The Bottom Isn’t Here Until You Hear the Thump & Feel the Bump

Remember the Savings and Loan debacle?

The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government—that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts[1]—which contributed to the large budget deficits of the early 1990s. – Wikipedia

Remember last year – 2007? The subprime meltdown was taking it’s toll in the mortgage industry. Over 90,000 people lost jobs related to the mortgage industry in 2007.

Have you noticed that banks are failing (IndyMac, WaMu) as are investment firms.

So the question is – who in their right mind watching these events unfold can really expect their home value to remain stable or increase?

If you need to sell, sell and move on. Make up the loss on the buy side. Believe it or not, houses are still being sold and financing is still available.

It took about 7 years to work through the catastrophe in the real estate industry due to the S&L crisis. Let’s see, if I recall, this downturn started in 2006.

Given the size of this mess and the politicalization of your suffering, who knows when things will stabilize. It seems the only thing reliable these days is the unforeseen.

Every time we think things are stabilizing, we’re broadsided with news that some other group of greedmongers has been duping the government, the SEC, the FED, the FBI. It seems your home equity has been the prime target for the Wall Street predators.

Homeowners – if you haven’t done so recently – connect with your lender or mortgage professional to verify that they are still in business. Make sure you have a solid connection, the way things are going, you may see an incredible opportunity to refinance in the not to distant future