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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (1060)	11/16/2001 2:21:42 AM
From: bill	Read Replies (1) \| Respond to of 306849

Good article. A warning to be taken seriously. The last housing recession here and houses were being reposessed and resold for fifty cents on the dollar. Lots of bargains but by that time few people had cash. Lots of people lost their homes and stillowed the bank money on their mortgage. Nope, you can't just give the bank the key and walk away. You can pay 350,000 for a house, 35,000 down, pay off another 15,000, lose the house because you can't make the payments and can't find a buyer (one of you has lost a job), turn the house over to the bank. The bank may have to unload the property for 150,000. You've lost your 50,000 equity, you've lost the house and you still owe the bank 150,000. In 1987 the banks started pursuing people for the money owed. Scary as hell. At least it wasn't as bad as the Great Depression. My grandparents told me about houses being rented out for a dollar a year if the occupant would pay the taxes and heat. Those were houses without mortgages. Not to be too gloomy. If you've got a swack of cash, it's a great time to buy up properties and hold them until the upturn in the cycle. Think positive. A chance to become a real estate king.