Wealth-Coaching

In today’s debt elimination blog, I will discuss the terrible prospects of negative equity. With the sub-prime market in the tank, the value of housing, particularly along the east and west coasts, have suffered tremendous losses. When the housing market was booming, you could turn to any channel and see commercials for taking a loan out on the equity of your house to make improvements, pay of debt or even use it to make investments in other properties. In addition to this, you probably receive countless fliers and phone calls from banks willing to let go of their money.

While this may have been a way out of debt during the real estate boom, it is no longer the safest option out there. Many families have overextended themselves and now owe more money that what their house is valued at. There are groups that are pressuring the powers that be in Congress and on Wall Street to re-write these loans in order to avoid a further decline in the sub prime market, but as it stands, home owners are forced with the prospect of holding on to their home for the next several years. Before you consider taking out equity in your home, you should seriously consider where the market is heading.