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Tue Aug 5th 16:41 PM | Rating: 0 0
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Housing Crisis Likely to Wipe Out Two Decades of Family-Earned Wealth

When home prices go down is GREAT for homeowners and Good for buyers.

Why?

Say you are a home owner whos house has gone down from $700 to $350. (hypothetically speaking, not that it happens too often). Now the beautiful house you were eying the that beautiful neighborhood that was $300k away from your budget at $1M now is only $150k away from you and very reachable.

Now lets say its the other way around. You bought your house at $700 and now its worth $1.4M. Now the $1M beautiful house you were eying when you bought yours is now $2M which i $600k away. Now it is probably impossible for you to ever buy that house.

Rising house prices are only good for BANKS since they lend out more money and cash in more interest every month. And guess what? You dont pay? They sell your house and owe you NOTHING from your equity unless they sell it for more which is almost never the case. They will sell your $700k house for the $500 you owe in a heartbeat and you lose your $200k equity. They lose nothing.

And if you have mortgage insurance, they get their FULL equity back from the insurance YOU PAID for and again they lose ZERO while ruining your credit.

Housing bubble is TERRIBLE FOR HOME OWNERS!
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