While, the news media is all abuzz about the impending bottoming out of the real estate market and the record number of foreclosures, it must be remembered that markets always cycle. Whether stocks, bonds, or real estate, markets hit highs, experience corrections, bottom out and recover with varying lengths and intensities. Understanding the various nuances of the market is challenging even for the most astute experts. For those who have watched over time, there are, however, distinct patterns and regular cycles that are apparent and even predictable.
One of the predictable things we often see is the propensity of people to take advantage of those who are hurting as a result of the downturn in the current market. While we understand one’s reluctance to admit fortunes are not what they once were and it may seem embarrassing to call and ask for aid, we can assure you that if you are having trouble making your house payments, nothing will be gained by ignoring the situation.
Not too long ago, I got a call from a friend who was in trouble and had been approached by an individual who promised to purchase the house from her and help her get back on her feet. It seemed too good to be true—and it was! After selling the house and keeping my friend’s money, the buyer proceeded to default on the loan. To make a long story short, my friend has lost her house and is no better off than before she sold her home! Needless to say, unfortunately she did not contact a professional to help her
sort out what was doable and what was not. We cannot help after the fact!
Another friend called just before they were going to be in trouble. After carefully looking at her financial situation, I was able to suggest some minor changes that have made a huge difference in their financial outlook. They are able to realize savings monthly while at the same time keeping their home. Not every situation is as easy to solve as this one.
The moral of the story is, that if you, or someone you know is having difficulty making house payments for any reason, please call a trustworthy professional! Don’t rely on someone you don’t know! There are lots of unscrupulous people out there who don’t care whether you are hurt or not. Real estate fraud is rampant when the market is down and people cannot refinance their mortgages. While we may not always be able to help directly, we can suggest ways to talk with lenders and as appropriate, possibly
help get temporary relief from a lender. This doesn’t mean that you will get out of eventually paying for the loan, but it does mean that you may be able to prevent losing your house.
We do not want any of our clients or their friends or families losing their homes unnecessarily
or becoming victims of some type of fraud. We pray that your summer is one of fun and fortune!
-Kathy Fox