Their dream home quickly became a nightmare. They found themselves significantly upside down on their home. In Loudoun county prices have fallen farther then other DC area locations as it is a far outer suburb. These far outer suburbs (exurban) locations are will continue to be hit particular hard by the declining housing market. Just watch Queen Creek, Arizona.
Jeffrey Taylor and his wife bought their dream home in Purcellville for $538,000 last August. Now they have to sell it because they are getting divorced and neither one can afford the mortgage alone.
The most they could get for it was $430,000. After paying all the real estate commissions and taxes, they will still owe the bank $118,000."Five months later, I lose $100,000," Taylor, a high school teacher, said. "I don't think I can take $100,000 into the stock market and lose it faster."
Friday, April 20, 2007
More Homeowners Upside Down
As housing prices continue to fall in the Washington area, recent home buyers who wish to sell often find themselves 'upside down' on their mortgage. Via the Washington Post:
Posted by David at 6:55 PM