Recently, I wrote a blog post of my experience with Emmett Peck, a Chase Certified Financial Advisor who blamed people walking away and short-selling their homes as the cause of the US financial and economic crisis.
In this blog, I will make it clear why my situation is as such that I have been forced to sell my home even after having put close to 40k in down payment for a 350k home and making the mortgage payments for the last 3 years.
The house is over 50% underwater so here's some basic math rounded up to even numbers for simplicity purposes.
1. Mortgage balance: $300,000
2. Monthly payments including HOA, real estate taxes and mortgage insurance: $2,987
3. Home currently worth: $155,00
4. Total amount underwater: $145,000
5. To rent an equivalent home in the area: $1,200
6. Total monthly savings from short-selling/walking away: $1,784
7.Total years to break even from buying the home at $350k = 81 years
(while paying #2 every single month for the next 81 years)
* #7 is based on a conservative 2% annual appreciation (which has yet to happen) and 5 year time frame to remain in the home.
The timeframe to #7 for break even will decrease with every percentage point of annual appreciation... which I am sure you already know this.
*For a best case scenario to happen which is a 20% annual appreciation to happen, it will still take me another 9 years to break even.
Total savings in 9 years by selling/walking away now is $192,672 by renting instead of having to pay the mortgage.
With the information above, Emmett Peck -- would you like to take over the home and continue paying all of the above? -- I would happily hand it over to you.
So Emmett Peck, tell me how is this my fault based on your expert opinion and comment during our meeting on October 27th 2011 in your office?
1 comment:
September 2012 ****Looks like he is back at it again, he ripped me of $21,000 on a car. He is working with Chris Biddy of Athens,Ga and they both have warrents for their arrests contact the Jackson County Sheriffs of and speak with their investigator if either of them has ripped you off!! Hopefully they will be in cutody soon and the many victims can get restitution
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