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Using Your Home Like An ATM

By Susan McGuire

Real Estate Agent with HTT Realty

April 23, 2008 06:15 PM

It does not surprise me how many people today have used their homes equity as an ATM. They check their balance and then they make a withdrawal. It would seem that they are not making the withdrawls for investments or re-tirement but just to continue to make it. It is my opinion that the recession should have hit us long ago but since we could make withdrawals from our ATM Homes that we prolonged it. Now that the homes value is falling out people can't afford to live without their ATM withdrawals and are scrambling to figure things out. What do you think?

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Bob & Carolin Benjamin

Benjamin Realty LLC - Gold Canyon, AZ

East Phoenix Arizona Homes

You are right. This is one of the reasons why the market is where it is. People used their homes like an ATM and refinanced and the market changed.

Apr 23, 2008 06:20 PM

Tom Davis

Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE

FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Susan that is something isn't it?!?! Gee well Good Luck To All Of Us In AMERICA!

Thanks Susan!

Tom Davis - A Delaware Realtor

PS- I like your "Atm" thing!

Apr 23, 2008 06:22 PM

Christine Hart Howlett

Painesville and Eastern Lake County - Painesville, OH

Keller Williams Greater Cleveland NE

Everyone assumed that the value of their homes would increase. History told us that. So, big surprise when the value went down and they now owe more than their homes are worth. Let this be a lesson to future generations so history doesn't repeat itself.

Apr 23, 2008 06:25 PM

Ron Mackey

Connect Financial Services - Roseville, CA

You are exactly right. Unfortunately I did the same thing. Now I did so because the market turned and I have a family. The real problem comes when the bank says no more. Even if you still have room in your line. Now that's a problem.

Apr 23, 2008 06:38 PM

Ron Mackey

Connect Financial Services - Roseville, CA

Apr 23, 2008 06:38 PM

Anonymous

Richard Dolbeare

It couldn't go on forever but it was a good ride for many while it lasted. Now that it's over there will be less spending to keep our economy humming. Are people talking recession???

Apr 23, 2008 09:16 PM

Thomas Recke

Pillar To Post - Aurora, CO

ACI

Unfortunately (and I am just as guilty as the next guy) our incessant "gotta-have-it-at-all-costs" mentality is effecting the economy on a huge scale. When did we, as Americans, learn to "thrive" outside our spending ability? My goal in the next six months is to seriously evaluate my own spending ability and live well UNDER it. My wife and I haven't yet tapped into our equity and probably won't out of fear!

I hope everything is working well with your client! Please let me know when the plumbing issues are fixed and I'll swing by to update the inspection report - as always at no charge to you or your buyer!

-Tom (Pillar To Post Professional Home Inspections)

Apr 24, 2008 04:34 AM