I know. Fortunately it's not QUITE as tempting as blowing your paycheck... I don't have stats, but my impression is MOST people look at house equity as saveable.
Notable exceptions are damn predatory lenders, b*stards that prey on old and financially challenged for 14% mortgages that force forclosures. I had an acquaintance who sold his house in LA for $350k profit, bought another for 1/2 that, plus a car, free of debt, he thought. As an unskilled laborer, that was a lot of $$
His CPA forgot (screwjob #1) to tell him about IRS tax (screwjob #2), he got a predatory loan to pay it off (#3), lost his job, couldn't make payments, and predatory realtor offered to take his house off his hands to settle the forclosure (#4). Now he's living on an Indian reservation for free, and is broke, with little chance of every making his nest egg back.
My kids knew him - I tell them that story to show the importance of math and finance, in a predatory world. They are all a little better at math, now <g> |
