A Band-Aide For Foreclosures

Now that federal lawmakers are weighing in about the subprime woes and the increase in foreclosures and how to offer financial aide to those homeowners who are on the brink of losing their homes, I guess it’s ok to say that this situation is serious. I am being sarcastic.

The band-aide that is being proposed is great. This band-aide may stop the bleeding for some, but for others it is too late. Many families need help, and without some financial assistance they may also lose their homes. 

What happened?  There are enough reasons to write at least 50 blog posts. For me, now, it is, ironically, a good opportunity for those getting ready to buy a home to stop and look in the mirror. Here are some questions to ask yourself:

1. Have you written out a budget, including a proposed mortgage payment?
2. Have you met–in person–with a loan officer who reviewed your information, documentation, and your budget?
3. Have you decided that your loan officer listened to you, answered your questions, and explained any documents that he or she asked you to sign?
4. Have you established, with the loan officer, your potential purchase price that will keep you within your budget?
5. Have you reviewed that budget–again!–to make sure you are not surpassing the amount that you have committed to yourself?

When you have left the meeting with your loan officer, you may feel a mix of emotions. Excited. Nervous. Relieved. 

You may feel a bruise here or there. That’s from your loan officer giving you honest advice, that the $250,000 property you “peeked” at this weekend will put you above the budget that you have established.

A small band-aide will help. Your bruise will get better. Imagine how it hurts for those who didn’t follow the steps you just took.

12 April 2007 | First Time Homebuyers, Pre-Approval, Good Faith Estimate, Loan Officers, Foreclosure | Comments

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