Homeownership

Prospective Homebuyers

Owning a home is one of the most effective ways to build wealth and establish a positive net worth. If you have never been a homeowner, eliminating debt is one of the first steps to buying a home. Getting rid of credit card debt will allow you to save more for a down payment. It will also improve your credit score, thereby helping you qualify for a mortgage loan with a better rate. This can save you thousands.

If you are ready to begin saving to buy your home, you may wish to locate a nonprofit organization in your community that offers Individual Development Accounts (IDAs). These special programs provide grant incentives in the form of matched savings, as well as down payment assistance through special low interest second mortgage programs. Many IDA providers are able to combine incentives from the state, county and local city governments as well as from private sources.

Current Homeowners

Heavy credit card debt can place a heavy burden on homeowners. A home is your most important asset. When money is short, your mortgage payment is more important than unsecured credit card payments. If you have already fallen behind on your mortgage, then it is important to know the steps a lender takes to foreclose as well as your options for avoiding foreclosure.

Preventing Foreclosure

Foreclosure strips any equity you have built and it puts a damaging mark on your credit. Even though you may be free from mortgage payments, you still will have to find another place to live. Many rental homes and apartments require a credit check as part of the rental application. In short, your best option is one that will allow you to avoid foreclosure altogether.

There are no winners when the mortgage company forecloses on your property. The costs for the lender can be so substantial that many lenders would rather compromise with you on a workout agreement than foreclose on your home. Whatever you decide, protect your investment and get help from someone you trust.