Value plummeting fast in SW FL

[Joel Fraser]

Lived in NE FL, had the brilliant idea of investing in real estate in SW FL in 2004.Contracted with KB Home to build a new 2232 sq ft home in Lee county Florida where the boom was biggest for $189,000.For 2 years we heard them come up with new excuse after excuse watching the value go up to $389,000 with nothing to sell. Then the market started to drop and they finally started to build it. Bastards!They cost us a huge profit.So in 2006 we were stuck with 2 homes. We couldn't sell the SW FL home and we found a buyer in NE FL so we moved into the KB Home.We have literally lived off of credit since 2006 to live here. Visa bill up to $20,000. HELOC is up to $28,000. We have only $1,000 income and no way to afford mortgage any longer. We have a 30 year fixed 6.75 interest rate with the first 10 years interest only. We haven't paid a dime of principal. Oh yea. We did a cash out refi in 2006 and borrowed 80% of the appraised value of $308k and we have already gone through all that cash as well.We have 4 kids and the economy is decimated here. We recently had the home appraised and it came in at $140,000 but it has probably dropped since then.So for a home that we contracted at $189k we borrowed $254k and added $28k in Heloc plus visa bills. Should we ask the lender to lower the mortgage to its current value?We have family here that wants to help us. We both have an education and skills to work and earn a decent living if this economy recovers. Kids love their school here and we love the house but can't make the payments any longer because the credit has run out. We really never intended to move here. Had KB Home been honorable and built the house when they promised we would have had enough to pay off our NE FL home and live debt free. Peter has been paying Paul for us. We owe Peter alot of money.