The rapid increase in home values has proven to be as good as
lottery winnings for homeowners in many areas. But look out -
old tricks may no longer fool anyone.
The real estate boom has bailed out many folks who have been
caught between higher bill payments and flat incomes. These
homeowners have been able to tap their increased home equity to
support a life style that they really could not afford. Home
equity has provided the juice that has been keeping our national
Home equity loans have allowed home owners the chance to pull
out cash that they then spent on new cars, furniture, vacations
and other luxuries. Another boost to their life styles was
generated when home owners refinanced using adjustable-rate
mortgages that cut their monthly payments. They seemingly had
more ready cash to spend.
Consumers who had buried themselves under a mountain of credit
card debt have been able to evade foreclosure and bankruptcy by
quickly selling their homes. With the proceeds from the sale
they've been able to pay down at least some of their debts and
gain some financial breathing room.
All that was yesterday! Take a close look at what's happening
today. In many areas of the country real estate prices are
flattening out and even beginning to decline in some areas. With
little or no increase in home equity, or even vanishing equity,
home owners may find themselves in a tight spot. They just won't
have that reservoir of cash to fall back on.
Oh gosh, now it gets even worse. Because personal debt seems
nearly out of control the federal government has mandated that
credit card companies increase the minimum payment required on
credit card debt. For many people that payment will now be twice
what it has been in the past.
Wait, there's more! Energy prices are at an all time high and
health care costs are zooming out of sight. A growing number of
people are stretched thin and actually are spending more than
they earn. People who are living on the financial edge could be
in big trouble without any equity in their homes to use as
This bad news is good news for real estate investors who are
looking to buy property just before foreclosure. Many homeowners
pulled out all their equity (sometimes as much as 110% of their
home's value!) and now values have declined and they are upside
down... they owe more than they can sell the house for. They
can't pay their debts and they can't find a buyer for their
Smart investors know how to help these folks and make a little
profit in the process. We are entering one of those rare times
when the opportunity in preforeclosure real estate will be mind
New Home Construction Loans 101
When you are ready to build your first home or that dream home
that you have been wanting for so long you will probably wind up
needing help with the financial part of the building process.
The funding for your new home is available through new...read more
Home Equity Loan Refinance - Important Facts
Refinance refers to applying for a secured loan intended to
replace an existing loan secured by the same assets.You must
speak with a finacial advisor before you decide to refinance.
Refinancing the loan you had taken at higher rates is a...read more
Why a Debt Reduction Loan makes good financial sense
There are many good reasons why a debt reduction loan makes good financial sense. Many people carry a number of credit cards with high balances and high interest rates. Making even the minimum required monthly payment can be difficult. Credit cards...read more