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It seems like just yesterday when the airwaves were full of advetisements encouraging people to use HELOC’s to live big.
Banks and Mortgage brokers were telling people night and day that they deserved to live large, and to purchace everything from new cars to luxury vacations using that useless asset known as home equity.
Funny how quickly things change, and now it seems as if the big borrowers are reaping the consequences of their gullability.
Almost 40% of homeowners who took out second mortgages are underwater on their loans, more than twice the rate of owners who didn’t take out such loans.
A report to be released Tuesday by real-estate data firm CoreLogic Inc., says 38% of borrowers who took cash out of their residences using home-equity loans are underwater, or owe more than their home is worth.
By contrast, 18% of borrowers who don’t have these loans were underwater.
Underwater is todays euphemism for being a financial zombie. Someone who is really dead financially, but is still walking around attempting to ignore that fact.
It seems like just yesterday when the airwaves were full of advetisements encouraging people to use HELOC’s to live big.
Banks and Mortgage brokers were telling people night and day that they deserved to live large, and to purchace everything from new cars to luxury vacations using that useless asset known as home equity.
Funny how quickly things change, and now it seems as if the big borrowers are reaping the consequences of their gullability.
Almost 40% of homeowners who took out second mortgages are underwater on their loans, more than twice the rate of owners who didn’t take out such loans.
A report to be released Tuesday by real-estate data firm CoreLogic Inc., says 38% of borrowers who took cash out of their residences using home-equity loans are underwater, or owe more than their home is worth.
By contrast, 18% of borrowers who don’t have these loans were underwater.
Underwater is todays euphemism for being a financial zombie. Someone who is really dead financially, but is still walking around attempting to ignore that fact.
The problem is that houses became "investments" and not "places to live in" as they should have been. Hopefully the country will rethink that now.
The problem is that houses became "investments" and not "places to live in" as they should have been. Hopefully the country will rethink that now.
Not everyone thought that way at all. While I turned a nice profit in 2003 on selling in CA, I've been in this same house for going on eight years.
Fortunately, I had a pushy realtor who told me I must live in X location. Well, you know what they say about location, location, location. It's conceivable I could get out of here without losing too much. I say this as a person whose house is paid for so I have a lot to lose in the process if things were to really go south in this particular city. In fact, on both Zillow and e-appraisal my house is just worth slightly more than what I paid for it, but I know one cannot rely on that. Part of my strategy is to NEVER view this property as a line of credit or an ATM. It's a roof over my head that no one can take from me unless I fail to pay my taxes, which I don't. Well, and as long as I have health insurance too that is. I sleep better at night this way.
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