Notes From A Backseat Driver...Don't Giveup Your Home
Notes From A Backseat Driver...Don't Giveup Your Home
http://articles.moneycentral.msn.com/Banking/HomeFinancing/nearly-1-in-6-homeowners-underwater.aspx
In the above link, The New York Times title is "Nearly 1 in 6 homeowners 'under water'". That is a lot of people whose homes are in some sort of jeopardy.
It seems like most people are standing still frought with worry about the home mortgage mess waiting for their notices of foreclosure and orders to vacate.
If you know that foreclosure is inevitable, you should move quickly to protect yourself so that you have shelter, utilities, and can move your belongings. You should prepare so you have a good new start.
But even if there is a chance to stay where you are then you have to motivate yourself.
I think the first thing would be to renegotiate your motgage. Go to your lender and have an honest conversation with them. The objective might be to lower the rate of interest you are being charged. You might want to find out what the payments would be for a fixed mortgage instead of a variable one. If you can show you would have no problem paying 7% rather than 11% you might win them over. Go to other banks to possibly get comparison rates from them.
Some people are losing income if they have a small business, lost their jobs, or even had their hours cut.
A nice family was interviewed on CNN and the wife and mother had a cleaning business where she lost customers due to economic times and I think they said her husband lost overtime on his truck driver job and they had a truck used in the cleaning business reposessed. Maybe she should spend all of her new time trying to obtain new customers. Maybe she should try to bring the business to another level by providing additional services. Maybe she should go to the library and use the Internet to research cleaning businesses for new ideas. Maybe she should visit each member in her local Chamber of Commerce not only for direct work but advice and referrals. Maybe both of them and their daughter should additionally obtain part time jobs.
Some families are adding relatives and sometimes strangers to move into their homes to contribute to the household. Drive around your neighborhood and count the cars that are in the driveway or in front of your neighbor's home. If their child is not commuting to college, they probably have some sort of rental agreement with the additional adults living there. Some families have several generations living in the same household. If there are children, then maybe the grandparents can provide childcare while the existing childcare provider works outside the home. Everyday, I see seniors pushing carriages and strollers and sometimes dogs in front of my home and around the neighborhood.
Rent out your garage if possible. Many people want to keep their vehicles stored in a garage but do not have a garage. Sometime a garage can be used for storage. Sometimes a garage is suitable as a small business location for a wholesaler, bicycle or auto repair, or even a hobbyist.
Start a new part time business. Begin with your hobbies that you may be able to make money from.
Take a local real estate sales course just to learn what the professionals know. Most courses are taught by a real estate broker with many years of experience selling homes. You not only learn about real estate, but gain insight on the current market and what others are doing.
Go back to school at least part time not only to qualify for a better paying job, but to help keep the one you have today. Most public programs are cheaper then commercial programs. Your employer may offer tuition reimbursement. Frequently, if you qualify, you may be able to attend for free or at a reduced rate. My local county college has free programs for seniors, unemployed and National Guard.
Do not just give up your home. There must be at least one thing to do to improve the situation. Hopefully there are many things to do.
http://articles.moneycentral.msn.com/Banking/HomeFinancing/nearly-1-in-6-homeowners-underwater.aspx
In the above link, The New York Times title is "Nearly 1 in 6 homeowners 'under water'". That is a lot of people whose homes are in some sort of jeopardy.
It seems like most people are standing still frought with worry about the home mortgage mess waiting for their notices of foreclosure and orders to vacate.
If you know that foreclosure is inevitable, you should move quickly to protect yourself so that you have shelter, utilities, and can move your belongings. You should prepare so you have a good new start.
But even if there is a chance to stay where you are then you have to motivate yourself.
I think the first thing would be to renegotiate your motgage. Go to your lender and have an honest conversation with them. The objective might be to lower the rate of interest you are being charged. You might want to find out what the payments would be for a fixed mortgage instead of a variable one. If you can show you would have no problem paying 7% rather than 11% you might win them over. Go to other banks to possibly get comparison rates from them.
Some people are losing income if they have a small business, lost their jobs, or even had their hours cut.
A nice family was interviewed on CNN and the wife and mother had a cleaning business where she lost customers due to economic times and I think they said her husband lost overtime on his truck driver job and they had a truck used in the cleaning business reposessed. Maybe she should spend all of her new time trying to obtain new customers. Maybe she should try to bring the business to another level by providing additional services. Maybe she should go to the library and use the Internet to research cleaning businesses for new ideas. Maybe she should visit each member in her local Chamber of Commerce not only for direct work but advice and referrals. Maybe both of them and their daughter should additionally obtain part time jobs.
Some families are adding relatives and sometimes strangers to move into their homes to contribute to the household. Drive around your neighborhood and count the cars that are in the driveway or in front of your neighbor's home. If their child is not commuting to college, they probably have some sort of rental agreement with the additional adults living there. Some families have several generations living in the same household. If there are children, then maybe the grandparents can provide childcare while the existing childcare provider works outside the home. Everyday, I see seniors pushing carriages and strollers and sometimes dogs in front of my home and around the neighborhood.
Rent out your garage if possible. Many people want to keep their vehicles stored in a garage but do not have a garage. Sometime a garage can be used for storage. Sometimes a garage is suitable as a small business location for a wholesaler, bicycle or auto repair, or even a hobbyist.
Start a new part time business. Begin with your hobbies that you may be able to make money from.
Take a local real estate sales course just to learn what the professionals know. Most courses are taught by a real estate broker with many years of experience selling homes. You not only learn about real estate, but gain insight on the current market and what others are doing.
Go back to school at least part time not only to qualify for a better paying job, but to help keep the one you have today. Most public programs are cheaper then commercial programs. Your employer may offer tuition reimbursement. Frequently, if you qualify, you may be able to attend for free or at a reduced rate. My local county college has free programs for seniors, unemployed and National Guard.
Do not just give up your home. There must be at least one thing to do to improve the situation. Hopefully there are many things to do.
posted by God Bless America - Bob at 11:32 AM
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