Wednesday, July 13, 2011

Interesting Article: Underwater Home

After we purchased our new home in 2005, we spent the first year stunned by the $68,000 increase in the house's value. Little did we know that in just six short years the value would turn the other direction. Our house value has since slid an almost identical, but negative, $70,000.

Even though we owe more money on our mortgage than our house is now worth, we have discovered a positive side to plummeting house values that include a huge reduction in our property tax bill.

(I am thinking, if I am the home owner, should I sell the house or hold it? If I sell it, I have no more house but still owe bank money. Maybe I shall keep it and close two eye to pay the installment every month.)

According to, half of homeowners who purchased their home in 2006 owe more than their home is currently worth. For people like us who purchased in 2005, the percentage underwater of people who are underwater in their homes is 42 percent.

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