What Does That Mean?

You'll defend your home from fire, wind, rain and FORECLOSURE!!!

I just read an article in the Wall Street Journal that revealed a terrible stat:  Of the people who are behind in their mortgage payments only 6.6% of them will get things caught up and keep their home!  That's down from 45% in the very recent past 6 years from 2000 to 2006!

Seems some of those who are behind have either real hardships, such as job loss, or other personal tragedies; but a great many people are upside down in their home value and they would rather just walk away. 

Now I haven't done my own scientific survey, but I wonder how many of those people put any real money into the home when they purchased?  I'm guessing not very many, I could be wrong, but I don't think so.

If you put up your own money, or at least a good size chunk of it towards your home purchase, then you are more of the Home Owner than just a Home Borrower!

Value is in the eye of the beholder.  If you behold hard earned cash and put it in your home, then you see the value of holding on to your home.  If the lender is the only one putting hard earned cash in your home, then you really don't value the home, and are more easily separated from the home.  Doesn't this make sense!

I've had 3 transactions this year that ended up with first time home buyers putting 20% down on their home!  I do believe that those buyers will do everything possible to hold onto their new homes.  It's not easy to walk away from real hard earned cash, is it?  Today there are great programs available to help people get into their homes with as little as 3.5% down payment.  Over time, especially here in Billings Montana, you have a very good chance to gain equity value.  A move up buyer who reinvests that value into their next home has a much higher stake in home ownership than someone who doesn't.

That's my story, and I'm stickin to it!