RIDDLE REALTYThe Real Cost of Foreclosure and Bankruptcy.
The real cost is that potential home owner has to wait a long time to purchase a home. It may be many years after a bankruptcy, foreclosure or short sale before a person can buy a home. See the page for estimated time to get a loan after foreclosure, bankruptcy or short sale. The time to buy a home is when prices are low. Prices are rising and so are interest rates. Home ownership is now below the cost of renting a home. The cost is of delay, higher deposit and interest rate. This is the time to buy.
The lost opportunity will cost prospective home owner Ten of Thousands of dollars in raising prices, higher interest rates, lost tax deduction, etc. In addition to this, utility companies and other companies will require increased deposits for such as rental companies, phone, electric, water, cable, etc. Credit card interest will be high if you can get one. These little costs add up.
Most people do not know that a foreclosure or bankruptcy can limit the type of job. Sometimes you can not get a job with a government clearance. Many contractors work for the government. You may also be restricted as to certain types of licenses, ie nurses, doctors, lawyers, accountants, insurance brokers, stock brokers, etc. This is why a short sale is a better option. We have helped many professionals.
Home ownership is not an investment. It is a life style. Just because you filed bankruptcy, had a foreclosure or a short sale you may still be able to buy a home.
The best advice is that one has to be proactive and investigate your finances. Act now, so you can buy sooner than later.
We can Help. If you have any question or comments, please contact me. My direct line in the U.S. is 858-272-1958
Arthur J. Riddle, Esq.
Email: info@artriddle.com
**This page is for discussion and educational purposes only, and is not intended to be advice. Each situation is unique and should be discussed with a proper professional.