Home ownership is a wonderful thing. When you have a roof over your head where your family can be together, share life, and grow, the feeling is wonderful. When you own that roof, those walls, and everything in between, the feeling is even better. However, when that rug is pulled out from under you, it can be absolutely devastating. Just ask any of the countless families facing foreclosure today. That’s why it’s so important to stay on top of your mortgage.
Food for Thought
Before you agree to take on a mortgage and enter into the blissful (though sometimes stressful) world of homeownership, please do yourself and your family a favor and run some hard numbers. If you lose your job, how long will you be able to pay your mortgage before you face foreclosure and, possibly, bankruptcy?
If the answer is anything less than six months, hold off! As great as homeownership is, if you aren’t completely able to pay your mortgage in the event of an emergency, you’re probably better off renting for now. No one likes to sink money into a rental; however, it might be the best option for you at this time.
Before taking on a mortgage, smart homeowners have backup plans. Of course, even the backup plans can fail. But, thinking about all of the possibilities and deciding on a backup plan reduces your risk for foreclosure and bankruptcy!
Don’t waste any time—be sure to have a conversation with your spouse and a trusted financial advisor about what kind of backup plans might be available to you should you become unable to pay your mortgage!