Did you know that every three months, around 250,000 families experience foreclosure? Foreclosure is easily one of the most humiliating and damaging things for a family to go through. Parent’s are forced to move their lives into tiny spaces with family members. Many of them certainly don’t have the cash to buy new homes. So, how can potential buyers avoid this fate?
Work with a local real estate agent
Remember that the larger your home is, the more your lender will make. Lenders may not have your best interests at heart and could encourage you to bite off more than you can chew. By working with Real Estate Agencies, you can have an honest conversation with your Realtor about what you can spend, how much certain homes will rise in value, and what budget line you can not cross.
Consider more neighborhoods
Let’s be real, you won’t be able to afford every neighborhood. Don’t be afraid to go to a mid-level neighborhood so that you can get all of the amenities you are hoping for. For example, California buyers see a huge discrepancy from community to community. In Los Angeles, the average home price is more than $550,000 while in Palm Desert, that number drops all the way to $278,000. Both are located in the Sunshine State, so don’t be afraid to head to Palm Desert if that is what your pocket book calls for.
Sell before you can no longer afford your home
Sometimes foreclosure happens quick. One person loses their job and before they know it, their house is being taken. It’s important in these situations to be calm and act rationally. If you get the feeling that you soon will not be able to afford your place, get on the horn with a local real estate agent! Those working with a Realtor are 120% more likely t sell their home. It’s much better to sell and get something you can afford than to be foreclosed on.
Foreclosure is common enough for us all to know that sometimes it happens to the most responsible people. However, as a new buyer, this is your chance to learn from those tiny mistakes so that you can avoid the miserable fate that is foreclosure. This is a great source for more. Read this for more.