question for the coli after financial counseling course #2

[ThaBronxBully]

If You’re Living Check To Check As A Home Owner You’ve Put Yourself In A Bad Position And Either Bought Too Much House Or You Weren’t Ready To Own

 

[Orange cream shake]

I bet there is a strong likelihood that renters are more often living paycheck than home owners though. Your scenario is a very specific one that frankly probably defies common financial trends in the nation at large. Simply because buying a home usually requires a better credit rating than renting and people with better credit often tend to be more stable financially than people with bad credit. also people living paycheck to paycheck aren't usually the ones buying houses.

You can buy a house with a 580 credit score.you just have to appear on paper to be able to afford the loan amount.

 

[posterchild336]

Savings check to check can change if you make more and spend less but it's not s good situation... It all matters a mortgage payer can downsize have serious equity and sell the house they are paying mortgage on and walk away with hundreds of thousands and rent or downsize and have money to invest and play with so you have to think about things like this.. If that's the situation I would downsize and walk away with 6 digits

 

[Luke Cage]

You can buy a house with a 580 credit score.you just have to appear on paper to be able to afford the loan amount.

i'm not saying this applies to 100% of all people. i'm just saying it's more likely the homeowner has 10K saved and the renter is living paycheck to paycheck than the other way around. I feel like it would be stupid to buy house if you are one bad transmission away from getting foreclosed on.

 

[UberEatsDriver]

I bet there is a strong likelihood that renters are more often living paycheck than home owners though. Your scenario is a very specific one that frankly probably defies common financial trends in the nation at large. Simply because buying a home usually requires a better credit rating than renting and people with better credit often tend to be more stable financially than people with bad credit. also people living paycheck to paycheck aren't usually the ones buying houses.

I don’t want know what the numbers are but there are many renters out there who have large emergency savings and also choose to invest in other in things that can make their money appreciate.

I used to do real estate and know for a fact that I worked with people who purchased homes and didn’t have any other investments to their names or a large emergency savings fund.

 

[Shoog Shatmi]

How much equity in the house?

 

[UberEatsDriver]

i'm not saying this applies to 100% of all people. i'm just saying it's more likely the homeowner has 10K saved and the renter is living paycheck to paycheck than the other way around. I feel like it would be stupid to buy house if you are one bad transmission away from getting foreclosed on.

Foreclosure rates are a problem in America aren’t they? Especially for us black folks?

 

[Roadside]

Anybody who would choose living check to check with a house over having 10k liquid renting is a dumbass. Point Blank Period

Depends I think?
If the house is now appreciated significantly you can sell up and get way more than 10K to then rent or buy a new place that is more within your means.

 

[UberEatsDriver]

If You’re Living Check To Check As A Home Owner You’ve Put Yourself In A Bad Position And Either Bought Too Much House Or You Weren’t Ready To Own

Like @Orange cream shake said some people don’t know to do this.

They see their name attached to a loan amount and run to it.

Reminds me of people who buy cars and take the loan agreement that is offered to them by their credit and then end up complaining later that they hate paying their “large” car note each month.

 

[Silkk]

Depends I think?
If the house is now appreciated significantly you can sell up and get way more than 10K to then rent or buy a new place that is more within your means.

How long do you think it takes to sell a house?

 

[UberEatsDriver]

Depends I think?
If the house is now appreciated significantly you can sell up and get way more than 10K to then rent or buy a new place that is more within your means.

The professor brought this up also. But that’s a big if.

She also said that people who have this high expectation of appreciation but move into communities that offer subpar amenities such as a bad or moderate school district are not too bright.

She said if you want to trust the appreciation of your house then you should do big time research on where exactly you are moving to.

Honestly speaking I have spoken to and seen a few people who were more impressed to buy a house because of the price moreso than researching the exact area the house is located in.

 

[YaFingerDealMe]

I was a mortgage owner living check to check but I was spending money on the wrong shyt, I think it just comes down to budgeting

 

[Luke Cage]

Foreclosure rates are a problem in America aren’t they? Especially for us black folks?

What ?

 

[UberEatsDriver]

What ?

I’m replying to your comment about people renting who live check to check.

Isn’t foreclosure a big issue in America? Especially for minorities?

 

[mannyrs13]

Depends on the area I would say. And also how much the renters debt to income ratio is. Rent could go up at anytime. Lets say its 1700 and gets raised to 2k a month and they only bringing in 1800, so that makes them have to dip into their savings to survive. Also depends on the value of the house and housing market. Homeowner could sell the house and move to another area at a cheaper price or just rent instead until they get past paycheck to paycheck.