Headlines of Bad Memories!

 

"Homeowners gain over $620 billion in equity in second quarter"

I read that and it took my breath away. Literally, I inhaled and thought...oh sh*t.

I've been in the Real Estate industry long enough for that statement to cause concern. When we had a quick abundance of equity in homes almost 15 years ago a lot of people took out lines of equity. And, subsequently, a lot of people couldn't pay those back...or chose not to...when values plummeted. 

Now, nothing is telling me we are going to plummet in value. But, everything is leading to a correction in value. It's inevitable.....experience tells me this.

So, my reminder in this blog post today is to be cautious. Be wary. Be truthful. 

If you have to tap into your home equity, for whatever reason, be sure that if values take a wee dip that you will still pay it back. Please do pay it back.

IMHO it shouldn't be any other way.