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

To: Paul Senior who wrote (5227)	9/11/2002 4:30:19 PM
From: Conan	Respond to of 306849

Paul: You have to be careful on taking out 2nds these days. I was looking at some disclosures while considering a 2nd on my home. Some of the new terms I am seeing include the ability of the lender to call in part or all of the loan if there is a large change in housing prices. I believe this was a condition on a 2nd from American Express I looked at. Whether a lender would do this in fact I am not sure. I think they would be happy as long as you were making timely payments regardless of the value of the underlying asset. But it is something I would look out for under the scenario you discussed. Otherwise, I like the idea of getting liquid without the normal transaction costs associated with selling property. I also like the idea of preserving a low tax basis. Conan