The trick to staying in a home is being able to afford its mortgage to start with. Here are a few tips that you can use to acquire an affordable mortgage for you and your family.
According to Realtor, one of the mistakes that a lot of people made during the housing crisis was to buy way more home than they could easily afford. Banks allowed customers to take out home loans that were well beyond their means. Homeowners quickly fell behind on their payments because those amounts far surpassed their monthly incomes. You can avoid making this mistake by keeping your mortgage payment to no more than 25% of your monthly income. That way, your mortgage payment will be something you can easily make without throwing the rest of your finances into disarray.
Way too many people bought homes expecting them to appreciate year after year forever.
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Marie Conklin August - 20 - 2010
Our friend Denise Richardson of givemebackmycredit.com has posted an article about how some homeowners are paying their mortgages, taxes, and insurance on time and wind up getting a foreclosure notice. One mortgage company, American Home Mortgage Servicing and other companies engaging in this are forcing the question to be raised: How is this allowed to happen and why isn’t anyone doing something to stop it?
Here’s an example of someone affected by this method of wrongful foreclosure:
Charles Smith says he is irate and at his wits end. He says he has never missed a mortgage payment yet he fears he could also lose his home because of delinquent taxes. Even though Smith has written proof from the county tax office that his taxes have been paid in full, he says his mortgage servicer set up an escrow account to cover the taxes. Then, the company nearly doubled his monthly payment.
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