Everything has its own downside, including the real estate. Yes, real estate can be a roller coaster ride, especially if your financial journey isn't a smooth flow. Yet, no matter how financially stable you think you are, you still have to brace yourself up for any collapse along the way. Don't forget that real estate, too, is fleeting.
This is what exactly happened to Heidi Hall, a writer and a renter in Nashville, TN, after Florida's real estate market suddenly crashed, bringing the state's economy into the grave. Heidi relates via Realtor.com how greatly affected her life was during the economic clash as it forced her to get another job and relocate, and worse was to sell her 8,814-square-foot, ranch-style house in Spring 2007. Heidi had to resort to a short sale while sharing this painful journey with other millions who are also caught trapped on housing collapse.
Amid this dark moment of Heidi's life, still she did not let economic constraints get the better of her. She moved on and waited for the day she can pick herself up financially. After some quite long while, she was once again worthy of a mortgage in the real estate, eyeing on an older condo in her neighborhood.
According to John Burns Real Estate Consulting in California, about 600,000 buyers are predicted to buy homes in 2016. Those 3.7 million who lost homes during the economic downfall will be back on track again by 2012, sources predict. This Heidi considered another shot at homeownership.
Moreover, Heidi shared via Realtor.com how she recovered from that financial tragedy.
"No matter what, your credit score is the biggest factor in making you eligible for a mortgage again," Heidi commented.
Delinquency should have no room if you want to make a good name in any credit transactions again, or in real estate, for that matter. You need to prioritize paying your bills on time and clear your name from any delinquent credit, foreclosures, or short sale, Heidi added.
On the other note, banks also have become more considerate of the victims of the housing collapse, even helping them get back to the real estate market again, as per feature article "Saga of a Short Sale: How I Recovered From Real Estate's Collapse."
According to the article, one can start using his credit line two years after a foreclosure or a short sale but in most cases, one has to wait for seven years. Heidi related how banks have been kind to her right after her tragic experience provide that she also does her part as a client.
"We've seen a lot of customers with short sales or foreclosures, but we can help if they work diligently to rebuild their credit score. Pay your bills on time," says Richard Herrington, chairman and CEO of Franklin Synergy Bank in Franklin, TN.
After diligently paying every bill and her credit cards down to zero, Heidi is now able to take her good reputation back as a real estate customer. She shared how her short sale hurt her financial reputation so badly and is now resolved to spend wisely whether the economy is smooth or rough.
If you and Heidi are on the same page, all the more you hold on to the hope that you will eventually recover after any tragic real estate collapse that may come your way.