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All the dust has settled,us homeowners that could barely afford a home and got screwed with inflated prices,inflated interest rates,phantom fee's and the like.
We have finally got out of that situation,how do we purchase a home now. Our credit is ruined,what little dab of money we had is gone trying in vain to hold on to a bad investement,,that we were talked into by the way by slick talking mortgage brokers,real estate sales people,and appraisers,saying "Take this riduclous loan, for this artifically inflated price and in two years refinance,and get a good loan.
What do we do now? At 51 years old,savings gone,401k almost emptied,but thank god still healthy enough to work,what do we do now to buy a home? I ma not talking about a second home on the lake,or an investment rental,but a primary residence.
All of you investors and great financial minds that created this mess,share with us something positive this time, park the BMW put the Starbucks down for a minute and share.
I understand your frustration but why buy another home so soon after taking a hit like this? Why not rent for a while, save up and rebuild your credit?
Buy a cheap wooded lot and build your own home from the trees with your own two hands. If you can't afford something, don't buy it from now on. No one forced you to buy, when you sign a contract on property it usually states that you are doing so of your own free will. You signed for something blindly trusting those making money off of you (educating yourself is an important tool against getting yourself in trouble), you knowingly wasted away your money holding onto a mistake, you lost it, your fault. Learn to budget properly and lower your expectations to your actual budget level.
If your credit is ruined and you don't have enough cash, you can't buy another home just yet. I agree with what another poster said about renting and rebuilding your credit. Try and rent something where you can save money each month for a down payment and pay off any other debts you may have incurred. As time goes on, you'll see your credit score rise. Ignore what someone has said that I think was highly mean spirited. I think we all need to take responsibility for our actions. But no one should be chastized for getting caught up in the promises that were made to have the American dream.
Also get your 401K built up again. You need that for retirement and it is more important than owning a house.
All of you investors and great financial minds that created this mess,share with us something positive this time, park the BMW put the Starbucks down for a minute and share.
My 6-Step Process:
1. Own your mistakes and learn from them(can't go on until you do)
2. Track every dime that you spend for the next 30 days
3. Review your expenses at the end of that month
4. Create a realistic budget, cut down to necessities
5. Consult with a financial planner to work out a clear agenda
6. Be disciplined and stick to your plan
This is overly simplified, but gives you a general idea of what can be done. The greatest determinant of your future success will be the attitude that you bring with you. I know you've had a rough time, but you can't control what's happened in the past. You can control your attitude now and how you approach the rest of your life. Make the most of it.
But no one should be chastized for getting caught up in the promises that were made to have the American dream.
Please don't take offense, because I'm not directing these comments at you personally...
What, exactly, is the iconic American Dream that everyone believes is promised to them? The only thing that I've been promised in this country is the opportunity to pursue my dreams. Nothing more, nothing less.
It absolutely burns me to hear people (no one in this thread) talk about how they deserve this, that and the other. They go out and buy things (almost always on credit) because they feel entitled to have them. They're "living the dream" as we like to say. Then, when life throws a curve ball that they're not prepared for, they shirk responsibility and start pointing fingers.
Sorry, but my American Dream doesn't offer much sympathy for finger-pointing. My American Dream affords me countless opportunities to go out and reach for the stars, but it also requires me to stand up and be accountable for the actions that I take while trying to grab them.
My thoughts on this whole recession/foreclosure mess.....
Go ahead and rent - it really isnt that bad . Just think - you wont have to worry about broken hot water heaters, fixing the roof etc. I SOLD my home at the beginning of the housing boom, moved far away and decided not to buy right away because I hadn't found a job and just didn't know which neighborhood I would like. 2 months turned into a year and I made the choice NOT to buy because I could see what was happening with the market. We lucked out - I rented a cute little rambler with a big yard for my dog. The landlord lives next door and lets me paint (within reason of course) and do whatever I want in the yard. I feel like it is my home because I can do whatever I want within reason, but I dont have the maintenance issues.
There are SOOOO many houses to rent right now because the sellers cannot get rid of their homes, so they are renting until the market changes. This is a BONUS for you. You may find a great house and be able to work some financing magic in a few years and never move again . Or, pack up and move on.
I honestly think we have to wait this out. There are so many people in your situation right now, that once this 'recession' is over - 2 years, 4 years whatever - lenders will have a whole new set of rules to deal with past foreclosures. I truly think that once the economy changes and is headed back in the right direction, the lenders will feel better and will be giving away loans (well, not really but you know what I mean)! It will take time - for now just take baby steps, set up housekeeping in a new place and wait things out. You WILL own a home again!!!!
Please don't take offense, because I'm not directing these comments at you personally...
What, exactly, is the iconic American Dream that everyone believes is promised to them? The only thing that I've been promised in this country is the opportunity to pursue my dreams. Nothing more, nothing less.
It absolutely burns me to hear people (no one in this thread) talk about how they deserve this, that and the other. They go out and buy things (almost always on credit) because they feel entitled to have them. They're "living the dream" as we like to say. Then, when life throws a curve ball that they're not prepared for, they shirk responsibility and start pointing fingers.
Sorry, but my American Dream doesn't offer much sympathy for finger-pointing. My American Dream affords me countless opportunities to go out and reach for the stars, but it also requires me to stand up and be accountable for the actions that I take while trying to grab them.
This is precisely how I feel about the "american dream". I'm so sick of people talking about how they HAVE to have this or that, they DESERVE to have it. Too FREAK'N bad if you can't. You don't DESERVE squat! You need to work hard, you need to save, you need to live within your means, you get what you give. I'm not at all addressing the OP with these statements either.
I feel for the OP but i'm sorry you did have a hand in your situation as well. Be grateful you have your health and you are capable of working. learn from your mistake and go forward. so you can't buy a home, big deal. You can rent a place to live.
At 51 I would just rent. With a 30 year loan you will be in your late 70's early 80's and still with a mortgage. If you have little money to put down, the payments may not be what you are willing or able to carry for that long. How long are you planning on working and will you have a retirement income fat enough for a house payment? Feel badly for you, but renting is not the end of the world.
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. Just think - you wont have to worry about broken hot water heaters, fixing the roof etc. I SOLD my home at the beginning of the housing boom, moved far away and decided not to buy right away because I hadn't found a job and just didn't know which neighborhood I would like. 2 months turned into a year and I made the choice NOT to buy because I could see what was happening with the market. We lucked out - I rented a cute little rambler with a big yard for my dog. The landlord lives next door and lets me paint (within reason of course) and do whatever I want in the yard. I feel like it is my home because I can do whatever I want within reason, but I dont have the maintenance issues.
