With the housing crisis…and the startling amount of foreclosures (over 1,500,000 homes have been foreclosed on in the US….and that is not even half of the homes predicted to be repossessed in the next two years).
We find ourselves wondering…will the American dream of home and white picket fence ever be the same? Has it truly…died?
At first glance, it seems to be on its last breath.
Home sales have gone down by 25% since 2008. Housing markets have tanked. The average price of a home has fallen by 29%. Cities like Las Vegas and Phoenix have seen home values drop by 50% in three years.
As a result, the average American family is a lot poorer than it was back in 2008. Though there are still options to get a loan after short sale and buy a house after foreclosure, people just aren’t going after those loans because they don’t know all of their options.
So can you still buy a house after foreclosure?
Is the American dream dead? I believe that is is not.
The dream of owning a home, of being able to buy a house after foreclosure still exists.
In fact, buying right now can be a really smart thing to do. It’s a great investment.
First of all, you save money by not paying rent. On average, a mortgage payment is about 6 percent less than rental costs…and, eventually, you don’t even have to pay them (once the house is paid off).
And if you can hang on to the house through thick and thin…it will be an untouchable investment. That’s something you will never get with a stock or a bond. If your stock plummets, you never get that money back. If your local real estate market plummets, you can still own a home.
Secondly, if your house appreciates in value, you can sell it and make a tidy profit. Not only that, you don’t even have to pay taxes on that income as long as it is your primary home!
Interest rates are also tax deductible and lower than they have been in years! Especially if you get an FHA-insured loan at 3.5%. Home Loan Academy employs a few FHA experts, so we can help get that process started for you if you’re interested.
Thirdly…it’s cheaper than it will ever be in your life time! About 30-50 percent cheaper depending on where you live.
And because Obama is doing so much to help owners, you can utilize an eight thousand dollar first time buyer credit (which you can use even if you are not technically a first time buyer) and get down payment assistance.
read a good article about down payment assistance here:
Here is a NY Times sample of some of the math behind home ownership:
Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.