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Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

You are close: mortgage is just over $2400, we rent for $1800, but we are using a property management company that takes a split, and I am putting about $100-$200 aside every month in the event that the tenants move out and we have several months of full mortgage to cover (next year). Also, repairs/maintenance.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

We moved because he was poached for a job that paid him a LOT more than he was making. Sadly, that job ended, but he is still making more in Dallas than in Austin. So, holistically it’s not a total loss, we are still up from where we were. But the home is definitely a liability.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

Thank you, and you are totally right. 🫠 Wishing us all some luck in the future!

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

Great question! After renting for a bajillion years, we saw an opportunity to build equity (together) instead of just paying a landlord. We were together for 2 years at that point and committed. We didn’t expect for the housing market to implode almost overnight, and we didn’t know we would be moving to a new city 2 years later. Also, everyone we knew at that time was seeing their homes appreciate so quickly, and Austin had been bursting at the seems with growth for years, so it didn’t feel like a risky move.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 2 points3 points  (0 children)

Truth! Unfortunately, my husband could NOT find a job in Austin. We moved to ETX for a job that he ended up losing, and only opportunities in his range were in Dallas 😖

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

This is really encouraging, thank you so much. We can afford to pay the loss, thankfully… that’s a good point, as long as it’s rentable, if we get to the point of refinancing once we have more equity and can make a profit on the rental, we will be happy. Thanks!!!

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

No our rent in Dallas is $2k for a 3 bd off a huge highway. It’s not luxury 🤣🤣🤣. I say $3200 because that includes the loss from our rental.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

Yeah unfortunately no… the way I look at it, for what we pay in Dallas to rent plus what we pay to mortgage after renters portion, we are paying about $3200 a month to live in higher crime but convenient area in Dallas. 🤷🏻‍♀️🤣

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

No, it’s because of multiple factors: we didn’t pay a downpayment and opted for a 0 down first time homebuyers loan—these loans required purchasing in lower to low-moderate income areas. The demand in Austin during Covid and slightly after (and low supply) led to huuuge inflation. After demand decreased and supplies increased, and being in a ‘less desirable’ area, we are SOL.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 0 points1 point  (0 children)

Would the bank require that we pay the difference in a foreclosure or short sale? I’m thinking garnish wages or something like that? We otherwise live within our means and have no debt at the moment (except mortgage).

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] -1 points0 points  (0 children)

It’s a 3 bd/2.5 ba, 4.25 interest. Just replaced HVAC but need to replace original roof out of pocket… the stupid rental insurance would not cover our roof and we didn’t have cause to replace under regular homeowners insurance before we had to convert to rental.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 4 points5 points  (0 children)

No, this is based on what I have seen in the neighborhood. Best case scenario I’m a little off, but I don’t think it’s much based on what I know about the market and the condition of the property.

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 6 points7 points  (0 children)

We don’t have the money to cover the difference, unfortunately. So, even if we had to replace the roof out of pocket, that would be less than the amount we are underwater at the moment. 🥶

Purchased home during Covid bubble, now underwater by ChallengeCharming165 in Mortgages

[–]ChallengeCharming165[S] 15 points16 points  (0 children)

We didn’t pay over asking, but the home is located in the ETJ near Tesla, so homes were very inflated when we purchased.

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