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Forum Post: The Best Job to have in 2014 and how it is about to destroy millions of homeowners.

Posted 7 years ago on April 17, 2014, 10:22 p.m. EST by DebtNEUTRALITYpetition (647)
This content is user submitted and not an official statement


HELOC's (Home Equity Line of Credit) are coming due and homeowners who are Equity rich but liquid poor may be losing their homes even though they have plenty of wealth in their homes and pose no risk to the banks with a RE-HELOC.

That seems odd, the banks seem less interested in deals that have less risk of foreclosure while wall street seems more interested in deals that have more risk to others but they win no matter what happens.

The article link also takes you to the Occupy Blog that I created 2 and 1/2 years ago that used the RSS feeds of around 175 Occupy blogs so that Occupiers from around the world could keep in touch with each other more easily, and more quickly.



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[-] 2 points by Narley (272) 7 years ago

My house is paid for. It took twenty-two years for us to do it. We are also retired and living on a fixed income. Our home is worth six times the original purchase price. We are fortunate to live is an area that wasn’t hurt much by the real estate crash; In fact our city (Austin, TX) is experiencing a real estate boom due to so many people moving to Austin (too many people actually).

So, my message to homeowners is to never get a large home improvement loan. I’d set the limit at $10K. Do only necessary repairs and upgrades. You don’t need granite countertops or $10K bath\showers. Shy away fast talking loan officers, they don’t have your best interest at heart. Basically stay completely out of debt if you can.

[-] 1 points by DebtNEUTRALITYpetition (647) 7 years ago

Keep in mind, you paid property tax on the home every year, home insurance, maybe some other form of insurance as well, did maintenance, replaced items as needed.

You probably put in the equivalent of the value of the home in those 22 years, so may we assume your home went up 3 times in value in 22 years.

Plus, it looks like you bought in the early 90's right after home prices had just plummeted. You buy a couple years earlier than you did, and maybe your home only had gone up 4 times in value, minus all the payments described above, aka double in value.

Most importantly, the government does not seem to want that money parked in the home put back in the local economy, even when it is done in a responsible, slow mode.

My concern is there are people out there who could simply RE-HELOC their existing HELOC and be fine, and since the HELOC is first lien, there is virtually no danger to the investor over losing their investment.