Another Great Reason to Stay Current on Your Mortgage as Long as You Can
Very few things are more heart breaking than having a client come in who has spent tens of thousands of dollars of their savings and sometimes hundreds of thousands in retirement funds over the past several years to cover mortgage payments while unemployed or underemployed. Often it is reaching the end of their rope that finally leads them to come in and see us. The result for these types of hard working homeowners is almost always better when they take proactive and informed steps early to resolve their housing debacle rather than waiting until the situation is a mature disaster.
When a homeowner comes to see us while they still have some assets or the ability to stay current on their mortgage, it helps to preserve their credit and give them options to purchase a new home with a lower payment. Once the mortgage payment goes 90 days late, only bad things can happen, including foreclosure. GONE ARE THE DAYS WHEN LENDERS WOULD NOT RENDER ANY HELP BY WAY OF LOAN MODIFICATION OR SHORT SALE APPROVAL FOR BORROWERS WHO ARE CURRENT ON THEIR MORTGAGES!!!!
Maintaining your credit and your options to buy a downsized replacement home is incredibly important. Now it appears that this option may be CHEAPER than the option or renting!!!
“The United States added 4.8 million renters in the past six years while losing 1.7 million owner households as the dynamics of the real estate space changed in the wake of the 2008 financial meltdown, according to the Mortgage Bankers Association.”
Keep your options open! You may save money vis-a-vis renting , keep tax deductions, increase your housing choices, and c0ntinue to enjoy the American Dream of home ownership with a little advanced planning. Even if you decide to live in an RV, you are going to need your credit to get one! Likewise, the best rates on auto insurance, homeowners insurance, and so many other commodities.