Buying a home was the American Dream – it was suppose to make you better off
financially, socially and happier with a higher standard of living. But has this changed over the past few years? For some, there is no doubt that it has. Businesses reducing the workforce or Closing has put a tremendous strain on the economy. And for the homeowner or owners who lost their jobs, the dream has turned into a nightmare. One of our former Presidents stated; “If you own your home, you’re realizing the American
Dream”. And it still is for the ones that can afford to meet their obligations and having
the property paid off prior to retirement.
For a number of years, mortgage lenders were financing upward of 110% of the property
value to make a loan and setting the interest rates for some at a variable rate so at the time the customer was borrowing the funds, they could afford the payment. Little did the
customer know that down the road this payment will or could change and now instead of
have the 25 to 30% for the monthly mortgage payment they now do not have a large enough paycheck to handle their monthly obligations.
Sounded very exciting for numerous first time home buyers. Now seeing what has happened with the economy, things don’t look so rosy. You may live in one of the areas of the United States that has been hit the hardest with unemployment. Now there are numerous properties that have been foreclosed upon, or where the homeowner has just walked away from. And trying or hoping to sell your property in a distressed market, (in my opinion) you would be fortunate to get back 50% of the value.
So there is no wonder why people are walking away. So if you are in the majority of homeowners that still have employment and can afford to stay in your home, the American Dream is still the American Dream. If your interested in buying a home in North Dakota you can check out Grand Forks Real Estate.
