Mortgage and Housing in this Economic Downturn
With all the recent global economic meltdown and the undeniably hard crisis facing home owners with mortgage creating a deep hole into their pockets, one asks the question, do you sell the house or just keep paying high mortgage when you know that that house of yours has a value way below that how much you have paid for it?
In this article let me guide you and share with you some thoughts and insights on the best ways and alternatives and choices you have with regard to owning or selling your home.
First, you need to consider your general welfare and financial stability. Begin with basic questions and small projects such as putting up a good financial statement of all of your finances. While accountants or personal bankers could help you with this, may be you can do this on your own. As accounting is always a debit versus credit game, try checking up on all your bank accounts and all your savings then check on all the debt you have from all the years of spending, your credit cards, and the payments for your children's education, every thing that is big or small in amount. Try to balance the equation and come up with possible scenarios: positive to negative scenarios. Consider all the possibilities and nuances that may come along the way so as so be fully covered. Just make sure that you have everything checked. And see if they salary plus all money making routes you have are enough to cover your mortgage payments. I know this is a very demanding task, may be you could take off a weekend and focus on this one. I am sure you will get this done, weekend warrior.
While I do certainly hope that you can pay your mortgage with the current finances you have, let us also deal with the negative scenario that you are just milking away money because of having to pay high mortgage payments. Have you really seized every opportunity? Do you really need the house you live in now, may be for any reason such as your children, or sentimental reasons? Now if moving is out of the question, may be you need to go back some notches and reconsider your way of life and your spending. You can definitely cut down on most spending at home Do you really need that extra computer running 24/7? Or that super fast but high priced internet connection? Do you really need that phone line when your life is very much mobile since five years ago? Do you need to buy that plasma TV and that new Bluray set?
Maybe the most important question to ask is: What are your topmost priorities?
Now after answering these nagging questions, help yourself and act. It all begins with one single step from you, a step at a time and who knows; you are halfway there to reclaiming the good life back, a comfortable one, may be less of the earthly possessions but filled with the most important ones such as a roof above your head.
Here's a nice tip for you: It does not hurt to ask.
Why did I come to this conclusion? With the economic downturn which seems to be such a colossal, vicious cycle that just bleeds away money from everyone, a lot of companies are more than willing to cut some slack to their customers. Go call the rep of your credit card company and ask if they could lower the rates. I have friends who were granted with lower rates you would not even believe. Tell them your situation, explain it clearly, plead if you have to, or otherwise, take the other road and tell them you need to cut that card or account since you really could not pay the high rates. I am more than sure that they will do what they can and grant you your request. This housing market collapse has been partly brought about by the adjustable rates that companies extensively offered to home buyers, maybe you can ask if the company could give a fixed lower rate.
Look for other possibilities if you are really at a very deep financial hole and could not possibly pay your mortgage. What are these other possibilities? Sell the house os one. But before selling that house, make sure that you also do you homework first. Check to see if the current buying rate in your area is anywhere near the comfortable price for you. I would bet that there is a great possibility that that house is nowhere near the "good price" but do not fret for this is a choice you have to make. That mortgage payment is burning through your wallet and your whole relationship with your family. Look for a good real estate broker in your area. Put up some listings on the internet and sell your house. Look for companies and families out there looking into buying a house thinking that this is an opportune time.
Here's another neat idea: Rent out that home to other families or persons looking for a home. A lot of the families badly hit by the lay-offs of this financial crisis have sold their houses or have left them to move somewhere else. May be you also want to move someplace else, find a job there and just start anew by renting out a comfortable house for you and your company. You know, may be renting out your house would not be a very bad idea after all. If you could do commune with other people or live with an extended family. I do not have the answers to this nor do I know the best answer to whether you should sell or keep holding onto that house of yours and manage to keep on paying the mortgage dues.
Remember that a house is not a home. Home is where love abides and friendship is a guest. This just means that you can go anywhere and turn that dwelling place into a happy place that you would be glad to call a home.
Marlo Teal is a licensed real estate broker who have had an experience in the industry since the early 90s. He is an avid blogger who writes about the most important issues he is facing and what he thinks would be of great help to his community. He has been helping families either buy or sell a house and his clients have praised not just his service and professionalism but also his sincere passion in believing that a home is where love abides.
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