Archive for February, 2009
Homeowners along the Grand Strand are facing difficult times especially those who have mortgages and have lost income due to the slowing economy. While many workers have the safety net of unemployment benefits the self employed are not as fortunate since many who work as independent contractors may not qualify for an unemployment check. Cutting unnecessary expenses is one way to save cash for getting through the tough times but many need to take a harder look if they are unable to pay the mortgage to determine if they can afford to keep their current home.
Depleting savings to keep a home may work for some who have lost income but turning to credit cards is a dangerous path when it is only postponing the inevitable. Homeowners need to take a serious look at spending habits by putting income and expenses in writing. If monthly expenses are higher than income look for ways to cut expenses to the bare minimum. If you don’t have positive cash flow it may be time to sell your home.
A temporary loss of income is one thing but if months go by without enough income to cover mortgage payments it could lead to foreclosure. Homeowners should contact their lender at the first sign of trouble and keep the lines of communication open. Make sure to document all contacts with your lender and provide them with accurate financial information. Foreclosure is a last resort as lenders are willing to work with homeowners to keep them in the home if possible.
Loan modifications could be the answer for some homeowners and this can be achieved if you have the cash flow to support a change in your mortgage terms. Lenders may also offer other options to foreclosure in some cases. By taking a hard look at your financial situation you can take steps necessary to keep your home or determine that it is something you can no longer afford. Copyright© 2009. Sandra Bundy, Broker-in-Charge B&P, Inc.