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

By golfplan18   2013 Jan 22, 11:14pm   ↑ like (2)   ↓ dislike   720 views   1 comment   watch (0)   share   quote  

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...

#housing

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1   PockyClipsNow (11/11 = 100% civil)   2013 Jan 23, 10:11am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

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