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Home value has dropped since built in 2005. How and will my mortgage company help?

I had a new home built in Maricopa, Arizona in 2005 when things were crazy. Now I'm look at a home that's value had dropped by 53%. How do I approach my mortgage company to see what can be done to minimize payment demands on my home that is not worth the monthly payment I'm currently making? Need some really solid imput here. Thanks
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July 29 2011 - North Hampton
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Answers (4)

You certainly can ask. But Dan (Hey, Dan!) hit the nail on the head.

We buy plenty of things that lose value. Some we expect will lose value--like a car or a computer. Some we don't expect--like stocks or mutual funds, perhaps. You make a purchase; you take your chances.

And whether it's a car or a computer or a home, you're still getting value from it. It's still doing what you paid it to do. Just because it's worth less than what you paid for it doesn't mean it's no good. I'll admit: It's a bit uncomfortable if you're still paying for it. But when people buy cars, they're "upside down" from the moment they drive it off the lot until it's nearly paid off.

You certainly can ask the bank to do a loan modification. It's a free country. But don't be surprised if they refuse. 
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July 30 2011
Profile picture for the_country_hick
My cars value has also dropped since 2005. No one is going to do anything about it.

Just because you bought something that lost value does not mean anyone else can or should do anything to minimize your losses. That is life. If you pay to much or something loses value you deal with that fact.
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July 30 2011
The assistance you will receive from the lender will be in relation to your present hardship.  They will ask you to write "A Hardship Letter" explaining any changes that have taken place in your life, since you bought the property, regardless of the present price of your home, if your income has not changed for the worse, I do not believe they will help you.
Let's face it, home prices have gone down nationwide, that will mean that everybody who owns property should be given assistance, somehow it does not work like that.  Real estate is a commodity, it fluctuates, fortunately unlike other commodities that cease to exist, real estate stays there with more or less value, but it is tangible. If you do not believe me, talk to share holders of ENRON who woke up one day to see their ticker gone.  Good luck!
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July 30 2011
Profile picture for wetdawgs
Will your mortgage company help?   Not likely, but it doesn't hurt to see if you are qualified for any of the government programs (start with the makinghomesaffordable.gov website).   

Have you had a hardship (such as loss of income) making it more difficult to pay your mortgage.

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July 29 2011
 
Related Questions
Home value has dropped since built in 2005. How and will my mortgage company help?
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Latest answer by wordsmth
July 30 2011 | 4 answers
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