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Equity Rich, and Cash Poor, You are just Burning away Money!!

By
Mortgage and Lending with Thomas R. Weiss

                                MONEY BURNING      

 

Consumers, It's wake up time.. How many times have we heard someone say, My House is Worth This Much! I know I heard it almost Everyday, and it was a sad Joke that was played on the Entire U.S. Economy. We were convinced that we could use our Homes as Personal Piggy Banks, and we would never Go Broke. Wrong! You jeopardized your Roof over Your Head, and now no one is to blame but Your self.

This is the kind of Image your Children have of their homes,they don't think Money, they think Friends, and School, and because of lack of Responsibility, and Some greed, you have Liquidated your Home of it's most Precious Asset, It's Equity!!! which is, and was your Children's Future, as well as Yours.

            Happy House

I watched a Show last Night, I think it was Suze Orman, I can't remember, but there was a Gentleman who came on the show, and said he inherited $1.2 Million Dollars, he paid off his house, and had Zero Debt. One day he realized that he had No money left, and he said His So Called Mortgage Broker Friend had talked him into Refinancing his House, and basically pulling out all of his Equity, which left him $425,000 in the Hole, and now he is in Fforeclosure. (With Friends like that, Who needs Enemies?) Perfect Example here was that he used up all of his Money, and Now he has used all of his Equity as well.

I had spoken to so many Realtors through Active Rain, and they all seem to have the same View as myself. The sellers of Home "A" want $300,000 for their home, but the Appraisal is only $230,000. These clients Owe $280,000 and they are mad because they want what they want, and said they will find another Realtor that will get them what they want. The problem here is Very Simple, If you as the consumer, Refinanced your Home, or did an Equity Line, and you used the Cash, Then don't expect it back, Because you used it already!! What did you expect, that your home was always going to go up in Value? You are basically Equity Rich and Cash Poor!

 

Try and accept Responsibility for the actions that you have allowed, and with this you will find that you will most Likely not put yourself in this situation again. Please Remember your Homeis not Your Personal Piggy-Bank..

Call Anytime to Discuss your Financial Needs, Whether it's Purchasing a New Home, Or Lowering the Rate on your Existing home. I am available 7 Days a week..

 

 

Thomas R. Weiss

Licensed Mortgage Broker

FL. TN.

tom@provagio.com

Office 561-968-6683

Cellular 561-310-0315

    

Show All Comments Sort:
No Longer Active
Real Estate - Fallon, MT
Tom... Well said... I look around at all the fancy cars and exotic vacations people take knowing full well where they came up with the cash.  Most drain the house when they are feeling broke while others switch jobs and deplete their retirement savings...  When trouble strikes they can only blame their careless ways.
Nov 24, 2007 03:54 AM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
I agree Tom. People need to look at their spending habits.....I have not really been a vacation, BMW gal...and I live in a small townhouse. I live simply and yes, looking at ways to budget now that business has slowed down. No matter what....there is no one to blame but self when tapping into every available penny from a house :)
Nov 24, 2007 04:17 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
I saw her last night too. Wow, she' really giving real estate advice now. Tom, I tell my sellers that too. Hey you already spent your equity, now you are paying some of it back.
Nov 24, 2007 04:50 AM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert
Tom, Sellers can want all that they want for their house, but the reality is that just because you want it does not mean that Buyers will pay it.
Nov 24, 2007 11:02 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Tom- great graphics! What a great post! I see it everyday. Well, I think that it is your home and you should do all that is humanly possible to keep your home, especially if you have kids, what are you trying to teach them? What example are you setting? Get  a life, be responsible., pay your mortgage, get a second job, get into network marketing, do something! Stop drinking beer, smoking cigs and pot, that stuff is expensive! Cut down on your Starbucks, save it all to make your house payment! Katerina
Nov 25, 2007 01:20 PM
Phillip Gilgeours
Brooklyn, NY

Well if you look at it Real estate is also a pyramid. You pay for your MLS, desk fees if your in a office that requires it, You also have to split your commision with a broker and on top of that some offices you have to split a transaction fee. Theres insurance such as E&O insurance you have to pay for. Every year you have to pay for your mls dues and every 2 years you have to renew your License. In some offices you have to pay your dues every year too. All of this money your paying goes to a over head like in a pyramid. So I really feel its how you work the business.. Theres many people in the Real Estate Industry who claims that Real Estate is bad because there not making money when in fact Real Estate is always good. Its how you work the business and the people within your network. Weather your selling houses, Rubber bands, Soap or Mortgages its how you work the business! If all Pyramids/Multi Level Marketing was bad then why are so many people in Real Estate waiting for that big break that is surely taking them a long time? This business is not for them because they dont know how to be an agent or work the business. Why do you have companies like Mary Kay, Amway, Avon Herba life and Monavie topping the charts in Direct sales and been around for many years? Oh and are you guys aware that Real Estate Professionals are in the direct sales business which means the peoples business? Once you believe in the product that you are promoting or selling your are going to succeed. Im sorry but, I also work in a MLM at the same time and I love it because I offer my clients not only my Real Estate Product Knowledge but it helps my business to establish a personal relationship with them which keeps us in contact for a long time which leads to referrals. Its funny because Ive been an agent over 4 years and I am still with the same company when I started and many agents from other franchises were judgmental about the company I am with stating it was going to not exist for long and its only growing. Anyway, everyone God bless and stay encouraged

Feb 13, 2011 05:48 AM