Life looks grand in the land of denial!

 A while back I had written a post titled "Your home is your castle not an ATM Machine" and shortly after that I wrote "When the wall comes tumbling down". Both of these posts were written about the same Sellers. Very nice young couple who unfortunately made a few bad decisions and ended up owing more money than their home is worth. The details of their dilemma are outlined in the posts above.

In a nutshell, they owe too much on the house. They listed with me at market value knowing we would need to get a short sale, they continued to get solicitations for refinancing even though they couldn't afford the current payments and had zero equity. After about 45 days on the market, they finally succumbed to the pressure and decided to go for one of the refinancing deals. I spoke to them about this and the entire reason for refinancing was to drop the payment by about $40.00, with no cash out, and buy themselves a little more time until their tax return came in. Their tax return would make a couple of more payments for them. So we took the house off the market.

OK, so yesterday I went by their house and it looks like either the refinancing went through or they got their tax return. How do I know? Well, they have a brand new fenced in yard, full of toys, for the kids and a beautiful new hot tub sitting on the back patio!!

My goodness! I really hope they won the lottery or something but I fear they just decided to take the tax return and spend it on more stuff they don't need. Maybe they were able to find a lender that could do the loan and give them cash back. Of course I'm not sure how that could happen since they already owed $195,000 on a house that might be worth $185,000, on a good day.

So, I'm not sure how this will play out for them. I suspect they will be calling me in a couple of months to see about selling again. Unfortunately, I won't be able to help them this time around. I hear this story way too often.

Lately, I've been turning down 3 to 4 listings a week because folks are upside down on their financing. Values are plummeting rapidly in Poinciana Fl. and the market is at a stand still. Nothing is selling. In April there were 37 closings out of 1,800 listings. Folks, that's 2%!!! When oh when will it all end? I wish I knew. It's getting ugly real quick. What can I do?

Hey, I know! I'm going to call my old Sellers and see if I can come over and relax in their new hot tub! Life looks grand in the land of denial. The end. Maybe!

All content copyright © 2007 – Broker Bryant Real Estate Ramblings

**Photo compliments of Nick "Duh" Appraiser

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