“My sister in law, a hair stylist with a small income, just sold her home in order to buy a larger one. She is oblivious to what will happen if prices drop. If her $450,000 home becomes a $350,000 home she will have no choice but to walk away with nothing.”

“My sister in law just sold her home in order to buy a larger one. She has a small income as a hair stylist but has seen her property value rise so she views buying a large home as an opportunity she just can’t say no to. She is oblivious to what will happen if prices drop. She had absolutely no idea that in her position the bank will come knocking for every dollar of lost value. If her $450,000 home becomes a $350,000 home she will have no choice but to walk away with nothing.”
j.bean commenting at CBC News 18 April 2012 11:34am

6 responses to ““My sister in law, a hair stylist with a small income, just sold her home in order to buy a larger one. She is oblivious to what will happen if prices drop. If her $450,000 home becomes a $350,000 home she will have no choice but to walk away with nothing.”

  1. Ralph Cramdown

    Or she could keep paying the monthly nut, bitterly.

  2. A hairstylist in a $450k home. Good thing there’s no subprime lending among Canada’s “prudent” banking sector. 🙂

  3. the miracle of the property ladder. It allows meagre peasants the opportunities that property ladder non-participants marvel at.
    “and the meek shall inherit the earth”

    • Meek does not mean newly leveraged bling, it means demure and humble. Double strike on the pompadour.

  4. 4SlicesofCheese

    Property snakes and ladders 🙂

  5. “Property Ladder”….? I think that show got cancelled on A&E…..

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