“My significant other has two sisters, each of whose family has taken out HELOCs on an annual basis (“to get us back to even”) the last three years. Their mortgages are coming up for renewal later this year and I’m curious as to the how much they owe relative to perceived equity. The one sister talks about “moving up” in a couple of years (“Janie and Andrew [their children] will need their own bedrooms soon”), but all I can think about is how she has no idea what is going to hit them. If my hunch is correct, they’ll barely be able to remortgage their current place let alone have the means to move up. I’ve decided to keep my mouth shut when I’m in their presence, however.”
- oneangryslav2 at VCI 22 May 1:36pm
“Two close friends of mine got 50k HELOCs each within the last year. They are at their max right now.
They don’t consider a HELOC a loan but consider it as already “earned” cash that was trapped in the house. And no they are not uneducated hillbillies. One works as senior analyst for the government..i just roll my eyes and pray that god will have mercy.”
- bum at VCI 22 May 2012 12:07pm and 1:59pm
Only a small percentage of overextended home owners need to get into trouble to put considerable downward pressure on prices.