Are there a number of folks foreclosing and getting into a new house? And what about the rest of us?

Question

I have a good friend who's currently in foreclosure proceedings for a townhome, but he just recently signed to get into another house. I'm not sure how he was able to do it since we're both single and make about 45k / year. His new mortgage is slightly lower but he has two roommates who are paying $800 / month. What are the consequences of actions aside from these? And how will this action affect the rest of us? I live in California, was recently asked to relocate for my job to Texas and keep the same pay but passed because I couldn't leave my family and friends. I currently rent an apartment but would like to invest in a home one day. I'm 31 and single, but I feel like my slim chances at ownership exist through marriage. I'd rather not rely on friends or roommates to help make a mortgage, and shouldn't look to marriage as a means to an end either. Thanks for your time folks. Happy holidays.

Answer 1

There are some individuals that are willing to take a risk, apparently you are not one of these individuals.

The contract you sign with the lender does not indicate you can not charge a person for renting one of your rooms, nor does it indicate what you may charge a person for renting one of your rooms. Your friend is taking a calculated risk that could be very prosprous for him or back fire on him. It looks as if it is working for him presently.

It would be the same as if a person purchased an apartment as an investment property. The idea is to get some others to assist or pay the mortgage for you.

Things are a bit cheaper in Texas than California as I reside in California and have a sister living in Dallas, She decided to rent there, and from what she has there at $450.00 per month would cost about $1,500 in California.

That is a decision you made because of your wanting to be with your family and friends. You have to make decisions that make you feel comfortable.

Marriage is a pact between two individuals that physically, financially and socially bind them together. So to have a marriage partner assist in the purchase of a home is very a good idea and not uncommon in todays society.

You have to remember that life is a challenge and how you handle the challenge as well as the risk you take.

Remember a formula I learned long ago

A risk+ a plan =Success

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

i definitely doubt you have the credit to purchase a house. you are able to seem into any state classes. in my state of MN, it quite is termed the 1st time homebuyers application. it quite is purely greater decrease priced to purchase a house than to hire while you're specific you will stay there for a minimum of 5 years. The remaining costs on the internal maximum loan and the reality that on the beginning up of the internal maximum loan, you may pay plenty interest are aspects. you besides mght could get the abode inspected. Foreclosed on residences in lots of situations have some considerable issues like one I regarded at had a cracked slab from an earthquake, besides the undeniable fact that it develop into lined up with carpet. additionally, upkeep costs particularly upload up. i'm particularly in choose of paying for for quite than renting, yet identifying to purchase is sensible on condition which you have a great existence, which few little ones do, you intend to stay interior the abode a minimum of 5 years, and you will have a 10% down fee, additionally. It wasn't smart to get a great canine once you're too youthful to have plenty decision in what housing you get. This develop into unfair to the canine and is a considerable reason people provide pets as much as the humane society. possibly this could be a canine out of your adolescents, nonetheless, and that i'm getting that.