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Most Former Homeowners Want to Own Again

Not everyone who has lost a home in the past is looking to continue to rent.

I don’t know the statistics, but in my experience most former homeowners would rather own than rent. They are only renting because, for one reason or another, a mortgage is not available to them.

From everything we have all read about foreclosures and short sales over the past few years, millions of these former homeowners are now renting, but not because they want to. Many should never have owned a home, but many are not homeowners because of loss of jobs, health reasons, divorce and other reasons over which they had no control.

I am in the process of doing a mortgage for Jeff. He lost a home a few years earlier, after a pretty tough divorce, as he described it. In the divorce settlement, his ex-wife ended up with the home. The divorce decree was specific that he was to be held harmless for the mortgage payments. Unfortunately, many divorce lawyers don’t understand that the words hold harmless are a waste of letters on a page.

The ex-wife defaulted on the loan, which affected Jeff’s credit and made him unable to purchase another home. This was the only thing outstanding on the credit report and three years had gone by since the completion of the foreclosure. I had spoken to him many times over the last few years, as he wanted to buy a home, but no financing was available to him, but now I was able to do a preapproval for him.

He will make an excellent homeowner and great neighbor.

This article has a different point of view:

Rent Increases Don’t Deter Former Homeowners from Renting

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Scott Wheeler February 13, 2013 at 03:43 AM
"Jeff's" lawyer is not very good; end of chat. With Boomers moving away or downsizing home ownership is beginning to be way over-rated, the amount of homes coming to the market in the next 5-10 years will insure prices remain in place with little to no growth while maintenance costs will dig into the retirement savings. Jones vs Smiths will ensure one thing......you will work way into your 60s.
Joel Mrosek February 13, 2013 at 03:49 AM
Scott is correct. NOTHING in a divorce decree is binding on a creditor or the IRS. They still retain the rights to seek repayment from whomever the original borrowers were. The overall poor quality of lawyers is a disaster waiting to happen. Anyone can get into a law school. A very bright woman and pioneer in the field of law recently said, "there is a law school for everyone". Horrible legal advice is the norm, not the exception. Corruption throughout the legal system is not only permitted, but condoned.
Joel Mrosek February 13, 2013 at 03:57 AM
Scott, I believe the only way the federal debt will be dealt with is through very high inflation. Certainly we can't pay it off. If that is the case, real property will be the place to be invested.

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