Hi kids. It’s time to make up a headline story again here at Cheaplander.

How I usually do that nowadays is go to CNN and just pick the first article on the page every morning. They never fail to deliver, what with the Eeekconomy in the tank. This works supremely well and is really easy to do. It’s even easier than throwing a smelly shoe at a soon to be ex-president.

For instance, here’s a great title: “U.S. homes lose $2 trillion in value in 2008.” Wow. I just threw up a little in my mouth.

Note, these numbers are according to Zillow a website for real estate values which I tried out soon after it launched in 2005. But I haven’t used the site since because they were always down and also had huge problems with macs and firefox…

I actually have a lot of sympathy for people with crazy ass underwater mortgages trying to stave off the dreaded foreclosure. I’m sympathetic, even though a lot of those same people were the ones who kept on trying to tell me to re-finance back in 2001 or so, with all those newfangled “Adjustable Rate Mortgages”. A lot of them called me stupid. “Home prices are never going to come down!” My own mother-in-law asked why I was so stubborn about refinancing to a better rate.

No, I don’t gloat. Because for a lot of other folks, they had no idea what they were getting into. But still, I’m not sure what I can say or what advice to give for someone who’s in trouble like that. I think I’d say, head on over to a place like HUD and read up.

For the rest of the folks, who have non-insane mortgages and aren’t in that much trouble - what kind of actions should you take on this type of sensationalist news?

Absolutely nothing.

Keep paying your mortgage the normal way. Don’t F around with anyone trying to get you to refinance with some crazy new rate structure. As long as you can keep doing it, just pay it normally. In fact, if you can, try and pay a little earlier - I always try to keep at least a month’s buffer in the payments, just in case.

I know news stations have to make a buck - but they’ve certainly been fanning the flames lately with headlines like this.

[Editor’s Note: I don’t mean to make light of the current homes situation, especially for those swimming around underwater with an upside-down mortgage. I DO mean to make light of people getting shoes thrown at them.]

Source: CNN