How Long will it take for My West Sacramento Property to be worth what I Owe?

Now there is the 11 Million Household Question. Why 11 Million Households? Because Nationally that is how many households owe more than their home is worth. 11 MILLION. That’s a big, big number.

  

As with everything in this market there is no one answer. I does depend on what part of the country you live in, how much you owe and what is going on with the market in your specific neck of the woods.

Let’s use the greater West Sacramento Metro-plex including West Sacramento County, Placer County, Yolo County and Eldorado County as an example.

Historically appreciation for the 100 year period 1903 to 2003 averaged 3-5% annually. Based on 4% straight line appreciation – which has never happened in the previous 100 years, and your home is currently 30% underwater it will take 14 years to be worth what you currently owe. 18 years if you are 40% upside down and 22 years if you are 50% or more.

Let’s face it, if you are 30% or more upside down in your West Sacramento home or if you have an interest only loan, you my friend are renting, not buying. Based on the numbers chances are good you will never own the West Sacramento home and your current house payment is more than likely 20-30% higher than if you really were paying rent AND in this scenario if something breaks you are on the hook for repairs not the landlord. Unless you are planning on never moving, if you are upside down 30% or more it really does not make sense to stay. With the Debt Forgiveness Act of 2007 expiring this calendar year it is really something to really think about.

To get a better idea of when your home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation. Call me today and sleep better tonight; you’ll be glad you did