Trapped

Posted by: Dean Foust on July 27, 2005

I suspect there are a lot of homebuyers (particularly investors and speculators) who believe that even if they’re buying in at the top of the market, they’ll be able to get out. Here’s one cautionary tale that I found at another blog site. In this instance, the sellers couldn’t afford to sell when their house dipped in value below what they paid. It took them ELEVEN years — including some years of two house/rent payments — to unload the original house for what they paid. An interesting read.

Reader Comments

Tim Schmitt

June 12, 2009 5:21 PM

I suppose there are a lot of us in the same boat. It is hard to get on with your life if you are stuck with a home you can not sell. I have plans to move closer to my aging parents and to continue my education in another state. I will not wait eleven years to sell my place, a foreclosure stays on your credit score for only seven years. I would rather suffer a foreclosure than let a house suck years off my life and take precious time away from my family. If my home does not sell in two years the bank can have it. There no longer is any equity in it anyways.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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