Everyone struggles. Because of how easy it has become for people to broadcast their lives, we get a false impression that celebrities don’t face the issues that challenge us all. Having more money doesn’t eliminate problems. Expensive assets and property are costly to maintain. For example, if you purchase a boat for $1 million, you can plan on spending upwards of $250,000 the following year to maintain it.
The amount of money you earn each year and your net worth are important, but the degree to which you spend it is significantly more so. When you don’t invest in yourself first, regardless of which tax bracket you land in, you can find yourself living paycheck to paycheck. At one point, Mel Gibson owned three houses in Malibu that were facing foreclosure. Burt Reynolds was more than $10 million in debt. Nicholas Cage owed $35 million on a home in Bel Air that went up for auction.
We aren’t highlighting these people’s issues to engage in mindless gossip or to revel in their misfortune. Regardless of income level, everyone must deal with challenges such as loss of income, divorce, and being over-extended.
Finding a Solution
Getting knocked down is minor, but standing up again is everything. If you are facing foreclosure, you aren’t alone. If you can’t pay your debts, it doesn’t matter if you make $900,000 a year or $30,000 because the pressure and stress feel the same.
Find a solution. One option is to apply for a loan modification through your lender to lower the amount you must pay each month. Your ability to modify your loan is dependent on your income, the details (and type) of your loan, and your lender’s policies regarding modifications. Even if your lender is not willing to modify your loan, multiple counties in Illinois offer foreclosure mediation services so that both sides can work towards a mutually beneficial solution.
We mentioned above that the type of loan matters. You can contact your lender and ask if Freddie Mac or Fannie Mae backs your loan. Congress created these to financially back mortgage companies. (Freddie Mac pertains to larger lenders such as commercial banks, and Fannie Mae works with smaller organizations.) Both may offer Flex Modifications that may enable you to obtain a lower interest rate or a forbearance. When you have forbearance, the payments you make on the principal amount of the loan can be delayed to a future date. Other options include:
- Refinancing
- Reverse mortgages
- Deed-in-lieu of foreclosure
- Short sales
Auricchio Law Offices
The real estate attorneys at Auricchio Law Offices are experienced in handling transactions and litigation. That means we can assist you with buying or selling your home and issues you face in the future. We will represent your interests now, so you don’t run into problems later. Contact us today to schedule your consultation.
Auricchio Law Offices
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