Wednesday, March 31, 2010

"Hey guys, is this normal? Day turning into night sort of end-of-the-world type weather?"

Disheartened doesn’t begin to describe it. Worried? Doesn’t touch it.

It all started when we got our property tax assessment, with its black declaration of our loss glaring at us from the folded blue paper. How thoughtful! They color coordinated their statements to match their taxpayers: black and blue!

What it said was that this year our assessed value is only 63% of what we paid for it. Next year, the estimated value is only 40% of what we paid for it.

In short? We freaked.

We started saying the F word.


Then, after we stopped hyperventilating and the oxygen returned to our brains, we pulled the trigger finger back.

We have really good credit. Which makes it even more sickening/pit-in-my-stomach inducing to think about destroying it. I’ve never felt more chained to my underwater home. We’ve looked into short sale, short refinance, streamlined refinance. The only real option we have at this point is a loan modification, which will (also) dent our nearly flawless credit.

“Good credit” is something I’ve always prided myself as having. Has good credit gone the way of the gold standard? Am I now old-school to think of credit as my calling card, the thing that will open doors that would otherwise be closed to me? Will clinging to that (perhaps obsolete) ideal mean I will drown down here under all this water, chained to my house? Am I stupid to apply word-is-my-bond ways of thinking to the mortgage crisis? Do I just wait it out and see what happens?

I truthfully don't know the answers to any of these questions. . .

So, in the meantime, we're looking up rates, what people are saying about the guilt of walking away, and just how many homes are underwater (51% in AZ). Apparently, I'm not the only one wondering whether to wait it out or walk away. It's hot news in this hot state.

[Title quote is from "Lost" (TV)]


Danielle said...

I'm really sorry about your home situation. I can only imagine the temptation. But if you can make the payments and it isn't a financial burden/impossibility for you, is it worth ruining your credit to walk away?

As far as credit goes- I'm thankful my dad taught me that good credit was as important as holding a temple recommend. (okay, not quite that extreme, but almost!) Over the years I've been surprised at how much a good credit score can save you money. Even just setting up the utilities for our house-- everybody waived the deposits because our credit was good, saving us hundreds of dollars right away!

Trina said...

i think that even if your credit score were to go down it is probably still higher than the avg right now with all the crap ppl are going through

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