Reply #9: They will be fine, until the $100.000 in equity is eaten up by a medical [View All]

[KoKo]

bill, or a disaster they couldn't forsee, or maybe just ordinary living given how bad things could get, and when they go to sell their house and it's worth maybe $25 or 50,000 less than they owe the bank because everyone else is selling because they are still out of work and no one can afford the inflated price anymore, what happens to them? Does the bank seize it and auction the house and their furnishings when they have to declare bankruptcy? What will they have left?

This is the worry. Homeowners living on "equity refinancing" with no guaranty that there will be anyone who will be able to afford the inflated price that they were expecting to get for their home. It's all over America, the inflated houses. Driven up in price just because interest rates are low and almost nothing for downpayment is required. But, when that ends and interest rates go up and folks can't afford the payments, or the area one lives in loses so many jobs that no one can afford a house anymore, the Broadmores and the rest of us will have to hope that someone gives us the cushion that the Corporate Crooks have gotten when their investments went bad and bails us out like Poppy and friends have done with Chimpy. I don't have much hope of that, so we have to believe that this will will not end in disaster and pray alot, or whatever that something comes along that replaces the technology boom and saves us.