Quote:
Originally Posted by HardDrive
I knew my sister and her husband were badly underwater. I finally got her to reveal the ugly facts.
Took out jumbo, zero down, 40 year (WTF?!?!) mortgage in 2007 at 7%. Took out additional loan to cover balance at 9%. Original price was just north of $600k.
The home is in the Highland Park area of LA. Today they owe about $580k. Zillow says the place is worth about $450k. Payments per month are about $5000! Comps in the area are bad. Real bad. They live up on a hill, but the prices of homes in the flats kill their values....
They don't want to walk away. They have decent income. But those numbers....dear lord.....
Is there any scenario in the universe that would allow them to refinance to a better rate? We could potentially have my parents co-sign the loan. Any hope?
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That sound like a bit high for Highland park. I live in Mt washingotn, which is right next to HP. I have to get through HP to my house. I have been playing with buying and selling in HP for a bit. If the house is clean and does not need a lot of work, you can still get good money for it. 5-600K does not sound like HP. The flats really does not effect the value up in the hills. She may be in Montecito Heights, or Gavanza. those areas hold their values well pretty well.
Don't walk, try to sell if they can.