by Diana Howard

Created on: August 20, 2008   Last Updated: August 24, 2008

Your home can be one of the best investments you will ever make, so whatever you do, do not walk away, until you have exhausted all possibilities and even some probabilities. Even if you do the "right" thing and try to short sale your home or give the bank a deed in lieu of foreclosure, you can kiss your chances of ever owning another home goodbye...unless, of course someone dies and leaves you one.

One of the things that I have learned in twenty-five years of investing in Real Estate is that, handled properly, Real Estate is one of the most stable investments that we have. Prices do fluctuate and yes, it is possible to lose money, but as they tell you in the stock market...you don't lose if you don't sell.

For those of you involved in stocks and mutual funds, and not familiar wiht Real Estate, let me speak in your language. If you have money in the stock market, can you "rent" that money to another individual for awhile while the stock recovers? I'd like to see you try it! It is a certainty that if you need the money...you must sell and take the loss. In the same way, you must make your mortgage and tax payments and if you can't, then what? Unlike stocks there are several ways to preserve your home. In fact, living in your home actually makes it a liability and not an asset. Let's see if we can change that. Here are some of the possibilities.

Try first, if you can to refinance your home. Most people will find that they cannot do this, however, because home values are now lower than most mortgage balances. Check with a local Realtor to find out what rents are going for in your area for your home. Many who cannot now pay their mortgages, bought beyond their means and are living in some upgraded larger homes, which might bring in enough rent to cover most of the mortgage. If you walk away from your home, you and your family must move andlive somewhere else, so why not rent your property to someone else. Select a home for yourself that you can more easily afford and rent it, while someone else lives in your property.

At the very least, you may want to open your home to a person who can only afford to rent a room. Room rents in my town average around $550 to $600 per month. Educate yourself and make sure you screen each person well. If you have a bed and bath downstairs, an elderly person may make a good tenant.

The advantage to the "rent your home" scenario is that if you can establish a renter for six or more months, in your home and you have not totally ruined your

• 1
• 2
• 3
• Next Page >>