posted on May, 17 2011 @ 06:57 PM
Originally posted by eagleeye2
I cant help to recommend watching Micheal Moores film Capitalism: a love story. You see actual footage of foreclosure right at the beginning.
Honestly, even if you dont like the guy, his films have won numerous international awards and is directly related to this topic imho.
The guy at the beginning of Michael Moore's Capitalism did it to himself. He refinanced a family farm that had been fully paid off for generations,
then the rates changed and he couldn't keep up with the loan payments.
He saw a way to get some fast cash, and didn't read the fine print. Many homeowners in the USA and around the world are making the mistake of
refinancing their homes equity as the value of their homes increases, while thinking that the value will always continue to go up. Then when the
values fall or the interest rates change, they get caught with their pants down.
Part of this is due to greedy banks, but a large part of it is due to people thinking that if the value of their home goes up, it must be okay to
refinance at the higher value.
It's NOT okay unless you actually sell the home for the higher amount and have the money in your pocket, at which time it becomes unnecessary.
Equity is false value until the home is sold.