One man's mortgage debt is an entire neighborhood's equity


By golfplan18   Follow   Wed, 23 Jan 2013, 7:14am   267 views   1 comment
In Irvine CA 92620   Watch (0)   Share   Quote   Permalink   Like (2)   Dislike  

http://ochousingnews.com/news/one-mans-mortgage-debt-is-an-entire-neighborhoods-equity?source=Patrick.net

Residential real estate is generally valued by comparable neighborhood sales. When a property sells for a new high price, it doesn’t just affect the value of that property, it impacts the value on all similar properties within a mile of the new sale. During the housing bubble, neighbors cheered each new higher comp because it added to their (illusory) net worth. With unrestricted access to equity with no-doc loans and 100% LTV HELOCs, everyone near a new high comp was basically given free money. The late arrivals all eagerly waited a greater fool to come along and buy at an...

Viewing Comment 1-1 of 1     Last »     See most liked comments

  1. PockyClipsNow


    Follow
    Befriend
    19 threads
    1,582 comments
    Los Angeles, CA

    1   6:11pm Wed 23 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    The home equity wealth was no illusion unless my bank statements are fake. All u had to do was click the sell button and rent.

golfplan18 is moderator of this thread.

Email

Username

Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail p@patrick.net   Thank you for your kind donations

Page took 26 milliseconds to create.