Should I Consider Foreclosure
With millions of Americans facing financial hardship and difficulty making their mortgage payments, there comes a time when a homeowner has to decide whether they should continue to make their mortgage payments and burn up their reserves or stop making the payments and conserve their cash savings. You will expose yourself to foreclosure and negatively impact your credit. So the burning question when faced with this dilemma is “Should I stay or should I go” or should I refi my home?
The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. Every lender across the country has made it more difficult to get a refinance due to lower home values and mortgages with a higher balance than what its worth. Many are choosing to simply walk away from their homes and allow the home to go into foreclosure and ultimately back to the bank. Could this be the right move?
I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.It shouldn’t take a conservative frame of mind to realize that is the way it is right now.It was a shock to some to see national home value increase seven percent a year though the nineties. Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Your still alive right?When was the last time you reviewed your credit report? Obviously you can afford a house.With that the mid 90’s saw lower home prices and stated income was normal and accepted.Now we see the exposure with home values increasing too fast and people tapping equity to purchase luxury items. Most used the money to “keep up with the Jones” purchasing big ticket item they really had no business of buying in the first place.
Fast forward about 10 years to 2008 we are all faced with the dilemma should I stay or should I go.You might be thinking that you could just walk away from the house and possibly buy it back. This is all true you can walk, you could buy your home for less, but do you really want to? You knew what you were doing when you signed on the dotted line, what has changed since then; other then heightened media coverage on the housing market failures which is feeding consumers brains and giving them the food for thought on how to walk away. Again You knew what you were doing when you took the cash out home refinance, you knew what you were doing when you bought the home, don’t bring everybody else down even further as somewhere along the line we must just stop this madness.We need to all take a lesson from our past and take charge of your responsibility to your family and neighborhoods to save our homes.
