Buying a Home in a Weak Market
The purchase of a home is a major financial
commitment. While it is a decision that should always be made
with care, the weak real estate market means you should exercise
even more caution. Don't let the excitement of looking for your
dream home prevent you from following these tips
Debt Is No Longer "In"
Instead of saving, consumers have been refinancing
or borrowing against their home equity and using credit cards
as cash. But with home values decreasing and foreclosures increasing,
debt no longer looks like the solution to consumers' money problems.
The Tax Consequences of Debt Forgiveness
When the value of a home is less than the
outstanding debt, the homeowner's options are dismal. Foreclosure,
deeds in lieu of foreclosure, and short sales all result in the
loss of the home with serious credit consequences for the homeowner.
In addition, if the lender forgives part of the loan, the homeowner
walks away with nothing, and there may still be tax consequences.
Give Your Kids a Good Financial Start
It's a common enough goal - to live a better
life than your parents. While you may be able to say you accomplished
that goal, how likely is it that your children will be able to
say the same thing? To help them with that pursuit, make sure
to teach them these important financial lessons.
What Is a Short Sale?
Many homeowners are faced with the fact
that their home's market value is less than the outstanding debt.
Rather than going through a foreclosure or turning the home over
to the lender, some homeowners are attempting a short sale, which
is a home sale for less than the outstanding debt.