Sunday the Orlando Sentinel had front page news with the catchy title "Did Appraisers Juice The Florida Real Estate Market" and as an added bonus on the Sunday front page there was a negative article about the luxury community Bella Collina in Lake County, Florida just outside of Orlando.
Back to today's article...
I don't understand why it comes to the surprise of anyone that mortgage companies are putting the brakes on homeowners and lowering their home equity credit lines. Have these folks been asleep for the past year? Even 5th graders know that the real estate market has been declining and housing sales are down.
How can banks continue to allow homeowners to tap into these lines of credit, when the market values are decreasing? They can't and now we are seeing that they won't.
The bigger question for me, is when did we start seeing our homes as cash machines? When did we start thinking that we could use the equity in our homes to buy boats, luxury cars and vacations?
My 86 year old mother-in law lived in her home for over 30 years and paid off her mortgage. We encouraged her to take out a home equity line to update her home and re-surface her pool, but the money went back into the home, not on the dream vacation to Hawaii that she always wanted to take.
Why do we see things so differently? Are we all trying to live beyond our means or is the cost of living so high that using our home equity is your only choice?
Please contact Cas and Debbie for all of your real estate needs in Seminole County, Lake Mary, Sanford, Longwood, Altamonte Springs, Casselberry, Winter Springs, Oviedo, Winter Park, Maitland, Apopka and Orlando.
407-758-1020 or Debbie@CasAndDebbie.com
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