Debt, Not Declining Home Values, Leads to Mortgage Struggles and Foreclosures in Tennessee

 

As banks prepare to release a new flood of foreclosures onto the market this summer, already-falling home values will likely get even lower.

But while many homeowners are dismayed by the notion of losing more equity - especially if they're part of the estimated 11 million borrowers already underwater - Tennessee bankruptcy lawyers warn against getting too caught up in home values. Pre arrest investtigations and negotiations lawyer.

After all, concern with equity is what got many Americans into trouble in the first place.

During the height of the housing bubble, homeowners used rocketing real estate values as permission to take out home equity loans and lines of credit so that we could spend well beyond our means.

Houses were never meant to be investments - and certainly not get-rich-quick schemes. Our parents and grandparents bought their properties for security, a place to live, and a chance to raise a family.

Somewhere along the way, Americans have forgotten that a house is meant to be a home.

The only time values matter is when you're ready to sell. Otherwise, value - like age - is just a number.

Ninety-nine percent of the time, it isn't home equity (or a lack thereof) that interferes with a family's ability to pay the mortgage - it's debt.

Most Americans have spent the last five years so focused on economic numbers such as real estate values, the unemployment rate, and the stock market that we've neglected the most important numbers - those that make up our basic family budget.

When spending exceeds income, of course paying bills will become a problem.

Facing the facts isn't easy, which is why most of us would rather shift our attention to doom-and-gloom media stories. But by passively waiting for the economy to improve, we miss out on enjoying a real, lasting solution.