What Happens When the Real Estate Industry Collapses
In 2009, a nice couple came to me because they felt they had been taken advantage of when they purchased their retirement home in the White Mountains in eastern Arizona. About a year after they purchased their home, they tried to refinance the mortgage. In going through this process, they quickly discovered that there were problems with the original appraisal and that the home was not worth anything close to what they originally paid for it. As such, it was impossible to refinance the loan since the real value of the home was so much less than the outstanding loan amount.