Triangle Realtors how many of you have seen these situations when trying to sell a house? (Raleigh: credit, home equity loan)

[urbywan]

http://www.nytimes.com/2007/11/08/bu...borrow.html?hp

When you look at the numbers people owe on the homes that are being listed around here, do you see this type of activity? The house used as an ATM? we sure did in NJ and other areas. I alway remembered that when you took out a loan against your house it was for an emergency!! We NEVER would borrow money that was equity in our home!! Who wants to lose a home because you wanted STUFF and took out equity to buy more STUFF!!!!???

Kinda stupid!

[Funky Chicken]

I always thought the objective was to owe LESS on a house when you sell it than on the day you buy it, but that's just me.

[slynn41072]

Its just crazy what people will do. My girfriend and her husband took out a adjustable rate home equity loan so he could have a brand new $35,000 truck to drive to a construction site (it sits parked all day) . Now that rates went up they are having a hard time paying bills. He also gets laid off during the winter. Sad ,very sad.

[Frudy McRomson]

Originally Posted by urbywan

http://www.nytimes.com/2007/11/08/bu...borrow.html?hp

When you look at the numbers people owe on the homes that are being listed around here, do you see this type of activity? The house used as an ATM? we sure did in NJ and other areas. I alway remembered that when you took out a loan against your house it was for an emergency!! We NEVER would borrow money that was equity in our home!! Who wants to lose a home because you wanted STUFF and took out equity to buy more STUFF!!!!???

Kinda stupid!

As the article states: The United States has for years been running huge trade deficits while borrowing heavily from China and Japan. This makes Americans vulnerable to the possibility that foreigners could slow purchases of American debt, sending the dollar plummeting and forcing the Fed to raise interest rates. Some say the best way to avoid such a situation is for Americans to start saving more and spending less.

The price of oil isn't what it is because the Saudis want to stick it to us, or because we're not drilling in ANWR, or because of greedy oil companies. Both oil and gold are tracking the eroding value of the dollar. Gas prices too.

Saving more is a good idea if it means reducing or removing adjustable interest rate revolving debt. Unfortunately, unless it's in a high yield domestic investment, the rate of inflation will outstrip any realized gains.

When the gubmint publishes a 0.8% CPI rate, one almost has to laugh. Go to the grocer and ask them to increase the price of bread or produce by only 0.8%/year, or ask your health care provider and oil/natural gas company to do the same. People can't eat iPods or use them to heat their home.

[TuborgP]

This is the real crunch up here in Bubble Country. Houses in my old neighborhood may have fallen about 10% since we sold in early May. It is hard to be definitive because so few have sold. Weddings, College Tuition had become basic home equity financed expenditures. I can only speculate the impact this will have on colleges etc. I hear horror stories and don't know the accuracy etc. There is a major valuation crisis that will hit hard over the next year or so here. Baltimore and DC area are both in the top 25 areas to show a decline according to Fortune yesterday. With projections of a decline around 20%. I hope we have already seen much of that and that it isn't on top of what we have seen. I can only tell you the desire to flee to more stable environments have not diminished. Raleigh=Stability.

[nynraleigh]

I never understood this concept...taking cash out of your home to purchase cars, boats, and what not...very risky in any market, my opinion. I would consider taking equity out once the house was paid for, to maybe update a kitchen and the bathrooms...but just to go out and shop with, Crazy!

[TuborgP]

Originally Posted by nynraleigh

I never understood this concept...taking cash out of your home to purchase cars, boats, and what not...very risky in any market, my opinion. I would consider taking equity out once the house was paid for, to maybe update a kitchen and the bathrooms...but just to go out and shop with, Crazy!

And when people get common sense?

Fed concerned about credit crunch and oil - Nov. 8, 2007

[Funky Chicken]

The tuition thing is an EXCELLENT point. NOTHING is going up at a faster rate than college tuition and I gotta figure that at least in metro NY the single largest use of HELOCs is for the 30-40k per year that the "hot" colleges of the moment charge.

[urbywan]

Originally Posted by Funky Chicken

The tuition thing is an EXCELLENT point. NOTHING is going up at a faster rate than college tuition and I gotta figure that at least in metro NY the single largest use of HELOCs is for the 30-40k per year that the "hot" colleges of the moment charge.

Anyone who would spend 30 or 40K to send their kid to a hot college is wasting their cash! State school, then when they do graduate work they should get paid and have their tuition paid for in PHD programs. Because if you have great grades in undergrad work the top line schools will pay you to be in their graduate programs. And if you get bad grades in undergraduate school your parents should MAKE YOU PAY FOR YOUR OWN COLLEGE experience!

[bluedevilz]

Originally Posted by urbywan

Anyone who would spend 30 or 40K to send their kid to a hot college is wasting their cash! State school, then when they do graduate work they should get paid and have their tuition paid for in PHD programs. Because if you have great grades in undergrad work the top line schools will pay you to be in their graduate programs. And if you get bad grades in undergraduate school your parents should MAKE YOU PAY FOR YOUR OWN COLLEGE experience!

Lets see if I have all this straight.....

Everyone should live close to their jobs because....... you say so

The triangle is a bubble market because.....you say so

The only car worth driving is a Honda because.....you say so

Don't consider a private college, state schools only because.....you say so

Glad you have all the answers