With the current economy families across the country are making the tough choice of continuing to make payments on their homes or save what little they have left to start over. This should be your last option, due to the fact you will hurt your credit and face foreclosure. So the burning question when faced with this dilemma is “Should I stay or should I go" or should I refi my home?
The facts are that many people took cash out, borrowed more than they can afford, took teaser rates, or applied using some form of a stated income loan which would often over inflate the borrowers actual income through the home refinance or home purchase process. Almost every market has seen a decline in value and on top of that we have creditors decreasing the amount of money the lend; so most homes can't be refinanced or sold. Thousands are opting to just walk away from the home leaving it to the bank. Is this the right move?
I don’t have the right or wrong answer here but I do know that up until the 90’s most people bought a house as a place to live and somewhere to stay and raise a family.It might be a conservative hard line, but we all need to face the facts.With national home values increasing faster than expected in the 1990's to 7% a year; it started a trend. Lending practices began to recover from the S/L crisis and a new way of thinking was born in the lending world. Your not buried yet?Are you aware of what your actual FICO mid score is? Well then you obviously are able to get a house.By then home prices were lower and stated incomes supported those prices; with that in mind it could have been okay for stated incomes.But the exposure is there as national values increased at an unprecedented rate, and people use that equity to buy expensive toys. Surprise...if you leave a pile of money in front of people most will take it, and then buy high priced items to show off to their friends.
Fast forward about 10 years to 2008 we are all faced with the dilemma should I stay or should I go.If I leave the home I might be able to buy it back and home values should be lower by then. This is all true you can walk, you could buy your home for less, but do you really want to?Everyone was aware of the loans they were getting into, we don't need a news story to tell us that a pizza boy can't afford a Beverly Hills mansion. Again You knew what you were doing when you took the cash out home refinance, you knew what you were doing when you bought the home, don’t bring everybody else down even further as somewhere along the line we must just stop this madness. Everyone always talks about being a leader and I wish that someone reading this article would become the leader and take a stand in their community, Stand like custard did at the battle of big horn, take a stand to save your house and do what is right; or we face the possibility of falling into a depression and don’t think for one minute that the thought is impossible.
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