Phoenix Real Estate: Is it Okay to Foreclose on Your Home?
It's a hot debate, and there are certainly two sides to it given today's crummy economy. It's no secret that Arizona families are struggling with pay cuts, layoffs, and flat out financial distress. But is it okay to foreclose on your home?
Side 1: Put Your Personal and Emotional Well-Being Above the Bank
The fact of the matter is this. Some people in today's economy are strategically defaulting on their homes. In other words, they have purposefully stopped paying their mortgage payments with the intention of starting the short sale or foreclosure process. The reasons behind this are many and varied. Perhaps a loss of income has occurred causing the homeowner to no longer be capable of affording his or her home. Perhaps the owner has several thousands of dollars in the bank, however, bought at the top of the market, and now finds that it will take 10+ years to recoup their loss. (Afterall, mathematically-speaking, with a few things gone right, most individuals can buy again within 3 years.) Given these circumstances, is it okay to foreclose?
Of course, it's a matter of opinion, but many mortgage brokers will you tell you that, if you can part with your high FICO score for a few years, there will still be several options available to you once the three-year mark has passed. For example, one can obtain a popular FHA loan with 3.5% down and a 640 FICO score. Some Vets are even able to buy two years after a foreclosure has passed. There are many options available that still make home ownership a possibility, after the dire situations have passed.
Stay Tuned for Tomorrow's Post:
Phoenix Real Estate: Is it Okay to Foreclose on Your Home? Part II
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