Slavsky Mortgage

Dreams Gone Bad. Owning a home is great but is it for you?

Remember the day you became a homeowner? Finally, you bought a house of your own. You thought why throw money away on renting? I’ll get tax break and make some money after I sell this house in a few years. Sounds about right?

What happened to those dreams of owning a place? They are gone, so far of the course, just like the economy. The prices on the properties have dropped and have not stopped there. To live in a house that is now $300.000 and pay mortgage that is $600.000 just does not make sense. The house is not yours it belongs to the bank. And what happens with all the yearly mortgage payments, insurance, maintenance and property taxes you’ve paid so far? Gone. And a dream to live in your own house is more like a joke now. So, you blame yourself for a foolish decision to own. Only it is not your fault.

It is very important to act fast. As soon as you realize that you are not able to keep up with the monthly payments, these are a few options to consider:

- contact your lender and explain your situation. The more honest you are the more cooperation you’ll get from them. The mortgage lender will work with you to set up a payment plan to help you avoid late mortgage payments, which by the way affect your credit score right away;
- if your lender is not willing to work with you or you cannot get current within 30 days – try to refinance. This may work if your credit score is still high and you really will be able to make payments – do not get yourself in the same place in a few months;
- if nothing else works, try to sell it. It is called a short sale (again you’ll need to get an ok from your lender) and it is much better than if you’d go for foreclosure, which will stay on your record for 7 to 10 years.

Since everybody’s case is different, have a real estate attorney explain all the possibilities and find better solutions for you.

A lot of lives have been ruined for the past year. We work hard and we build our credit history in order to have more opportunities, to give better life to our children. Unfortunately we cannot predict the future; we can only strive to be the best.

Again, owning your own home is great but is it for you? It is one of the biggest decisions you will make in your life – buying your own home. Just really consider all of the options, take your time and learn more about real estate, its benefits and of course its liabilities, so that when you do buy it, your home will be a place of peace and joy and not a burden.