A recent report in the Fresno Bee says 51% of Fresno homeowners who lost their homes through foreclosure had taken out equity loans or refinanced and taken money out- sometimes multiple times.

The findings are pretty telling. The Fresno Association of Realtors President Don Scorodino said that many families used their house as ATM.  The average family refinanced or took cash out TWICE before losing their house.

This practice isn’t restricted to Fresno.  Across the country and even here in Marin, people are losing their homes because they pulled too much money out. 

Our homes are not meant to be ATMs.  I know many people who have financed cars, boats, vacations, college tuition, private high school tuition, plastic surgery, designer clothing, pricey remodels and more by pulling out money on their homes. 

Our homes are not meant to finance lifestyles we can’t afford.  Some people have lost their homes through unfortunate hardships.  That makes me sad.  What doesn’t make me sad- if you lose your home because you used it as an ATM when the market was hot and bought that new pair of boobs, that bmw 7 series, a few Bottega Veneta handbags, and a trip of lifetime that you couldn’t afford. 

In my opinion, if you can’t buy those things with cash, you shouldn’t be buying them. 

Many of the world’s wealthiest people have earned or enhanced their position with real estate.  Instead of pulling money out, keep the money there.  Stop spending, start saving.

Real estate is a great way to get rich, but you have to build equity, not blow it.

Read the whole story about the findings in Fresno here.