Mortgage

Making Homes Affordable: Foreclosure Myths That Are Not True in British Columbia

With the pension getting a bad reputation and the future looks gloomy, people are moving away from the more risky means of investment such as the stock market into more secured and stable ways of investing for their future. Buying a second home seems to be one of the best ways for a better financial future. Here are some of the most popular reasons why people are looking at second home mortgages to finance the purchase of their second home.

With the pension getting a bad reputation and the future looks gloomy, people are moving away from the more risky means of investment such as the stock market into more secured and stable ways of investing for their future. Buying a second home seems to be one of the best ways for a better financial future. Here are some of the most popular reasons why people are looking at second home mortgages to finance the purchase of their second home.

They have taken the stance that they will simply price the loan according to the client’s criteria, but won’t just give a NO if there is merit in the application. Pricing the home loan would involve approving it at a higher interest rate or granting a lower amount or both, because of the risk involved. Therefore, the applicant may only get a 80% bond.

Myth #2 – If I my property being foreclosed on I should move out. Truth: There are several reasons why you should stay in the property until it is actually sold or the foreclosure is being stopped: Yes, it is true that you are not paying the mortgage, but the mortgage payments are added to your bill. Sometime in the future we will be held accountable to pay back. No point to move out and rent another place, it is like making double payments. In fact the bank prefers the property remain occupied. Vacant property has higher risk associated with it; insurance fees are higher. Vacant property is often harder to sell. If you stay and take a reasonable effort to make it look good the eventual purchase price could be higher which will benefit you directly.

Holiday Homes- Most families that earn enough to support a comfortable lifestyle desires a home away from their current home during their holiday trips and excursions, nothing beats the privacy and the sense of ownership of a holiday home. This is a privilege many are deprived of and if you happen to belong to one of those in the higher income bracket, you may choose to purchase a second home by taking on a second home mortgage. For a Family Member- This is another reason why people are opting for a second home mortgage. They may have kids going away to college and require a safe place to stay. Buying a home for your family members can be a great investment to ensure comfort and safety of your loved ones while they are away form home. This can also be a great holiday home for the rest of the members of the family during holidays and celebrations.

Time Sharing- Some people are attracted to the concept of time sharing properties. They may opt to purchase a property based on a joint venture agreement and each would take turn to live in the house and use it according got an agreed schedule. There are often too many issues involved with this arrangement such as who would be responsible to fix the damages and who is using more of the utility and responsibly to pay for the higher charges incurred during the stay. Most people would choose to steer away from such an agreement unless you are very sure you can manage. Whatever the reason, the numbers of people who are looking to get a second home mortgage continues to go up. It only stands to reason that as the economy improves, this number will continue to grow.

Learn more about Obama Making Home Affordable Mortgage Program.