Villages of Urbana Homes For Sale | 2008 vs. Now: Are Owners Using Their Homes as ATMs Again?

If you are looking for a home in the Villages of Urbana. Let us share a secret with you. When someone becomes a professional real estate agent, they make a commitment to their clients from the moment they first connect, whether it is, first-time homebuyer's, who are very excited to purchase their very own home.... or seasoned Investors who are trying to build equity with key purchases and increase their portfolios. What is important for you to know is that your main purpose is to find the right real estate professional that will dedicate time and energy to bring exactly what you are looking for. Take your time and pick the one that has that commitment deep in their hearts

To show this commitment to my clients, We bring the latest technology, know-how and information allowing me to bring the best possible outcome on every real estate transaction we perform.

Today, I would like to talk to you about 2008 vs. Now: Are Owners Using Their Homes as ATMs Again?

Over the last six years, we have experienced strong price appreciation which has increased home equity levels dramatically. As the number of “cash-out” refinances begins to approach numbers last seen during the crash, some are afraid that we may be repeating last decade’s mistake.

However, a closer look at the numbers shows that homeowners are being much more responsible with their home equity this time around.

What happened then…

When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.

This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation (where the mortgage amount was greater than the value of the home). When some of these homeowners saw that there was no value left in their houses, they just stopped paying their mortgages altogether.

Banks eventually foreclosed on those homes and the foreclosures drove prices down even further and put more homes in the negative equity category. This cycle continued, leading to the worst housing crash in almost one hundred years.

What’s happening now…

READ MORE: https://www.reallynicehomes.com/blog/villages-urbana-homes-sale-2008-vs-now-are-owners-using-their-homes-atms-again/

???Thinking of selling your home? Let Fernando take over the marketing of your property with our unique 99 STEPS system
www.99SOLD.com - Call or text 240-426-5754 for more information.