Letter From Chase Mortgage: Dear Valued Customer, Fuck You.
Nobody wants to hear the value of their home has declined, (no shit) however more and more this is a reality many homeowners are facing.
According to recent report issued by Freddie Mac*, not only did home values have the steepest quarterly decline since 1971, this was the first in recent times that all regions of the country reported declines. While there are still some neighborhoods and pockets of the country that are holding values, the levels of decline in other regions vary greatly.
So what's a homeowner to do in the face of a declining property value? The answer to that largely depends on your individual situation and your goals.
The big question is -- Are you "upside down"? (Yes) In real estate terms, this refers to a situation where a homeowner owes more on their mortgage then the current market value of their home.
•Staying Put. Market trends show home prices have risen and fallen in cycles, so if you plan to stay in your home, you may be able to ride out this downturn. The value of your home may not be an issue until you go to sell. (Stay put so you can be the guy paying 300% the market value of your home. Stay put so you can max your credit to the limit and be the last asshole to forclose while everyone else is on the 7-year road to credit recovery. Nice advice.)
•Plan to sell your home? If you are in a situation where you need to sell, for instance maybe you are relocating to a new area of the country and can not hold on to your current home, (you're screwed no matter what) this may still work for you if you are moving to a house that will be less expensive. You may be considering listing the property on your own for sale, looking to preserve some cash. However, keep in mind, working with an experienced real estate professional may be a good course of action to help determine the local market conditions and expand your reach to sellers. (So pay the stupid highschool educated real-estate broker who raped you on the purchase the first time to rape you again on your way to the poor house. Awesome idea! I probably couldn't figure out that my home's value has dropped 50% in the past year and the shortsales all around me sure aren't tipping me off.) It is up to you to determine the best course of action for your situation. Keep in mind, Home Connect from Chase is here to help – you can be introduced to a certified Real Estate Professional in your area and may receive up to $2,500 cash back** after the closing.
•Need to refinance. Being upside down on your mortgage may be a real concern if you are looking to refinance. You will not be able to refinance without equity in your home, so if you need to adjust your mortgage you will likely need to come up with cash to put against the new mortgage loan. (So, if you're underwater, and don't have the difference in cash, refinancing isn't an option, Chase just wanted all the lottery winners receiving this cheerful little note to know that if you have the cash, they're still glad to take your money.) So if you need to refinance and your home has held it's value or you still have equity, now may be the time to make your move. In any case, your best course of action here is to speak with an experienced Loan Officer who can help you map out your options.
(Thanks Chase,I love a midafternoon aneurysm.)
In closing. this isn't a solution. This is another fucked up message from an industry that has issued funny money based on funny values to a huge percentage of the country, saying that they're not going to do anything about it. P.S. I want to kill all real estate brokers; they're useless and are wasting my air.
