Dealing With a Foreclosure

5 Financial Steps to Take Before Purchasing a House

Most people have dreams of buying a home. Some have to save for it; others may be lucky enough to have inherited one. But what happens when that dream becomes a nightmare? Soon the person finds themselves struggling to pay their mortgage. No matter how they figure out their bills. Soon they are losing sleep. The thing to keep in mind is that it’s not your fault. As the saying goes, bad things also happen to good people. Shalom Lamm, the real estate developer, would encourage you to push harder.

In today’s economy, it’s becoming difficult to keep our heads above water; we have to do much paddling to stay afloat. Then, of course, the worry sets in if there are children to take care of.

There are so many reasons why homes go into foreclosure. It could be medical issues that keep one from seeking employment, financial circumstances, a divorce or even a mortgage that wasn’t clear in the first place. Remember, the banks are not friends of ours. All they want is their money to be paid back, as agreed. After all, they loan it in good faith; we can’t blame them.

At some point, one should hire an attorney or try to get free assistance from a legal aid society where you live. In a consultation, they may offer suggestions about the best course of action to take, like working out a deal with the lender or taking the matter to court. The earlier one starts this process, the better for them. Prolonging it may become difficult. A lot of people are in the same predicament and it’s nothing to be ashamed of. But, it would help to find someone in the same predicament to talk to.

It takes about four months for a home to go on the market. Just keep in mind that it varies from state to state. Your attorney should be versed in the law, so he should keep his client abreast of the situation.

Suppose one is looking to buy a foreclosure home. Most banks would not look at it for 5 to 20 days, sometimes even years. These houses are sometimes sold at an auction or directly to a buyer. They can also sit for years, and it’s called Shadow Inventory(lenders will worry about discouraging resale value) if they flood the market too soon. If one is lucky enough to get a foreclosed home, it can be bought for about 30% off the initial asking price. This is because most of the home sits so long that they are in some state of neglect.

The takeaway here is to stay diligent. If life has become difficult, don’t try to fix it yourself. Instead, speak with an attorney who is versed in these matters. Then, in the long run, you may be able to sleep soundly. Here is a piece of advice from Shalom Lamm, believe in your capabilities. There are no limits to life, other than those you put on yourself”.