The foreclosure debacle is in the news again. What else can possibly happen to the disgraced mortgage industry? As if many people don’t already see financial institutions as bullies, their latest foreclosure document signing incident will definitely put lenders in the dog house in the eyes of the public. Were these institutions in such a big hurry to throw people out of their homes that they hired people just to sign a name on a line without knowing what they were signing or having a clue if any of the information was factual?
Foreclosure is a lose-lose situation no matter whether you are the lender or the homeowner. And it is becoming apparent that loan modifications are not working for most people either…that is if you can even get one. The unfortunate thing about foreclosure is most people will spend months trying to keep their head above water just too slowly lose ground. If you do not have a plan in place to handle unexpected reductions in cash flow, a missed payment can be devastating and two missed payment can signal the beginning of the end.
After having watched people try to hold on to their homes for the past few years, it has become evident that a short sale or just walking away leaves the homeowner in a more financially stable position than months of trying to hold onto your home as it slowly slips away. The unfortunate thing about being in financial trouble is we spend far too long try to fix what cannot be fixed. In many cases, it is better just to take the necessary actions required to start fresh. Whether that is bankruptcy or walking away from home that you are putting all your money into and will not end up with in the end, you will be farther ahead to cut your losses and regroup.
Bankruptcy and foreclosure are not the end of the world, especially with the economy of recent years. Do what is required to repair your credit and move forward and you will own a home again. SABUNG AYAM