5 Things Better Than A Home You Can’t Afford

The constant strain of debt is no gift to your life.

5 Things Far More Promising for Distressed Homeowners 1. Being honest with your self The best thing you can do for yourself is to admit that there is an issue. Numerous property owners decide to disregard it or sweep it under the mat for some time, but seldom does that ever work out. You know your budgetary circumstance better than anybody, so on the off chance that you can see you're going to experience difficulty making headway, simply acknowledge it. 2. Selling the Property Depending on the market where you live, you might be able to sell your home and pay the mortgage in full. That is the best alternative for someone with this particular financial strain, but on the other hand it’s generally a hard pill for most to swallow. Some mortgage holders confronting abandonment would rather accept temporary deals. 3. Lease the Property In the event that selling your home is not feasible, another alternative is to lease the property and then move into a less expensive home that you can afford. Just be aware that being a landlord can be costly; so tread lightly when considering this option. When you’re renting your home, remember that you’re still responsible for any major repairs and maintenance that comes with it. If the tenant moves out at the end of his or her lease, and you aren’t able to find another tenant right away, you will be stuck with two house payments. It is extremely important to weigh the pros and cons before making your final decision on whether renting the property makes financial sense for you. Also keep in mind, for this to work you will certainly need cash reserves. 4. Short Sale the Property If you can’t afford the cost of your present home loan and need to sell your home or property as quickly as possible to avoid foreclosure, an alternative is to short sale. A short sale takes place when the bank gives you consent to offer your home or property for less than what you owe. It's a better way out than to owe a significantly huge sum more than what your house is worth.

As with most options related to mortgage relief, you need to demonstrate that there is monetary hardship to qualify and be approved. Since the bank doesn’t entirely “forget” your part of the obligation, a short sale will cause some harm to your FICO assessment. While this may not be a major immediate concern now, a decent FICO score influences your purchasing choices over the long haul. After a short sale, you ordinarily have a holding up time of two years prior to you are qualified to purchase another property. 5. Investing in your personal growth While it may be hard to envision your second chance at this, homeowners struggling to pay mortgage have little place to go but up. Your will to succeed in your goals is necessary to move forward but once you tackle this hurdle you can easily find yourself becoming more financially responsible handling all the critical matters related to paying off your mortgage and saving your home. Using that energy to then educate yourself in financial health will take you well into life after the stress of not being able to afford your home. Some homeowners take on new employment, continuing education or simply spending time with family after successfully getting through this time. If you are finding it increasingly difficult to pay your mortgage, there are several options available to you to make the best of a potentially damaging situation. Take advantage of FAIR Counselor’s personal services for homeowners by scheduling an initial consultation.