Work Hard to Keep Your Home - March 17, 2008
We are being flooded with information about foreclosures. Most of it is negative. What we are not hearing is that over 98% of homeowners are not in any kind of foreclosure problems, but that 2% sure is making a lot of noise. That is probably because that 2% seems like a very high rate, especially in comparison to 2001-2006 when there were virtually no foreclosures.
Foreclosures have always been a part of the real estate market. Often times there are good reasons for somebody not being able to pay their mortgage. Death, divorce, and job loss are usually the culprits. Today, we are starting to see a new culprit. Some homeowners are being convinced by statistics that they should just walk away if their home’s current value is lower than their loan amount. I encourage you to think further than those statistics. There is an old real estate principle that says that one must keep their home at least five years before you can break even on the home. Many people forgot that principle during our recent boom market. In that market, five months was sufficient to break even. If you had bought your home in January 2003, the median home price in Fresno/Clovis was $154,000. Today, the median home price in Fresno/Clovis is $240,250. As you can see, that principle still holds true. Just give it some time, but most importantly, enjoy the home that you chose for your family.
There is another old real estate principle that says that buying a home gives you two things: a solid long-term investment, but also a place that you can use to live in. We shouldn’t forget that second one. That is the most important.
When I was 14 years old, my mother almost lost our family home to foreclosure. The mortgage company had already started the foreclosure process and we were scared. I have to admire what my mother did. My mother was bound and determined not to lose another home. Her family home in Italy was taken from her by the Italian Army at the beginning of World War II. She would not let that happen again. Instead, she got a second job, got a little help from a relative, and saved our home. She taught us what it is like not to give up. I still remember the day that her 30 year mortgage was finally paid off. She was ecstatic. In those 30 years, the value of the home went up almost 10 times, but the real value was the home that was provided to our family and friends for those 30 years.
If you or somebody you know is struggling with your mortgage, there are many resources for you to get advice. One of the best resources available is to contact your Realtor® to find out what all of your options are. Other resources are The National Foreclosure Hotline 888-995-HOPE or No Homeowner Left Behind at 559-234-1492. Hopefully you will choose the best option for your family’s needs and not just one based on statistics. Don’t be a statistic.
Foreclosures have always been a part of the real estate market. Often times there are good reasons for somebody not being able to pay their mortgage. Death, divorce, and job loss are usually the culprits. Today, we are starting to see a new culprit. Some homeowners are being convinced by statistics that they should just walk away if their home’s current value is lower than their loan amount. I encourage you to think further than those statistics. There is an old real estate principle that says that one must keep their home at least five years before you can break even on the home. Many people forgot that principle during our recent boom market. In that market, five months was sufficient to break even. If you had bought your home in January 2003, the median home price in Fresno/Clovis was $154,000. Today, the median home price in Fresno/Clovis is $240,250. As you can see, that principle still holds true. Just give it some time, but most importantly, enjoy the home that you chose for your family.
There is another old real estate principle that says that buying a home gives you two things: a solid long-term investment, but also a place that you can use to live in. We shouldn’t forget that second one. That is the most important.
When I was 14 years old, my mother almost lost our family home to foreclosure. The mortgage company had already started the foreclosure process and we were scared. I have to admire what my mother did. My mother was bound and determined not to lose another home. Her family home in Italy was taken from her by the Italian Army at the beginning of World War II. She would not let that happen again. Instead, she got a second job, got a little help from a relative, and saved our home. She taught us what it is like not to give up. I still remember the day that her 30 year mortgage was finally paid off. She was ecstatic. In those 30 years, the value of the home went up almost 10 times, but the real value was the home that was provided to our family and friends for those 30 years.
If you or somebody you know is struggling with your mortgage, there are many resources for you to get advice. One of the best resources available is to contact your Realtor® to find out what all of your options are. Other resources are The National Foreclosure Hotline 888-995-HOPE or No Homeowner Left Behind at 559-234-1492. Hopefully you will choose the best option for your family’s needs and not just one based on statistics. Don’t be a statistic.
