Monday, January 12, 2009

An In Debt View On Florida Mortgage Debt

When will housing prices rebound? It's the billion-dollar question. With the economy weakening day by day, probably not next year.

After reading the article written by Scott Cendrowski under the title "The 2009 Housing outlook" and published in Fortune Magazine; December 22, 2008 (Special Issue: Investor's Guide 2009, Why It's Time to Buy) I came to the following conclusion:

Today the Orlando-Kissimmee market here in Florida has dropped significantly. Certain areas have dropped 40 to 50% compared to 2007. In the subject article Scott Cendrowski predicts that that same area is going to have another price change of -19.8% in 2009 and another one of -7.1% in 2010.

What does that mean in reality to Joe The Plumber who bought his house at $300,000 in 2006?

Well, Joe's house is now worth $150,000 and next year, according to Fortune Magazine, his house will be worth $120,000 and in 2010 that same house will be worth $110,000.

Any idea how long it will take to get that house back at $300,000 with an annual price increase of 5%?

Well, I've calculated that and it is going to take 20 years.

A lot of homeowners in Florida think that there home is still worth more than market value and most of them say that they will ride out the storm. This is not a storm we're facing, but a hurricane. And one thing Floridians should know about hurricanes is not to stay around and trying to ride it out.

These are historic times we are living in, I am sure that the credit agencies will develop different rating formula's for people facing delays in payment in 2008 and 2009, because almost every American is affected. And buy the way why do we all worry about that credit score? Why do we need a good credit score? To get more debt? It is debt that got us in this mess in the first place.

Now is a good time to clean up your slate. Just negotiate a short sale with your bank, agree on debt forgiveness and let them waive deficiency judgment. And whilst you at, why not negotiate a settlement on your credit cards? A lot of information on Foreclosure avoidance, deed in lieu and loan modification can be found on my monkeysold blog

Makes sense? doesn't it?

by Monkeysold, Celebration, FL

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