Flipping Rich

After having received my 3rd phone call in the last couple months from a party that wants to sell their house, but is upside down, I figured this might be something to talk about.

I admit over the years I have had similar conversations, however it is becoming more common.

It goes a little something like this.

We bought our house for $100,000, 8 years ago.  We refinanced 2 years ago. Our principal balance is $220,000.  You are telling me my house is worth $200,000? I am losing money!

Check it out folks, the person above has not lost any money. They have just pre spent it.

If you can double your money on your primary residence in a relatively short amount of time you should be thankful.  Unfortunately what I call the above example something along the lines of bad planning.  The party took out all the equity in their home, bought a car, went to France, or otherwise spent a lot of money.

With the mortgage demise and people taking bad loans the stories get worse.  Best thing you can do is talk to someone you trust PRIOR to pulling equity.