I spent most of the night laying awake in bed debating whether I should attempt to do a short sale on the property I currently reside in. I owe just under $78,000 on the first mortgage and just over $28,000 on the second, which is an interest only home equity line of credit for a total of approximately $106,000, an amount I won’t even come close to getting. I tried to refinance on just the first, but unfortunately the property didn’t appraise at what it needed to be at for them to do the loan. Homes in my area of the similar size and features are now selling between 60 and 70 thousand. I bought the property for $87,500 back in 2002. I shouldn’t use the term “selling” it’s more like they’re being listed at that price range. If they sell or not is a whole other story for a later time, but
I figure if I put my property on the market for 64 or 65,000, I might have a chance to actually sell, but even at that price I’m pushing my luck and that’s considering if both banks agree to doing a short sale and I find a buyer.
If I strictly look at it from a business perspective a short sale is making more and more sense every passing day. Property values continue to drop, mostly due to the less than desirable job market here in Michigan, with no end in sight. Most people that I talk to only feel things are going to get worse, maybe even much worse, before they start getting better. For several reasons; the first being the automotive industry, many people that I talk to that know a lot more about the auto industry than myself say it’s just a matter of time before GM runs out of money again. If this happens as many have predicted, it’s going to create a huge dilemma for this administration, one that I can’t see ending well for the people of Michigan. As it is people are mad as hell right now for several different reasons and I don’t foresee the American people sitting idly by as the Obama administration and the UAW help themselves to another bailout. Don’t get me wrong the UAW isn’t going to out without a fight, but with that said I don’t think President Obama is going to risk his political career for his UAW buddies, I could be wrong, but he seems like he has way to much political savvy to allow this to happen.
Considering the auto industry has been heavily subsidized for almost the last year and Michigan still has the highest unemployment rate in the nation, can you imagine what is going to happen when the government is forced to turn off the money spigot, it’s going to be a barren desolate financial waste land if Michigan doesn’t starting heading in a new direction.
Which brings me back to the issue of short sale or no short sale; I am putting my house on the market today for 64,500 any takers please contact me ASAP, also I’ll be happy to negotiate assuming the banks allow for it. Reason being; I don’t see things turning around in this state anytime soon, therefore I don’t see property values going up anytime soon and if they do, not anywhere near what I or the majority of my neighbors would need in order to hit the break even point. Oh one other thing I should mention; they’re expanding the highway behind our house, another reason I want out. Unfortunately for us we were on the wrong side of the highway and therefore aren’t being bought out by the state. I was so hoping we would.
