Forbes.com and Yahoo have come out with a ranking of the 10 worst cities for homeowner debt. The top of the list is the place I call home: Sacramento, CA. The reason: falling home prices, large mortgages and a concentration of home equity loans.
Is this bad news? Not necessarily. People who are going to stay in their homes for a while are fine. Also, people who are looking to buy can still get good deals. In fact, if you are thinking about buying a home, now may be the best time.
If you are trying to sell, as long as you have equity, you can still sell. However, for those people who find themselves not able to pay the bills, they may have problems. The best solution is to talk to an attorney and find out what you can do, including negotiating with your creditors.