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Top Ways to Lose Your Home

By
Real Estate Agent with Jane Campbell, Keller Williams Realty

Few homes buyers stop to think they could lose their home. But mistakes happen and many are made when the home was purchased. 

Here are fool proof ways without meaning to, set yourself up to fail at home ownership.

1. Attending no money down seminars

Armed with trade secrets from the 3 hour sales pitch from books, tapes and CDs go forth and make dozens of low ball offer that get rejected until you find a seller who will carry all the financing at 18% interest with a 3 year balloon payment.

2. Wiping out savings

Put every dollar you can scrape together into a down payment for your home. If your short on funds, tell yourself you will make it up out of next week paycheck or make a cash withdraw on a major credit card to make up any difference

3. Refusing Professional Advice

Whatever you do, do not under any circumstances ask a realtor, mortgage consultant, lawyer or accountant for advice. What you do not know, you can ask Uncle Joe to explain since he owns a home and you do not.

4. Choose Exotic Financing

You know there is no reason to be concerned with terms such as indexes, margins, caps or negative amortization. Because you have a low interest rate and low monthly payment you feel confident that whatever happens later you can handle.

5. Passing up a home inspection

Everyone knows that home inspections are a waste of money and time. If a home has 4 walls, a roof and somebody is willing to occupy it, you can fix any minor problems that surface later.

Yes, follow one or all of these steps and you have the ability to lose your home!

 

Comments(2)

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Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

We have been lacking on informative blogs for consumers on how to not lose your home in the first place, the majority are about short sales and loan modifications. Great info.

Sep 23, 2009 07:15 AM
Charles Bradford
Northbridge Equity, LLC - Indianapolis, IN

Jane -- Thank you for your candor.  Indeed, buyers, sellers and novice investors get bombarded with "quick, easy" ways to get into real estate.  People who were lured by option ARMs, stated income loans, and currently reverse mortgages are in trouble or headed for the rocks.  I have several clients that are kicking themselves because they were so short sighted.   I believe the "get rich quick/no money down" seminars and the crazy mortgages that were out there (and, some still are) is one of the primary reasons large banks are failing.  As professionals, it is our fiduciary responsibility to keep our clients out of the danger zone.

Sep 24, 2009 03:01 AM