Home Equity

Is The Home Equity Loan Game About to Explode?

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 economy afloat.

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 emergency cash.

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 home. Ouch!

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 boggling.

Mark Walters explains the exciting opportunity in preforeclosure real estate investing at http://Foreclose.2freedom.com

Home Equity News:

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Home equity loans drying up for some - Business - Personal finance ...
Like many homeowners during the housing boom, Lynnette Madden and her husband decided to open a home equity line of credit about a year and a half ago as ...
Americans' home equity near a record low - Business - Real estate ...
WASHINGTON ? Falling U.S. home prices have shrunk equity so much that the proportion of their homes that Americans actually own is near its lowest point ...
Home equity lines have dried up across U.S. - Business - Personal ...
Home equity lines have dried up across U.S. As home prices collapse, banks cut off credit, further souring the economy Below:
Late payments for home equity loans rise - Business - Real estate ...
WASHINGTON ? Late payments on home equity loans climbed to a 1½-year high in the opening quarter of this year, while delinquencies on credit card bills ...
Retirees no longer count on home equity - Business - Personal ...
Many Americans have recently found themselves changing retirement plans after losing a substantial amount of home equity as the housing market and the ...
Equity in Americans? homes falls to historic low - Business ...
NEW YORK ? The equity Americans have in their most important asset ? their homes ? has dropped to its lowest level since the end of World War II ...
Students get creative to pay off loans - Business - Personal ...
Lines of credit typically work like a credit card, with a limit and a revolving balance: the average home-equity line of credit currently has an interest rate ...
Use of home equity hits a four-year low - Business - Real estate ...
Use of home equity hits a four-year low Freddie Mac report cites falling residence values, stricter lending standards Below:
Ford, Toyota are pinning their hopes on China - Business - Autos ...
NEW YORK ? Ford Motor Co. plans to build a new assembly plant in China ... $30K home equity loan FICO: 5.75%
Cities sue, invest to stop foreclosures - Business - Real estate ...
These stem from lost tax revenue and jobs as well as slower consumer spending that come with home equity declines, and don?t even include the financial toll ...

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