I think playing by the rules just gets you know where. Now this asumming that your mortgage contract allows you to hand back the keys ,which most do. I would have your house revalued at the current market rate and contact your bank and say you are struggling in the economic climate. Ask them to reduce your loan to current market value. Otherwise you could remind them of your right to hand back the keys and with the removal of all improvements that it will cost them more money if you threaten to walk away and hand in the keys and they have to resell a empty stripped bare house.

Why should you face higher taxes reducing your income to finiance the banks that caused the bubble in the first place. Your loan has probably been resold as investment over and over again so its doubtful if the bank can legally forclose anyway if challenged as if they have sold it as an investment they have already been paid.

The banks held the Goverment to Ransom so play there game. Worth a try……

I think playing by the rules just gets you know where. Now this asumming that your mortgage contract allows you to hand back the keys ,which most do. I would have your house revalued at the current market rate and contact your bank and say you are struggling in the economic climate. Ask them to reduce your loan to current market value. Otherwise you could remind them of your right to hand back the keys and with the removal of all improvements that it will cost them more money if you threaten to walk away and hand in the keys and they have to resell a empty stripped bare house.

Why should you face higher taxes reducing your income to finiance the banks that caused the bubble in the first place. Your loan has probably been resold as investment over and over again so its doubtful if the bank can legally forclose anyway if challenged as if they have sold it as an investment they have already been paid.

The banks held the Goverment to Ransom so play there game. Worth a try……

Ms Krista makes a good point about the taxes. Detroit's real estate market is all kinds of crazy; my sister (who's in the same position with her mortgage and wanting to move as you are) was just telling me how out of line her tax assessment is with market value of her house. So it is probably fair to say that the market value is lower than it was when you bought it and lower than the amount on your mortgage, but it may not be as bad. I presume you've already looked through zillow.com and other resources to see what comparable (non-foreclosed-on) homes in your area are selling for. Have you talked to your bank about refinancing, since you do have good credit?

To be with my probable-future-husband! —

At this point, while the obvious answer seems to be "stay in your house" that is obviously not going to make you happy. I suspect you'll pull the trigger on moving sooner rather than later. So there's going to be a tradeoff. Only you can truly decide how much of a financial hit your heart and your credit can tolerate.

This is the time to make a plan and fucking work it. And this is where you need to have a courageous conversation and trust and lean on JT. Because if y'all are truly seriously going to move forward together, y'all could and should work through this together.

Can you move out there, shack up with him, and rent your house in the mean time? Even if you can't rent the house enough to cover the cost of the mortgage, can you save enough living with him to cover the rest (and maybe a property manager)? Can y'all both move somewhere else cheaper than LA or Atlanta? Can you say right now, I'm going to move *somewhere* in two years and in the mean time I'm going to pay the everloving shit out of this credit card debt or pay ahead on the mortgage. I don't know how much you are putting into your 401(k), but I'd back off anything more than 5% (or whatever your company matches, if they do) and keep the rest of that money.

It sounds like you're already trying to cut back where you can and still pay your bills and put money towards things that truly make you happy (like spending time with JT), so I don't know how much more room you have to make those adjustments. But I also understand wanting to handle your own business and not enter into a relationship with that kind of baggage. I'm still struggling with that and, hey, it turns out my gf has her own shit which is pretty much the opposite of what I thought it was. Just gotta work through it and have some faith and trust.

I don't know, I'm kind of brainstorming here and maybe not telling you anything you don't know or haven't considered. But you are in a position in your life where you can't let a calculator alone make this decision.

Ms Krista makes a good point about the taxes. Detroit's real estate market is all kinds of crazy; my sister (who's in the same position with her mortgage and wanting to move as you are) was just telling me how out of line her tax assessment is with market value of her house. So it is probably fair to say that the market value is lower than it was when you bought it and lower than the amount on your mortgage, but it may not be as bad. I presume you've already looked through zillow.com and other resources to see what comparable (non-foreclosed-on) homes in your area are selling for. Have you talked to your bank about refinancing, since you do have good credit?

To be with my probable-future-husband! —

At this point, while the obvious answer seems to be "stay in your house" that is obviously not going to make you happy. I suspect you'll pull the trigger on moving sooner rather than later. So there's going to be a tradeoff. Only you can truly decide how much of a financial hit your heart and your credit can tolerate.

This is the time to make a plan and fucking work it. And this is where you need to have a courageous conversation and trust and lean on JT. Because if y'all are truly seriously going to move forward together, y'all could and should work through this together.

Can you move out there, shack up with him, and rent your house in the mean time? Even if you can't rent the house enough to cover the cost of the mortgage, can you save enough living with him to cover the rest (and maybe a property manager)? Can y'all both move somewhere else cheaper than LA or Atlanta? Can you say right now, I'm going to move *somewhere* in two years and in the mean time I'm going to pay the everloving shit out of this credit card debt or pay ahead on the mortgage. I don't know how much you are putting into your 401(k), but I'd back off anything more than 5% (or whatever your company matches, if they do) and keep the rest of that money.

It sounds like you're already trying to cut back where you can and still pay your bills and put money towards things that truly make you happy (like spending time with JT), so I don't know how much more room you have to make those adjustments. But I also understand wanting to handle your own business and not enter into a relationship with that kind of baggage. I'm still struggling with that and, hey, it turns out my gf has her own shit which is pretty much the opposite of what I thought it was. Just gotta work through it and have some faith and trust.

I don't know, I'm kind of brainstorming here and maybe not telling you anything you don't know or haven't considered. But you are in a position in your life where you can't let a calculator alone make this decision.

On the Up Side:

1. You can still meet your financial obligations
2. You do not need to sell in the near term
3. The improvements you have made put you in a good selling position when things turn around
4. Your property taxes will be lower as a result of the updated appraisal
5. You probably got a good deal on the purchase price (at a low point in the market)

On the Less Up Side:

1. Historically, housing recoveries take 6-8 years (this is a somewhat more rosy scenario than your 2023 estimate, but still not optimal)
2. The Atlanta area has seen elevated rates of fraud on the side of finance companies, appraisers, mortgage brokers (If you are able to prove that an appraisal was fraudulent or that the appraiser colluded with your financial company, you do have legal recourse to have your mortgage unwound.)

Food for Thought:

1. It could be worse (you could live in Detroit, Southern CA, or Las Vegas, where things are bad beyond belief)
2. Contact your lender about refinancing (or Fannie/Freddie.) It is a stretch, but you could probably do better than the rate you have now by maybe 1/2 to 3/4 of a point. Lower finance charges means you could be paying your principal down faster, thereby rebuilding your equity.
3. This, too, shall pass

IMHO, home ownership may not be right for you in the near term. One of the problems we have in this country is over-incenting home buying: it puts downward pressure on home prices (over building) and upward pressure on structural and frictional unemployment (qualified workers cannot easily move for other or better jobs.)

A single, successful professional (and small business owner) such as yourself may not need the space, but was likely temped by the American Dream of your own plot of land, low housing prices, and affordable financing. When you bag this hot dude in CA, get married and spawn, you'll need the space. Until then, stay flexible, mobile and low-overhead.

No matter what, good luck, Tiffany.

On the Up Side:

1. You can still meet your financial obligations
2. You do not need to sell in the near term
3. The improvements you have made put you in a good selling position when things turn around
4. Your property taxes will be lower as a result of the updated appraisal
5. You probably got a good deal on the purchase price (at a low point in the market)

On the Less Up Side:

1. Historically, housing recoveries take 6-8 years (this is a somewhat more rosy scenario than your 2023 estimate, but still not optimal)
2. The Atlanta area has seen elevated rates of fraud on the side of finance companies, appraisers, mortgage brokers (If you are able to prove that an appraisal was fraudulent or that the appraiser colluded with your financial company, you do have legal recourse to have your mortgage unwound.)

Food for Thought:

1. It could be worse (you could live in Detroit, Southern CA, or Las Vegas, where things are bad beyond belief)
2. Contact your lender about refinancing (or Fannie/Freddie.) It is a stretch, but you could probably do better than the rate you have now by maybe 1/2 to 3/4 of a point. Lower finance charges means you could be paying your principal down faster, thereby rebuilding your equity.
3. This, too, shall pass

IMHO, home ownership may not be right for you in the near term. One of the problems we have in this country is over-incenting home buying: it puts downward pressure on home prices (over building) and upward pressure on structural and frictional unemployment (qualified workers cannot easily move for other or better jobs.)

A single, successful professional (and small business owner) such as yourself may not need the space, but was likely temped by the American Dream of your own plot of land, low housing prices, and affordable financing. When you bag this hot dude in CA, get married and spawn, you'll need the space. Until then, stay flexible, mobile and low-overhead.

No matter what, good luck, Tiffany.

My original plan was to move in 5 years (give or take). Life circumstances are nudging that up a bit (I want to move NOW! To California! To be with my probable-future-husband!) But considering the degree to which the market has tanked, and how hard my ZIP code has been hit, I'm not sure that will be possible. Plus the downturn would have to stop THIS YEAR, and appreciation would have to jump back to 3%.

The one possible bright spot I can see is that so many people are upside-down that housing will either HAVE to rebound to boom prices (because if I have to sell, I need to break even, right?), or so many people will go through foreclosure that having one on your credit will be a non-issue.

My original plan was to move in 5 years (give or take). Life circumstances are nudging that up a bit (I want to move NOW! To California! To be with my probable-future-husband!) But considering the degree to which the market has tanked, and how hard my ZIP code has been hit, I'm not sure that will be possible. Plus the downturn would have to stop THIS YEAR, and appreciation would have to jump back to 3%.

The one possible bright spot I can see is that so many people are upside-down that housing will either HAVE to rebound to boom prices (because if I have to sell, I need to break even, right?), or so many people will go through foreclosure that having one on your credit will be a non-issue.

1. I concur w/Mr. Tyree…you have to look at a house as a long-term, buy-and-hold investment. Don't dispair. Just like with stocks, you only lose $ if you sell it. Hang on. Maintain. Stand the storm, you'll anchor by and by…etc.

2. Have you looked at what other comparable homes are selling for in your area? I never put much stock in what the county says in terms of market value. That's all purely a tax game. If you were to sell, it would come down to what a professional appraiser would say its worth, not DeKalb County. Go back and re-read what you wrote about the selling price and appraised value magically coming out the same. That scenario works on the flip side too. Real estate agents *cough*pay off the appraiser*cough* ummm….. have a way of making the appraisal come out like they want it too. This is my 2nd home and I've refinanced 3 times – I've yet to have a house appraise under the asking price.

3. Be patient. I've been in my place 13 years now, and I've been where you are more than once. It will appreciate eventually.

Hope this helps

1. I concur w/Mr. Tyree…you have to look at a house as a long-term, buy-and-hold investment. Don't dispair. Just like with stocks, you only lose $ if you sell it. Hang on. Maintain. Stand the storm, you'll anchor by and by…etc.

2. Have you looked at what other comparable homes are selling for in your area? I never put much stock in what the county says in terms of market value. That's all purely a tax game. If you were to sell, it would come down to what a professional appraiser would say its worth, not DeKalb County. Go back and re-read what you wrote about the selling price and appraised value magically coming out the same. That scenario works on the flip side too. Real estate agents *cough*pay off the appraiser*cough* ummm….. have a way of making the appraisal come out like they want it too. This is my 2nd home and I've refinanced 3 times – I've yet to have a house appraise under the asking price.

3. Be patient. I've been in my place 13 years now, and I've been where you are more than once. It will appreciate eventually.

Hope this helps