Are we screwed?
I'm recently married and before my husband and I met he bought a townhome. This was June of 2007, when the home prices were at their peak. I'm so aggravated with this situation because I never in a million years would have done what he did and now I have inherited the problem. He bought it when he was 22 and making big bucks (why buy a house at 22 when you're making good money...ugh), some of that due to overtime. Now he no longer gets overtime because of the economy. We're still able to pay, it just hurts, especially since today we could have a nice single family home with a yard for the same price we're paying now.
He bought it for ~$216k, currently owes about $200k and I would be surprised if it were worth $150k. There are three models of these townhomes, he has the medium sized one. He also has all of the bells and whistles - stone fireplace, hardwood floor, cherry cabinets, spa shower etc. It's a beautiful home but, I can't imagine who would buy it. We live in a fairly small middle to lower middle class town with lots of younger couples and families. The other places in our neighborhood are on the market right now for 90k - 110k. Right next to us is an abandoned unit, and a few down there is a bank-owned one for sale at $70k. No one would buy our place if they can get the end unit bigger model with basic stuff for less money, right? Also, THERE IS NO BASEMENT. Most of the other buildings in the neighborhood have basements but I do not believe our street does.
I know it's silly because there's nothing I can do about it right now but it is starting to depress me. We don't treat this as our first house because we want to get out ASAP and don't want to spend a lot of money on it. We can't get a dog because it isn't big enough. Kids are out of the question right now. We're not getting any younger, and I feel so stuck. I feel like we'll be here for another 10 years. In 3 years our rate goes up so we have to be out by then. We obviously have to try to wait it out but I don't have high hopes. I really don't think anyone will want this place.
He was in the mortgage industry at the same time he was in college. He's more familiar with housing than the average person and he is confident we'll be fine. My mom has been a realtor most of my life so I am very familiar with it. I don't have the confidence he does.
His backup plan is to get a loan to cover the remaining amount when we sell, he said foreclosing and renting is out of the question.
I'm looking for honesty in what you think of this situation, and please....anything that may give me hope.