Comments on: Buying a Home: American Dream or Financial Nightmare? http://achingdebts.com/buying-a-home-american-dream-or-financial-nightmare/ Survive the Tough Times, Get Out of Debt and Save Money Thu, 18 Aug 2011 17:01:41 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Financial Fool http://achingdebts.com/buying-a-home-american-dream-or-financial-nightmare/comment-page-1/#comment-9 Financial Fool Mon, 17 Dec 2007 20:21:00 +0000 http://achingdebts.com/?p=19#comment-9 JM, You are correct but for whatever reason, quite a few people refinanced and are either now facing foreclosure or will be when their interest rate rises. They felt pretty safe doing it as it's not normal for home values to fall. <br/>I would be interested to learn when the last time it happened. JM, You are correct but for whatever reason, quite a few people refinanced and are either now facing foreclosure or will be when their interest rate rises. They felt pretty safe doing it as it’s not normal for home values to fall.
I would be interested to learn when the last time it happened.

]]> By: JM http://achingdebts.com/buying-a-home-american-dream-or-financial-nightmare/comment-page-1/#comment-8 JM Mon, 17 Dec 2007 19:37:00 +0000 http://achingdebts.com/?p=19#comment-8 If homes have seen double digit gains in the past 3-5 years but have since seen a 30% drop in appraisal value, it only matters in 2 scenarios:<br/><br/>1.) For some reason you need to sell your home *right now*<br/><br/>or 2.) You stupidly cashed out your fake equity and spent it all on stuff like a Hummer or a new boat or even college tuition.<br/><br/>I can sympathize with the people in #1. I have no sympathy for those under #2.<br/><br/>For anyone else, the advice is simple: just don't sell your home right now. Markets are cyclical, and you will see your home value rise again. If homes have seen double digit gains in the past 3-5 years but have since seen a 30% drop in appraisal value, it only matters in 2 scenarios:

1.) For some reason you need to sell your home *right now*

or 2.) You stupidly cashed out your fake equity and spent it all on stuff like a Hummer or a new boat or even college tuition.

I can sympathize with the people in #1. I have no sympathy for those under #2.

For anyone else, the advice is simple: just don’t sell your home right now. Markets are cyclical, and you will see your home value rise again.

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