Sunday, February 15, 2009

OPTIONS FOR HOMEOWNERS FACING FORECLOSURE

I thought it would be helpful to share the many options distressed couples have when facing foreclosure. I have had a few months to ponder the different options that lay ahead in the months to follow. I hope this list is helpful for somebody who may just be faced with the fear of foreclosure. One thing to keep in mind is that foreclosure is like a grieving process, you are losing something, however rest assured in the hope and comfort in your heavenly father that this to shall pass. So on with the list of housing options ...........

1. Rent to own. This could be done by working out an option to pay rent and then eventually own the home. The positive with this method is that you are not throwing your money out the window each month.

2. Land Contract. This method gives you the opportunity to "purchase" a home with a down payment and you make payments to the owner. You will not be able to get a mortgage after your foreclosure, so this is a popular option.

3.Stay with family or friends until you are back on your feet. This is obviously a blessing if you can work out the details, this method would give you more time to save for a future home.

4. Rent. You could find a smaller, more affordable temporary home while you save. Some would argue that rent is a waste of money, but I guess it depends on the price. One advantage is the fact that you call the landlord when repairs need to be paid for. You also pay no property taxes, that could be a huge benefit.

5. Ask family/friends for a loan. If this is possible count your blessings.

NOTE: Dave Ramsey cautions land contract and rent to own. I have researched this topic and basically the risk is that if the homeowner forecloses on the home and you do not know about this, depending on the timing of the foreclosure you may have no rights and be evicted.

These are all options to consider because everybody has a unique situation. One thing everybody should be doing while facing foreclosure is saving up some cash. You will not feel so powerless and helpless. Research and have a plan, I think that is the best advice I could give. The worst thing to do would be nothing at all.

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