Chicago based financial guru Joe Aldeguer says that in today’s economic climate some homeowners must wipe the board clean and start with a blank slate.
There is no question that the economy is still in big trouble, says Joe Aldeguer. Unemployment is nearing an all time high. Homes purchased at the summit of the real estate boom are now worth substantially less. Many homeowners, notes Joe Aldeguer, are upside down in a loan on a home that will never be worth what they owe. This is true across the country, and the evidence of this trend can be seen in many of Chicago’s own suburbs.
So, what can be done about it? Joe Aldeguer advises clients of his Chicago-rooted foreclosure management firm that sometimes it is necessary to let go of the present in order to carve out a spot for the future. Strategically allowing a piece of property to fall into default may be a viable option for some homeowners. While this is a difficult concept to accept, Joe Aldeguer often states that a person’s true responsibility is to their family – not to the bank.
When a homeowner chooses to default, says Joe Aldeguer, it can bring a sense of relief. Letting the property go, claims Joe Aldeguer, opens up many possibilities and gives worried families a fresh start. The money a mortgagee is dumping into their house is now free to save for the future or settle other, more manageable, debt. The money set aside once a default has begun, says Joe Aldeguer, may also be needed to lease a residence after vacating the house.
While a foreclosure will have a brief negative impact on the homeowner’s credit score, notes Joe Aldeguer, he reminds clients that it is a temporary setback, and that often a new home may be purchased in just a few years. One of the great things about starting over is that a homeowner can really take the reigns and direct his or her financial future, says Joe Aldeguer.
Joe Aldeguer points out to his clients that it isn’t necessarily their fault their home’s value plummeted. The market, in Chicago as well as the rest of the U.S., bore a greater tolerance for over-inflated home prices in the mid 2000s – everyone wanted a house; everyone got a house. The banks didn’t mind passing out loans like candy on Halloween. This irresponsible lending, says Joe Aldeguer, helped cause the market’s collapse.
It is time, asserts Joe Aldeguer, to act on a solution rather than dwell on the cause of the issues. There is no point in dragging out what may be inevitable anyway. Why struggle to pay for a house that does nothing but create turmoil in the family that occupies it? It is much better for all involved, points out Joe Aldeguer, to cut whatever losses that may be incurred, and start fresh.
Joe Aldeguer may be reached at his homeowner advocacy firm in Chicago, by calling 312-915-8105.
