There is a huge buzz going on in the world today regarding mortgages. The real estate market is calling it a buyers’ market. The problem is-no one is buying. With the recent turmoil surrounding the bail out and details coming to light in regard to huge mortgage lenders and the extent of their bad loans, added to the state of the economy, I believe people are afraid to buy. We don’t know what is going to happen. We may lose our jobs, not be able to make payments, the rates may drop even lower and we’d be stuck.
Part of the issue surrounding the bad real estate loans that our Government has taken on the responsibility of ‘bailing out’ is that a lot of people are simply willing to walk away from their mortgage. How does this happen? When you were house shopping, you decided you wanted your house. You arranged financing, filled out all the loan brokers paperwork, AGREED TO THE TERMS AND PAYMENT SCHEDULE and signed on the dotted line. You committed to that house at that price, for that payment, for that term. What changed?
Please know that I am not speaking as if I am self-righteous or judgmental. I too have a mortgage I am three months behind on. I too have a house that is worth less than I owe. I too have a husband who was recently laid off. We have depleted our savings and are very afraid we may lose our home. But I am working full time, freelancing on several web sites as well as selling beauty products to help supplement our income. My husband just got a new job and hopefully we will be able to recover.
The point I am trying to make is we made a commitment. We made the decision, whether it was bad or good, smart or stupid, to purchase our home. We have a responsibility to meet that commitment. We made a promise. If I purchase something on credit and the value increases, I am not expected to pay more for that item. So why do we think that if we purchase a home and our home loses value because of the market conditions we should pay less? Or that we should not pay it at all? That is simply wrong, in my opinion.
I love my house and I am committed to keeping it. We have been in it for 8 years and have a 20 year mortgage. Our original plan was to keep it until our kids graduated from high school. Both my husband and I will do whatever it takes to make the payments and keep our home. We are willing to sacrifice and work together because that is what a commitment is.
I encourage anyone in a like situation to communicate with your mortgage brokers or mortgage company. They may be able to offer you a renegotiation or a refinance option. You need to speak with them on a regular basis to avoid foreclosure. Look for ways to meet your commitment, not for ways to get out of it. Each of us must take responsibility for our own decisions regarding our finances. Win or lose, it is up to us.