5 ms·
Federal reserve including all assets and subtracting all debts. If you owe 300k on your house that's worth 400k, you might have a liquidity problem but you are
by ikeboy 7y ago
Federal reserve including all assets and subtracting all debts.
If you owe 300k on your house that's worth 400k, you might have a liquidity problem but you aren't poor.
- dmoy 7y agoTrue but you might have a hard time covering an emergency $1k expense. There's also a colloquial phrase for it - house poor.
- mattkrause 7y ago"Liquidating" a house is slow and relatively expensive. You're probably losing a decent chunk of that $100k if done in a rush (and of course, you need somewhere else to live too). Another chunk of that $100k is probably tied up in a car, which has the same problems.
- ikeboy 7y agoSure, but credit is cheap and easy. You can get a HELOC easily.