The newscasters report that the economy is improving and that the Great Recession of 2008-2009 is over… then in the next breath they report that unemployment numbers are at record highs. They report that housing starts are up and that existing home inventory is down…but again…in the next breath it is foreclosure after foreclosure after foreclosure.
What do you do if it happens to you? As harsh and as simple as it may sound – you figure out a way to start again. That’s what we do as Americans…we figure it out.
I heard on KCBS the other day that a venture capitalist or entrepreneur isn’t even taken seriously without failing at least once or twice first. Bankruptcy to people like Donald Trump is almost a badge of honor.
But to rise again…you have to get through today and the here and now can be daunting. So, what do you do if you are going to lose your house?
If you can’t make your payments call your mortgage broker and see if you can cut a deal. You don’t need an attorney or a company specializing in this. With so many foreclosures the bank doesn’t want your house back. But you need to speak to the right person. No offense to the person who answers the phone – but you want a manager or even someone higher. You need a deal and there is no use explaining your story twelve times to someone who can’t help you.
If you can’t strike a deal with the mortgage company, approach a relative or friend or even put an ad in the paper looking for someone to take over your mortgage and rent to you. If it is a relative or friend…make a deal to buy it back when you can. If the only way to do this is to place and ad and get a stranger…do it and move on. This option is better than a foreclosure or a short sale…while neither is the end of the world…both stay on your credit report for extended periods of time.
If you do lose your house…find a place to stay…go with the cheapest rent in the nicest area you can find. If you stay with relatives or friends that live out of your children’s attendance area – call their school and they will help you. Actually, they are obligated under the Federal McKinney-Vento Act to let you stay in the school – they may even be required to transport them there. Ask…as the least disruption your children face the better. This is stressful for them too.
Make sure the place you choose to live in is affordable. Take time to take a deep breath and relax. Use the time to examine your life…you may have lost your home…but you gained a new start…
Take stock in what you have…even if that is just the ability to go out and start again…some people in some countries are not so lucky. Not to get political…but this is American and we are far from over – you are far from over. We, as Americans, have the ability to rise and fall and pick ourselves up and start all over again. Indeed, I challenge you to find one success story without several failed attempts behind it.
This may seem Pollyanna, but remove yourself and think about it. At the point at which you know the house is gone…or the hole is so deep you can’t dig out…think about what you need to do to get ahead and move on. I was in high school and college in the late 80s and I saw it happen over and over and over…and you know what…they all survived.
So, give yourself a day…throw a fit…cry…rage…scream it isn’t fair…and then give yourself a second chance.
