The Lingering Effects of the Foreclosure Crises and Lack of Self Discipline
I am not a real estate or financing expert – I am an average thirty-something year old trying to make my way through the debris left in the wake of the most recent foreclosure crises, and an economy that was at best in a deep recession and at worst on the cusp of a depression. Exacerbating the overall environment were banks giving non-prudent loans for more than the houses securing the loans were worth, and then being professionally cute and laying off their liability with swap instruments betting that mortgages would not be paid. While I’m sure that many were trying to do right by their borrowers, I almost believe that some of those bank and mortgage lender employees …show more content…
They not only lost any monetary and sweat equity they may have had in their homes many of them had to declare bankruptcy; some of them had no place to go and became temporarily homeless. With their credit records in shambles, they often lost their jobs (or even worse their security clearances) and could not even rent an apartment except for what would pass as substandard or slum-like apartments. For the past few years I worked with many individuals at a major retailerthat had undergraduate and even graduate degrees; all of them underemployed but all were willing to do anything so that they would not have to go on welfare. Some were living alone and some with their families so that they could rest and repair their credit records and save a few dollars to move back into their own home.
Some of the possibilities that we discussed so that they could get back into their home was rent-to-own, or having a relative buy the home and they would make the payments until they could refinance in their name. Of course the danger in the latter is that by the time that their credit, work and rental history would be acceptable to a lender the interest rates would not be at the lows that the mortgage market currently …show more content…
It provides that opportunity for the buyer to work toward owning that home again, while allowing the seller to enjoy the benefits of rental property and the related business expenses. It keeps properties from deteriorating when there is no pride of ownership or ownership to come, and it also provides an opportunity to negotiate with the seller on a potential take-back-mortgage rate that is more acceptable then what the current mortgage rate is at the time the rent-to-own is converted to “I OWN
I am not a real estate or financing expert – I am an average thirty-something year old trying to make my way through the debris left in the wake of the most recent foreclosure crises, and an economy that was at best in a deep recession and at worst on the cusp of a depression. Exacerbating the overall environment were banks giving non-prudent loans for more than the houses securing the loans were worth, and then being professionally cute and laying off their liability with swap instruments betting that mortgages would not be paid. While I’m sure that many were trying to do right by their borrowers, I almost believe that some of those bank and mortgage lender employees …show more content…
They not only lost any monetary and sweat equity they may have had in their homes many of them had to declare bankruptcy; some of them had no place to go and became temporarily homeless. With their credit records in shambles, they often lost their jobs (or even worse their security clearances) and could not even rent an apartment except for what would pass as substandard or slum-like apartments. For the past few years I worked with many individuals at a major retailerthat had undergraduate and even graduate degrees; all of them underemployed but all were willing to do anything so that they would not have to go on welfare. Some were living alone and some with their families so that they could rest and repair their credit records and save a few dollars to move back into their own home.
Some of the possibilities that we discussed so that they could get back into their home was rent-to-own, or having a relative buy the home and they would make the payments until they could refinance in their name. Of course the danger in the latter is that by the time that their credit, work and rental history would be acceptable to a lender the interest rates would not be at the lows that the mortgage market currently …show more content…
It provides that opportunity for the buyer to work toward owning that home again, while allowing the seller to enjoy the benefits of rental property and the related business expenses. It keeps properties from deteriorating when there is no pride of ownership or ownership to come, and it also provides an opportunity to negotiate with the seller on a potential take-back-mortgage rate that is more acceptable then what the current mortgage rate is at the time the rent-to-own is converted to “I OWN