Home sweet home.
They used to call it “sweat equity” when you used your personal labor to improve the condition, and thus the value, of your property.
Nowadays, with home values falling, it seems that it is more difficult to accomplish this desired result. The reality is more likely that home sellers are sweating about their loss of equity, and possibly their homes.
Recent statistics indicate that more and more homeowners are falling behind in their payments, especially if they are paying for it with an escalating arm-and-a leg interest rate.
As if that isn’t enough, the IRS has also claimed that you are liable for taxes even if you lose your home through foreclosure.
If you find yourself in this regrettable situation, take action immediately. Talk with your lender. Get responsible credit counseling. Find out what your options are from a real estate or tax attorney you trust. And check with a realtor to get an honest appraisal of the current true value of your home.
Pretending you do not have a problem rather than dealing with it is a plan for disaster. Face the situation head-on and deal with it as best you can. This too shall pass.