Property Crossroads - Real Estate Info

Owning a home : Live the dream…don’t turn it into a nightmare!

by Maricel Ferrer-Custodio on April 19th, 2007

Lately, the real estate industry has been giving a lot of buzz about the meltdown of subprime loans.  Most of those who availed this type of loans are those who have imperfect credit, few assets and don’t qualify for standard loans.  They are the most vulnerable to foreclosures; specially since subprime loans have higher fee and payment structures as discussed in this video report by Gerri Wilis for CNN.

The following video link talks about a story of a migrant, Isabel Frias. She claim to be victimized by a rouge mortgage broker, who took advantage of her desire to own a home and her lack of familiarity with the English language.  She took a subprime loan with little knowledge that she is over committing herself.  She only realized it when she got the first loan repayment, which is way above her expectations and capacity to pay.  Eventually, the inevitable happened. After a short eight months of living in her dream house, she is now facing foreclosure.  Her dream turned into a nightmare.  She is in a much worse situation than when she started.

Here is the link to her full story as reported by CNN’s Gerri Wilis.

The story of Isabel Frias is only one of the thousands who are currently facing foreclosure.  She had to live the nightmare before she learned her lesson. It is a reality check for those who are contemplating on buying their dream home beyond their capacity. 

The banks are there to make money primarily by loaning money and not from selling real estate.  If you did not qualify for a standard moorage, there must be a good reason why.  I’m not suggesting that you don’t pursue other avenues to own a home or any property.  However, it is a good sign for you to evaluate what you can comfortably afford.  Remember, it is better to pursue a dream than live a nightmare…

Share This

Related Stories

• A Quick Overview of “Subprime Loans”
• How to check if you can you really afford to buy your dream house?
• Real Estate Tip No. 2: Be Financially Prepared
• Living above it all in New York City
• Cost of owning a home keeps going up

POSTED IN: Buying a Property, Foreclosed Properties, Real Estate Scams