The Foreclosure Crisis Of Foreclosure Essay

809 Words Dec 8th, 2014 4 Pages
Foreclosure is certainly a scar that these former homeowners will carry with them and will affect their future decisions. In many cases, confidence is lost in the wake of losing a property through foreclosure. With some encouragement and education these “boomerang buyers” will gather the tools they need to be more cautious in their future real estate purchases. These safer options include the rarely discussed “100% down” plan, the “rent-to-own” option, or at a minimum the “large down payment” advantage.
First, the “100% down” plan is the safest of all options because no property can be taken if it is owned free and clear. Many of the foreclosures that occurred were due to purchasing too much house for their ability to pay. Others took on high risk by signing for adjustable rates or balloon mortgages that had the possibility of rising out of the homeowner’s budget. The “100% down” plan eliminates the obvious which is the need for a mortgage in the first place. There is no substitute for buying what you can afford and easily pay for not to mention the interest rate is incredible!
“Debt Free Donald” lost a house in 2009 and decided he had enough of this kind of pain and decided to live as cheaply as he could for three years while working like crazy to stash away a majority of his income. After three years of excessive frugality made possible by being single and living in a one bedroom apartment while making $50,000 per year, he had gathered $90,000 and put that down on…

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