I love my wife, but she constantly listens to her older cousin about how to handle real estate matters. Which to some extent I understand; they are close and her cousin is like an older sister. But lets consider the source. Her cousin in the past 2 years foreclosed on her home , in which she overpaid for back in 2005. She also refinanced this property in 2007 (cash out) completely leveraging herself just to "Fix the House" (vacation)? Then she borrowed from her 401K & received her inheritance money early to buy a mobile home where she does not even own the land (mobile home park). ? Her next move was convincing her daughter and husband who just got married to buy. OK Fine, but they over paid in a hot market in the summer 2013. So now they have an FHA loan on a property that is already underwater $30,000. Everyone makes mistakes, but if you listen to her tell the story you would think she is the Warren Buffet of real estate!
To my main point. Having been working in the distressed property market for the last seven years. The number one reason people lost their homes was from bad financial decisions. We can blame the banks, real estate agents, loan officers, etc all we want, but these all just the components that make of the real estate industry. Most people seek advice somewhere, usually from someone they trust as some type of authority figure. In many cases the advice given is jaded due to some type of agenda or possibly the inability of some people to recognize "Bull S%&^*". It in many ways it is like getting "Stock Tips" from individuals. It is amazing how everyone tells you about their great picks, but fail to talk about their failures?
Back to my wife, where should she go for advice? or anyone in general? (YES, she could talk with me, for the married people out there you will understand the dilemma). To my real main point! For many people the main issue is a lack of understanding the real estate market or any particular financial matter. The lack of educating ones self to where you can tell if the advice you seek is GOOD or BAD and distinguishing the difference. Lets face it we do all want to hear what we want to hear. Trying to get my wife to read about different mortgage programs and the benefits and negative of each program is down right impossible. But , if her cousin said the best loan program is FHA? (you get the point). We grill our kids to do their homework; it is funny as adults we will not do the same? Remember my wife could be your wife, husband, son or daughter who is looking for answers. Who and where are they getting their information? What type of information are they getting?
After all this this I get to plug www.helphousing.net as the greatest business in the world guiding consumers in the right direction in regards to their housing needs!! (I guess this would be an agenda driven plug). But our affiliates do work in real estate, lending, escrow, legal matters , non-profit etc . We offer a wide scope to help consumers. But at the end of the day do your homework, educate yourself, and do not get pressured into bad financial decision because your neighbor did. In life you need to "PLAY YOUR OWN BALL" (golf analogy) Good Luck
Brian McFedries
858-405-5094
www.helphousing.net
