Mortgage crisis is never distant. It’s just around us. A lot of homebuyers are concerning what they can do to avoid such crisis happening as well as how to deal with possible foreclosure. There are pretty much information online. Here I want to share with you some useful tips I concluded.
1. Think twice before you decide to purchase a house
Purchasing a house is a big issue not only to yourself but also your whole family. To avoid a possible price plummeting like this one, you may want to sit down with you family and discuss all the possibilities. You may want to carefully evaluate your family income and job stability, and then decide whether to purchase a house or what kind of house you would like to buy. Besides, it may be helpful to sketch a future plan of paying back loans—how much to pay each month, and how long will it take to pay back all the loans. It’s always safer to spend within your ability. And it’s never too late to decide.
2. Refinance home equity loans
If foreclosure unluckily happens, this is the first choice I would recommend. Although it would be extremely hard to apply a refinancing loan during this credit period, no doubt this is the most helpful one. According to Amazines. Com, “it is important to bolster your credit, provide excellent documentation, and be realistic about pricing and market value in terms of equity or sales prices of listed homes.”
3. Local resources and renting information
If you can’t keep your home, there are a lot people who are willing to help. Talk to local mortgage counselor and ask for their advice. Those counselors are experienced in these cases. The following website offers helpful information in mortgage counseling around the country: http://www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm. The website also has useful renting information (http://www.hud.gov/renting/local.cfm).
4. Remember, it’s not end of the world even your home has to be taken away.
I understand it’s a tough experience to be evicted from the house. I can feel the pain when one did nothing wrong but had to face the foreclosure. But please don’t give up life that easily. It’s a good idea to talk to friends and family members, or talk to people who share the same experience. Love can never be taken away, and it’s way more precious than a house. Stand up and fight the bad situation. Tomorrow is a brand new day.
What’s your reason for wake up in the morning?
7 years ago
5 comments:
I agree that there are always options for people to make the best of their financial situation. I remember when we were buying our house, we were told that we could get a mortgage for almost three times as much as we did; had we done so we would have paid our entire paychecks to the mortgage. I think those days are over now. But I wonder what are the options for renting. Is now a good time to rent? I wonder what the financial difference is between owning and renting for a lifetime?
Your post is very helpful, and what I get from it is make smart decisions. People making risky long term decisions are what got us into this situation. We need to educate people that taking advantage of a system will eventually make the system bite you back.
I think that these are good tips for people. I'm not looking into a house yet, but I do know that these are things to look into to for when that time comes.
Thank you for your comment, Dr. Frost. If people's houses are have to be taken away, and there're no choice other than renting house, they have to do so. But I believe renting is a temporary behavior. People want their own houses. Renting is the last thing they want to do. If hopefully, people can get through this period, and have restored their finance, they may start over and purchase a house.
Thank you volt-air and carter wright.I totally agree that in the mortgage crisis, people's risky decisions partially caused this. Decision making is crucial. Hasty ones always cause trouble.
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