The subprime mortgage meltdown is dominating US news right now. Over and over, we are hearing about how horrible this situation is. It is horrible! BUT, anyone who has been participating in the personal finance industry has known that this was going to happen for years!
I have seen case after case of horrible home mortgage situations. Do you realize how rare it is for people to have equity in their home? The vast majority of homes have been purchased with $0 down. As the market value grew, folks refused to change their spending behavior and pulled out the equity to finance more financial misbehavior.
Now that prices have declined, folks are stranded with a house where they owe more than it is worth!
The banks, investors, and homeowners are all paying the heavy price.
For folks who are debt-free and have cash on hand, it will be a good time to purchase a bargain!
Isn't it amazing how attractive debt freedom is in times of crisis?
I love debt freedom!!!!!!!!!