Underwater

Today we found out that pretty much our exact same house in our neighborhood is going for $40,000 less than what we paid. Wait, they are asking that much less. Needless to say, we are very upset. Since we 100% financed our house this means that we owe more on our house than our house is even worth- hence the term 'underwater' on our mortgage. If we wanted to sell our house, we'd actually have to pay out of pocket at closing about 40-50k. Wowsers. I guess that's why so many people are foreclosing! I don't think I'm EVER buying a house again! The worst part about it is, we can't even 'refinance' our 2 mortgages into 1 (which was our plan) because our house is not worth enough- we don't qualify for Obama's refinancing program because our loan isn't owned by Fannie May or Freddie Mac, oh, and even if it were, we still are way to 'underwater' to even qualify to refinance to a lower interest rate. OUCH. I hate the housing market and the trap it has put us in!

We're not the only ones-- click here.