The financial analyst in that article you linked to helpfully pointed out "if you can't make your morgage payment, putting your house up for sale isn't a solution." No doubt that's really good advice, but he sort of neglected to suggest what you should be doing if you're in that spot. Because it seems like either way you're going to get foreclosed without some kind of alternate strategy.Totally OT, but does anyone know where to buy those Mooninite 1-31-07 Never Forget t-shirts?
It's all about cycles. Now some of the speculators who were buying houses to "flip" them are getting caught. Oh well. It happened in the 70's, 80's etc. Houses were overpriced and now they'll come down.
How many land speculators do you know? I don't know any, but a hell of a lot of ordinary people who bought houses to live in, and were forced to pay a price they couldn't afford for a tiny house and won't ever get that back now, are the ones getting squeezed.
Never buy with "no money down". Never get an adustable mortgage. Plan on your first house being the house you die in, if your wealth increases great you can move to a better house, if it doesn't you're still all set. You never invest in a house, you buy it to live in, "invest" in the stock market.
I've heard so many people say the opposite thing...If you invest in the stock market and it crashes, you have nothing. If you invest in realestate and it crashes, at least you still have a house. I think the important message is really to "invest only what you can afford to lose." Personally, I plan on investing in a little real estate when I get out of college - if ever I can afford it LOL
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