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<p>[QUOTE=&quot;doug444, post: 1617814, member: 38849&quot;]&quot;The equity isn&#039;t lost forever, and it would be a mistake to think so...&quot;</p><p><br /></p><p>The equity <b>IS</b> lost forever, and every year we have 5% to 8% inflation (soon to be much more), you get further and further from recovery somewhere down the line.&nbsp; The illusory gains in the sales price of your home are fueled by the same inflation that caused the housing bubble in the first place.&nbsp; It is not out of the question that it will happen AGAIN.</p><p><br /></p><p>The Government, specifically HUD, Fannie Mae, and FHA, lied to you about the true cost of housing, the risk factors, the economic outlook, including the fundamental bottom-line BIG LIE that &quot;everyone&quot; should be a homeowner, as if it were a right.&nbsp; And of course, any agency or industry that promoted housing took a healthy slice off the top (follow the money), and whichever party could scream &quot;homebuyers&quot; the loudest tended to win elections.</p><p><br /></p><p>&quot;If someone could not afford to live in the house without borrowing against anticipated increases in the equity...&quot;&nbsp; Exactly backwards.&nbsp; If someone could not afford to live in the house without <u>counting on</u>...increases in the equity, then they shouldn&#039;t qualify.&nbsp; And the increases in equity, inflationary at best, led to a second scurrilous easy-money, easy-qualify racket, that of HELOC (home equity line of credit), in which the increase in value, based on the sale of comps, was immediately snatched out of the hand of a grinning bank(st)er and splurged on Volvos, televisions, cruises, riding lessons, hot tubs, and $300 shoes.</p><p><br /></p><p>Finally, the reliance on two income-earners in a traditional family practically guaranteed disaster if one spouse lost his/her job.&nbsp; There was no margin for error.&nbsp; And the big gains in home value?&nbsp; Realized only when you SELL, and oops, you have to shell that money back out to buy some other house at its inflated value.</p><p><br /></p><p>Incidentally, I was a Realtor for 10 years and I worked for FHA for 15 years -- I was part of the problem.&nbsp; The Government lied, the media lied, the credit counselors lied, all to induce some hapless bunny to buy a house (or condo), so they all could get a little up-front piece of the action.&nbsp; Don&#039;t believe me?&nbsp; Look around in 2013.</p><p><br /></p><p>Remember Ambrose Bierce and his &quot;Devil&#039;s Dictionary&quot;?&nbsp; New definition:</p><p>&gt;&gt;Condominium - an apartment you can&#039;t move out of...&nbsp; </p><p><br /></p><p>The housing bubble is not over; buy at your own risk.&nbsp; You may profit by paying off your mortgage in ever-cheaper dollars, but the replacement housing is where you&#039;ll hit a snag.</p><p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p><p>[/QUOTE]</p><p><br /></p>

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