When your home’s value rises, you have more equity, which is a good thing. When it sinks, you have less equity—and it might be an indication that the housing market and the economy in general is headed for choppy waters, which is a bad thing. Both of those scenarios assume that home values will change steadily over time—but what happens if your home’s value drops or rises sharply and suddenly? Right now property values are pretty high, and have been rising steadily for years. But as anyone who was alive in 2008 can tell you, home prices can plummet overnight. If your home’s value goes up or down very rapidly, there are a few steps you should take to protect your investment and your property.
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