Savings, Foreclosure and Motivated Sellers
We have two prospective homeowners right now - in Michigan - in foreclosure - with a crazy fact. Household income is $100,000 - they dont even have $500 saved. Last year I was offered a house in West Bloomfield - $650,000 colonial, household income was around $30,000 per month- for the last 5 years or so. They had two bad months - the house went immediately into foreclosure. Not even $10,000 under the mattress.
Two years ago, we sat in a house warming party - homeowner proudly informed us that he was fearless - he had just bought this $700,000 house - 100% mortgage - with $700 in the bank account. That was his NET.
Kiyosaki has suggested that to calculate net worth - dont use the equity in the house you live. Then do the numbers. It is scary all of a sudden.
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Comments
Mark,
Please know that I appreciate your committment to educating the interested and motivated on real estate investing. The article above is scary. However, I know real world reality!
Posted by: Beverly | February 1, 2006 11:00 PM
The savings rate in America has hit a negative number for the first time since the great depression. Currently Americanst are spending 0.5% more than they make. As rates more up the short sale market is going to take off fast.
-Randy
www.4mysales.com
Posted by: Randall Wilson | February 3, 2006 02:14 AM