When home values fall, a home owner might start to think about
walking away from a home.
The scenario goes something like this: It's 2005. Dick and Jane have not saved any money for a down payment, but because market conditions are hot, and all their friends are using 100% financing, they decide to leap into home ownership. They find the perfect home to buy for $300,000. The back yard might be a sea of sand, but that's OK, they can get by without landscaping for a while.
Several years ago by. Dick and Jane still haven't put in a lawn. So, they go to the bank to get a home equity loan to help pay for the landscaping. The bank appraises their home and declines the loan because the home is now worth $200,000. Well, that's no surprise, says, Jane, after all, bank-owned signs are popping up like dandelions in their neighbor's yards.
To heck with owning a home, Dick and Jane say. Let's give the this worthless piece of crap to the bank. They figure: What's the worst that can happen? Plenty
. . . read more about Walking Away From a Home.
More Articles by Elizabeth Weintraub, click below:
©Big Stock Photo
Technorati tag: walking away from home
Full disclosure: I have been a satisfied customer of
State Farm Insurance for decades.
But my loyalty to State Farm doesn't mean it's better than any other insurance company. I stick with the company because its rates are reasonable, claims are quickly processed, and it's one-stop shopping for my homeowner's insurance, flood insurance and automobile coverage. It's also been around since 1922.
Most homeowners never think about their insurance company until it comes time to file a claim. How well a company handles a claim and the customer service it provides is a lot more important than whether you like your insurance agent or whether you could save a few dollars on premiums if you went elsewhere.
When my house fell in the ocean, State Farm was on the scene assessing damage and helping me find somewhere to move. When a freak hailstorm tore holes in my roof and siding, State Farm paid for everything to be replaced --- including a new roof -- down to buying me a new Weber barbecue because the cover had been dinged. A few months ago, when a 40-foot birch tree slammed into my home during a rainstorm, State Farm paid to have the tree removed, the roof inspected and fixed, and gave me enough money to replace my deck.
You really can't predict disaster, but you can make sure you maintain adequate insurance coverage
. . . read more about State Farm Insurance.
More Articles by Elizabeth Weintraub, click below:
©Big Stock Photo
Technorati tag: state farm
