At the height of the real estate boom, double-digit rises in home equities meant customers could pull out money from the increased home equity to help themselves and help the economy by making major purchases.
Well, no more.
We have seen the end of this life style that they could really not afford. The equity ATM card from these homes have completely vanished and that is why we are in perilous times as far as the economy goes.
Conditions are changing, in many areas of the country, real estate price levels are flattening out and even not rising in some real estate markets. In the Washington Metropolitan area real estate prices have become somewhat stable but still the consequences have affected million of families across this nation.
With little or no increase in home equities, . . Homeowners could never find themselves in such a tight spot like the one today.
For the first-time since the 1930's depression real estate is being tested by the number of foreclosures and homeowners being underwater.
Some people are even questioning if being homeowners these days is more of a liability than an asset?
As a seasoned veteran Real Estate Investor/Broker specializing in Distressed Properties I came to the conclusion that real estate being used as a primary residence should not be looked upon as an investment comparing to stocks or commodities.
We all need a roof over our heads and we will always have to make an investment in a monthly basis for this. . .(unless you are one of the few fortunate that do not have a mortgage on their homes)
Take it as it comes. . You have a house. You make it a home and if it performs as an investment on the long run. .then consider yourself lucky.
If you are trapped in a situation where you can't pay your mortgage payments /debts and you are desperately seeking a solution?
You should consult with an experienced professional that deals with distressed properties to give you all the options you may have at this point.
Understand that this applies only to real estate. .. you may have to combine your situation with your current economic situation where an experienced attorney should be consulted to cover all your bases.
The worst step I see many people take in INACTION
Don't paint yourself into a corner and once you run out of money.. and only then ask for help