LC’s Commentary

Listen To The Voice of Reason

Up the creek without a paddle

I view with great interest the debate over what to do about the ongoing housing mortgage crisis. The crisis is cause for great concern.  One must question how in the world we got in this mess. We must look at all aspects of the problem. I will attempt to address the homeowner side of the story only.  First let us agree on one thing-if you take possession of a home and agreed to pay a set amount each month to satisfy the loan obligation, then, clearly, you are expected to make the monthly payments on agreed to set date. Prior to making and signing an agreement with a lending agency, an individual must make a sincere effort to ascertain if he or she can meet the obligations spelled out in the loan document. It makes little sense to look for excuses why your home is in foreclosure if the agreement spelled out in the loan document is not met. If an individual does not like to read, this is one instance where exceptions must be made! Carefully read the loan documents. Why? These documents spell out in detail, the terms of the loan including what happens if you do not fulfill your obligations.. Read all of it, including the fine print. If you do not fully understand them, get someone who does to explain them to you. If for some reason you find yourself in a situation where you can no longer meet the loan obligation, immediately contact your financial institution and see what adjustments can be done. Many loan institutions will work with you and adjust the payment schedule, within reason so you can meet your obligations. It makes no sense to sit back, not pay and assume the lending agency will not take action.  After all, lending institutions do not make money foreclosing on homes. The last thing they wish to do is take another dwelling. These agencies foreclose as a last resort.

What is taking place in the housing market should be a wakeup call to all contemplating going into debt. With all kinds of schemes designed to get an individual to agree to go into debt available, it is imperative that a reasonable understanding of debt management and obligation must be ascertained.

Individuals must adjust their lifestyles so they do not have to become victims of check cashing, pawn shops, and high interest loan companies. Paying a little less for things is one answer. Things like cell phones and ipods can put a strain on people who have limited incomes. Buying automobiles that are beyond ones ability to pay is another way to indebt yourself. Pay more attention to what you pay for entertainment is a good way to keep more of your money. Wide screen televisions are the latest fad-some costing several thousand dollars. Is there a real need for one, if you are having trouble paying your house note? Is it time to decide between toys to entertain and your home? I really do not see where there should be any serious consideration about which one should go. Adjust your lifestyle so that you are living within your means and have a little left over for a rainy day account. Save something each payday. That way you know you are living within your means.

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December 16, 2007 - Posted by | Uncategorized

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