My home has lost 65% of its value since I purchased it, what should I do?

manybugs
Contributions:1

I am 65% upside down on my home loan, and each month the value of this home decreases by about 5 percent. Any suggestions? I can afford the mortgage payment, that's not the problem. It's that I only planned on owning this home for no more than 5 years. It has been two years now, and each month I have seen the value drop. Like I said, it has dropped in value by 65%!!!

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January 01 2010 - US

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Answers (3)

Ben Levy, "floridabound42"
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I really feel the homes may continue to fall another 10 to 30% so would really consider selling before you sink. If you would like I would be interested in helping vyou out by buy your home for say 15% less then the current market value right now.

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January 02 2010

zchrisd
Contributions:1

Loan mods can wreck your credit. You need to forget your 5 year plan, thats what is making the whole situation unbearable. Think Short Term Survival for Long Term Win. Adjust your monthly cash flow by taking in a renter OR better yet, renting the place outright to pay the mortgage, especially if you can maintain residence in a smaller portion of the home. Then rent cheaply somewhere else and have a renter pay your mortgage. Ride out the storm ( and yes this is a financial storm ) and hold on to the house whatever you do, DO NOT SELL NOW!

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January 02 2010

Massey Kouhssari, "BankerBroker"
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I obviously do not know you or your situation but am evaluating what you have posted and this is what I am understanding: you mentioned your investment is worth 65% lower now that when you acquired it, and that it is decreasing 5% every month but you can still afford to feed the devil and put your money in the grinder every month. If your home is worth your monthly payments then continue. if not: Talk to your lender to do a short sale or Loan Modification. visit www.shortsalefiling.com