I want to first say that I do feel for the people who have purchased a home that is now worth less money than it was at the time of closing. We have seen this situation over and over again nationwide and I think there is no state that has not been affected in some way by the housing crisis. However, these are not the people I wish to discuss in this post.
I have noticed a lot of would be sellers and home owners out there who say that they have lost money and really haven't. These are home owners whose homes are currently not worth what they would have been at the height of the market 4 or 5 years ago but they are still not upside down. In fact they have a decent amount of equity in their homes and they would make a profit off the sell of that home.
The fact of the matter is that there are lots of home owners out there who would have made more money on their homes if they chose to sell them during the boom. However, I don't think it's fair to say that they lost money, because the money itself was never physically there. It was not a part of the original deal and it was never realized through any sell of the home.
Frankly, if you have good equity in your home and can still make a profit off of it, you should be happy about that rather than focusing on what you could have had. What if you lose the rest of your equity and you are upside down in the loan, that would be much worse than not making as much profit as you once would have.
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