Wow! I'm VERY excited!
Our house went on the MLS last Thursday of the previous week and by Tuesday this week we had an OFFER!!!
My house is a short sale. The buyer offered $330,000 less than what we owe on our house. They offered about $50,000 less than what we listed our house for. We counter offerred $30,000 more than their first offer. They accepted. So our total loss will be $300,000.
Unbelievable! We are going to sell our house for the exact amount we paid for it five (5) years ago - so no total appreciation at all over five years! Of course the house appreciated up (inflated up) and then depreciated down - deflated down $300,000 over the last 18 months. Even if we had never refinanced our house nor taken out second mortgages or refinanced those first and second mortgages we still would not have gained anything.
You can argue that all the second mortgages we took out are gains in income. So I tried to account for the total $300,000 in losses (refi's) here:
- 45,000 - 3 refi's of fees to lenders, brokers, escrows, etc. expenses = $15,000 each time
- 56,000 - prepayment penalties multiplied 3 times
- 36,000 - negative amortization loss over 3 years starting in 2003
- 30,000 - About $30,000 of bad luck, bad decisions, broken down cars, medical bills, etc.
- 36,000 - 2005 through 2007 of wasted money in Payday loan fees = legal extortion
- 97,000 - subsidized my income over four years = about $24,250 a year or $2,020/month to support a mortgage payment that has been $5500/month for almost two years and was about $3500/month four years ago.
And that's the best I can come up with looking back the last five years on what happened to $300,000 from refi loans because I sure don't have anything to show for it.