Cut off time in Arizona - Home loans catch up to consumers

Hey, when there's no good jobs, no real economy, and you needed some cash, taking out that cash-out refi seemed like a great idea.

But then the equity line runs dry, appreciation stops (and depreciation starts) and what's a broke homeowner to do now?

By the way, when this phase of the bubble hit the UK, the first noticeable drop was on the "high street" - the worst retail sales performance in 23 years as consumers ran out of cash.

That Bankruptcy law that Congress passed a few weeks ago is looking more and more conspirital by the day, isn't it?


The housing boom has bailed out a lot of people in metropolitan Phoenix.

Homeowners caught between higher bill payments and flat incomes have been able to tap their rapidly rising home equity to stay afloat or even buy new cars and furniture. Others have been able to refinance using adjustable-rate loans to cut their payments.

Those with too much debt have been able to evade foreclosure and bankruptcy, and even pocket some cash, by selling their homes quickly.

But now, Phoenix's home appreciation rates are leveling off, and it's taking longer for homes to sell. At the same time, interest rates are rising on many home equity lines and adjustable-rate mortgages. Gas prices are higher. Health care is costlier. Credit-card payments are rising.