right about the median home price of Irvine. Experts are predicting the median home price for Irvine could very well drop as low as $420,000 by 2010/2011. With a big recession, we may get there faster. Therefore, my advice is to hang tight and remember that you don't lose your equity until you sell.



Panda "BEAR"
 
[quote author="ipoplaya" date=1211882452][quote author="than711" date=1211878173]Wished I had found this blog prior to me purchasing my home. But this is my question I bought a home in Irvine for $700k 80/10/10 on Feb 07. 3 bed 2.5 bath 1600 sq ft. Making the payments is not a problem at all. Now that the market the way it is what am I suppose to do? Do I walk away or continue throwing my money down the drain?</blockquote>


Only you can decide what to do. Just know that your place is probably going for $575K today (my 1600sf 3/2.5 is) and is headed down to $450K territory. It will be many many years before it sees $700K again... I'd guess it will be back to purchase price by 2020 or so.</blockquote>


than - You actually bought one of the nicest of Ipop's detached models in the same neighborhood. If I remember correctly, you have one of the few plan 3's with a kitchen island and granite everywhere. There were several others that paid $725-, $735-, and $745K for less desirable versions of the same home. The toll road proximity will be a bear when it eventually comes time to sell due to buyers' perception, but everyone that lives there knows that the only "noisy" days are when they run race day. IMO, it is a very good trade for the privacy you get. Most all of the neighbors (even grumpy Ipop) are friendly, as well.



You should search yourself, and remember why you bought the home in the first place. If it was to live and grow in, you couldn't have picked a nicer 'hood. If it was strictly for the investment benefits, you need to decide whether you eat the $100K difference and sell now, or if you trade your credit scores for a difference of $30K, or ride it out.
 
I'm curious what sort of loan product is attached to this property and it's owners, what the monthly stroke is, and when/if it's due to reset.
 
Too bad you are not an investment bank, because you could appeal to have your property valued at previous values, (marked to history), and refinance based on the historical valuation.
 
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