A Foreclosure Is Not Always Bad
Although stressful, there are times when a foreclosure may be helpful. Some people may find that a foreclosure provides the much-needed “fresh start” that allows them to regain control of their financial future and lead a more enjoyable, stress-free life.
How Can a Foreclosure Be Helpful
There are several ways in which a foreclosure may actually be beneficial to you if you are struggling with your house payments. Potential benefits include the opportunity to:
- Start Saving. A mortgage is typically the largest single investment that any household makes. During tough economic times, it can be challenging to keep up with monthly mortgage payments, taxes, insurance, repairs, and maintenance. Everything from saving for college to taking a family vacation becomes harder and harder as you struggle to maintain the mortgage. Many families find that a foreclosure allows them to downsize their living expenses and regain control of their finances so that they can begin saving.
- Make a Fresh Start. A foreclosure takes time to complete, and during this time many families are able to use the money they were putting towards monthly mortgage payments toward paying down high-interest credit cards or other debts, further reducing the amount of monthly debts owed. However, during this process you may be subject to people trying to provide false aid, so be aware of the many foreclosure scams that exist, and be sure you don’t become a fraud victim.
- Increase Mobility. The inability to sell a home or get out from under a big mortgage can negatively affect your life, job, and even retirement. A foreclosure provides the freedom that many people need in order to pursue other jobs, relocate, or acquire additional training and education for themselves or their children.
- Simplify Life. Bigger isn’t always better, especially when it comes to real estate. In fact, sometimes bigger is just more expensive. It takes money to repair and maintain a home, pool, yard, and even appliances. Worse yet, those who have downsized or purchased more home than needed often find that they are slaves to the constant maintenance required to keep the home in good condition. Take stock of your lifestyle and determine what size home you really need in order to feel comfortable and to provide a safe environment for your family. Not only can a foreclosure allow you to reduce the monthly costs associated with home ownership, but you might also find that the additional time and extra money allows you to reduce working hours, giving you more time to spend with family and friends.
- Less Stress. The perpetual threat of late bills, delayed maintenance, and constant upkeep required for a home that is draining every dollar from the family budget leads to stress and tension. Research shows that money problems are the number one cause of divorce in the nation. A foreclosure provides the opportunity to live within your means and reduce the stress and anxiety associated with waiting for financial disaster. Read about how to prevent foreclosure, some foreclosure prevention tips, and if you are already behind, read about how to help stop foreclosure.
If you are facing foreclosure and are concerned that it may not be beneficial for you, read about how you can get foreclosure help through the 2009 Economic Stimulus bill provisions.