Tuesday, May 13, 2008

Debt in todays economy!

Was it just a year or two ago when the housing market is so hot, People just keep selling their houses, I think some of the reasons are as follows: others just want to upgrade to a newer and bigger house. Some would buy houses for investment because housing prizes are just skyrocketing that time and it is really good for investment or others are just moving out of state. I can still remember that time, just here in our neighborhood alone almost in every corner of our street there’s always a “For Sale sign”. And people doest have any problems selling their houses because the demand for houses that time was just amazing. And we were one of those home owners that time that didn’t have any problem at all in selling our house. It only took 2weeks on the market and our realtor called that somebody is interested at the house already without even seeing it in person. So both parties signed the documents needed and finally sold the house $5000 more above our asking price. We just couldn’t be happier; we were just so relieved that finally our house sold in less than no time at all in spite of the competition. So its time to look for our next house now that we would call home apparently. The processed wasn’t easy as I thought it would be, because we were looking for a bigger house that would fit our growing family needs and that would also fit on our budget. We don’t want to go overboard with the prize for we don’t want to end up losing the house at the end for not being able to pay the monthly mortgage. Being a homeowner aside from the monthly mortgage you would still consider other payments like your gas bill, water, electricity etc. And that time we have to be aggressive in finding a house, because where ever we go there’s always a waiting list or lottery and every time they have a new released prizes is already up 10,000 more originally. Thank goodness that after a few weekends of searching we were able to manage to find the one that we liked the best.

Anyway, few months later, almost a year to be exact as we were driving within our development we managed to stopped by at our old house, just curious about the updates that the new owners have made already especially at the front and the front lawn. To our surprised we saw a “For Sale” sign already by the bank , so in other words its in foreclosure, and not only that, there was also a big sign at the window porch about the asking priced. And its 40% less to what they originally paid for. So we thought that they only bought the property for investment and hoping that the value of the property would still go up and at the end they really couldn’t afford to pay for it monthly fee. Because according to our old neighbors they didn’t really lived there and ever since they took over the house they’ve been doing a lot of changes inside. We felt bad for the people who bought the house though, but that’s just the reality in today’s economy. debt advice

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