Everyone is aware now of the slow housing market and the fact that many folks are losing their homes. There is, however, another segment of the housing market that is seldom spoken of, but which is also being hard-hit by the current position. And the banks - who started the whole "tumble" - and who "profited greatly" in creating the "tumble" - are still profiting BIG !

First, let's chat about the householder. In the 1990's, banks developed a GOLDMINE in the housing industry...the equity loan. They commenced a large selling program to persuade folks to take their money ( savings ) out of their houses and spend it. They touted that the homeowner could "use the money for anything you would like - a holiday, home improvements, college tuition, new car, whatever". The banks then proceeded to appraise the home over the home's precise price and loan people equity up to 125% of the home's worth. This meant that folks would don't have any savings in their home - they would owe the whole value of the home at that point. Anyone that failed to take out the money and spend it, was considered stupid - to have cards or pay interest on anything more, when they'd money available in their home that they could pull out. Folk used their houses like an ATM.