Itâs a little-known fact that most of the 2008-2011 foreclosures were on refinance loans, not purchase loans. Sometimes trying to stay afloat pulls us under faster.
Thankfully, I havenât sat down at a kitchen table with a truly distressed homeowner in yearsânot since 2008, in fact. And as I've said, I donât see anything similar happening again in my lifetime.
But there are some signs of trouble on the horizon for current LA homeowners. The entertainment industry just got nuked, making affordability a potential (or current) issue for out-of-work industry members. And as we see adjustable rate mortgages begin to adjust (from 3% say, to 6-7%), affordability may become problematic for those homeowners.
What do we say to this? C'est la vie. There is no shame in selling your mansion and buying a duplex - in fact, being financially secure is âchicâ says my wife.
Finances are seasonal, like real estate markets. Winter hurts but summer is always around the corner. A bankruptcy filing may feel embarrassing but soon forgotten. Birthday parties at parks are just as fun with the people you love. And whether you're flying first or coach, we're all going the same place.
My heart goes out to the friends and family of the Millers.
There is no hole you can't dig yourself out of with a plan.
If you're feeling stuck financially, please feel free to reach out.