foreclosure in the State of: California
Like most people in California, I own a distressed home. Here are the facts:
>> I bought my condo in 2006 for 0K, paid 10% down. 80% mortgage, 10% HELOC
>> I later paid the original HELOC back, refinanced the home for a lower rate then got another 10% HELOC. Right now my Heloc is frozen and I have K balance on it that I am paying on interest-only basis.
>> Now the home value is around 0K
1. When I moved to California, I was told that I should buy a house or condo, because the mortgage would not cost much more than the rent on an apartment, and the house or condo would go up in value, and I would build equity. However, I was concerned that it might go down in value and that, if I had to move, I would be stuck paying whatever was left on the mortgage. Well, home prices in California did go down, but the lenders allowed short sales and mortgage modifications, so those who bought and have negative equity do not have to pay all of what they owe; some of them were even able to stop paying their mortgages for awhile and keep their homes, even though I had to keep paying my rent.