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10 Ways to Hold on to Your Home When Money is TightYou may have more solutions than you thought, some of them are very simple to get started.
Alexander Andrews
Your home is your most valuable asset... here's how to hang onto it.
“ The best way to conquer a financial problem is to recognize it as early as possible.”
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Things happen! That expression has been around for years and it’s very true. Without going into what happens to cause many people unexpected financial setbacks, my experience often points to medical bills, divorce, job loss and unfortunately, substance and gambling addictions. However, it might just be that people are living longer, everything is far more expensive, and social security just won’t cover most people’s bills.
There are ways to reduce debt and more importantly, a way to keep your home when times get tough.
First, be aware that there are many predators who might offer self-benefit propositions, but these propositions might often do more harm than good for someone seeking a long-term solution. A short term solution might be a hard money loan, with ridiculous high origination fees and interest with a 3-year due date or worse yet, a joint equity partner who requires a power of sale at a predetermined date unless his/her share is repurchased at a ridiculous amount as specified in a legally binding signed agreement.
Be careful about joint equity and hard money loans with a balloon payment.
The best way to conquer a financial problem is to recognize it as early as possible and to take affirmative action. Seek professional advice from a qualified financial advisor. There are a few suggestions.
1. Pay off and consolidate all high interest loan and credit cards.
2. Quit charging purchases on your credit card unless you can pay the bill in full within the non-interest billing period.
3. Forego the trips to Starbucks or the like and cut out going out for meals when you can.
4. If you must indulge in alcohol and gourmet meals, do so moderately at home; in other words, limit yourself to what you consume and spend.
5. Consolidate your cable and home services to the least expensive package available.
6. Reduce your utilities by using less light, heat and air. Be conscious about consumption and use your thermostat to guide you. Don’t leave lights burning and shorten your bathroom showers.
7. Shop for deals in the way of household goods, food, entertainment and clothing. Grocery store coupons are very much in vogue.
8. Avoid interest late fees and penalties.
9. Seek moonlighting gigs to augment your income like a part time job, overtime, pet sitting, childcare, jobs on the internet. Take stock of what you are qualified and able to do. Add it to your daily work routine.
10. Use your car less which will save on gas. Keep your car in good condition to avoid unnecessary costly repairs.
If you are way beyond the advantages of the above suggestions, and under water, there are some other possibilities. You can actually go up to five years without paying property taxes before potentially losing your home in a tax sale. That said, I would leave this as a last resort. Even then ask yourself how you eventually plan to pay them and consider if the penalties are worth it. At the end of the day, you might consider a reverse mortgage and it might be possible to refinance your loan. With those funds from the refinance, pay off high interest loans and credit cards.
In closing, I suggest you devise a plan as opposed to just buying yourself a year or two. If you have already explored the reverse mortgage and the refinance remedies with no success, find an agent who is an expert in this area and set up a phone or video conference. Your best solution might be to downsize by finding either a smaller home, a less expensive location or possibly a rental, which would allow you to pay off debt and have a sizable amount of equity to invest or keep for income.
There is one other solution to prolong your ability to meet financial pressures that comes to mind, but it's not for everyone. One might rent out a bedroom or bring in a paying roommate. Needless to say, such a solution might infringe on your privacy, but it does help when the financial issue is not extreme. To help you make a sound decision, seek out a professional real estate agent or a financial planner. He or she will undoubtedly come up with a plan that is custom-tailored to your immediate needs.
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Ron Wynn ranks #49 on the The Wall Street Journal’s Top 400 Real Estates Sales Professionals list. Founder of WSA/Compass, Wynn was listed among the top 10 agents for Coldwell Banker the world over consecutively for 15 years. He currently holds the #14 slot among all agents for the state of California. He has sold over 2,000 homes from Beverly Hills to Pacific Palisades and south to Mar Vista, Culver City, and Venice, providing the same personalized service whether representing an $800,000 condo or $10 million estate. He has written numerous articles for trade and business journals over the years and is often sought after to serve on panels to address real estate trends. As such, he served on a panel with “Shark Tank’s Barbara Corcoran. More than 70% of Wynn’s clients are referrals from past clients, CPA, and business managers. You can reach on Twitter, Facebook or LinkedIn. Or via e-mail at ronwynn@ronwynn.com or by phone: 310-963-9944.
There are ways to reduce debt and more importantly, a way to keep your home when times get tough.
First, be aware that there are many predators who might offer self-benefit propositions, but these propositions might often do more harm than good for someone seeking a long-term solution. A short term solution might be a hard money loan, with ridiculous high origination fees and interest with a 3-year due date or worse yet, a joint equity partner who requires a power of sale at a predetermined date unless his/her share is repurchased at a ridiculous amount as specified in a legally binding signed agreement.
Be careful about joint equity and hard money loans with a balloon payment.
The best way to conquer a financial problem is to recognize it as early as possible and to take affirmative action. Seek professional advice from a qualified financial advisor. There are a few suggestions.
1. Pay off and consolidate all high interest loan and credit cards.
2. Quit charging purchases on your credit card unless you can pay the bill in full within the non-interest billing period.
3. Forego the trips to Starbucks or the like and cut out going out for meals when you can.
4. If you must indulge in alcohol and gourmet meals, do so moderately at home; in other words, limit yourself to what you consume and spend.
5. Consolidate your cable and home services to the least expensive package available.
6. Reduce your utilities by using less light, heat and air. Be conscious about consumption and use your thermostat to guide you. Don’t leave lights burning and shorten your bathroom showers.
7. Shop for deals in the way of household goods, food, entertainment and clothing. Grocery store coupons are very much in vogue.
8. Avoid interest late fees and penalties.
9. Seek moonlighting gigs to augment your income like a part time job, overtime, pet sitting, childcare, jobs on the internet. Take stock of what you are qualified and able to do. Add it to your daily work routine.
10. Use your car less which will save on gas. Keep your car in good condition to avoid unnecessary costly repairs.
If you are way beyond the advantages of the above suggestions, and under water, there are some other possibilities. You can actually go up to five years without paying property taxes before potentially losing your home in a tax sale. That said, I would leave this as a last resort. Even then ask yourself how you eventually plan to pay them and consider if the penalties are worth it. At the end of the day, you might consider a reverse mortgage and it might be possible to refinance your loan. With those funds from the refinance, pay off high interest loans and credit cards.
In closing, I suggest you devise a plan as opposed to just buying yourself a year or two. If you have already explored the reverse mortgage and the refinance remedies with no success, find an agent who is an expert in this area and set up a phone or video conference. Your best solution might be to downsize by finding either a smaller home, a less expensive location or possibly a rental, which would allow you to pay off debt and have a sizable amount of equity to invest or keep for income.
There is one other solution to prolong your ability to meet financial pressures that comes to mind, but it's not for everyone. One might rent out a bedroom or bring in a paying roommate. Needless to say, such a solution might infringe on your privacy, but it does help when the financial issue is not extreme. To help you make a sound decision, seek out a professional real estate agent or a financial planner. He or she will undoubtedly come up with a plan that is custom-tailored to your immediate needs.
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Ron Wynn ranks #49 on the The Wall Street Journal’s Top 400 Real Estates Sales Professionals list. Founder of WSA/Compass, Wynn was listed among the top 10 agents for Coldwell Banker the world over consecutively for 15 years. He currently holds the #14 slot among all agents for the state of California. He has sold over 2,000 homes from Beverly Hills to Pacific Palisades and south to Mar Vista, Culver City, and Venice, providing the same personalized service whether representing an $800,000 condo or $10 million estate. He has written numerous articles for trade and business journals over the years and is often sought after to serve on panels to address real estate trends. As such, he served on a panel with “Shark Tank’s Barbara Corcoran. More than 70% of Wynn’s clients are referrals from past clients, CPA, and business managers. You can reach on Twitter, Facebook or LinkedIn. Or via e-mail at ronwynn@ronwynn.com or by phone: 310-963-9944.
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