question for the coli after financial counseling course #2

[Orange cream shake]

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.

This simply isn’t true.


I worked in the department that modified loans for people who fell behind. I would say about 40% fell behind and were at risk of foreclosure in the first two years. What you don’t realize is you can literally have 1500 dollars and buy a home with down payment assistance with a 600 credit score making 14 dollars a hour by yourself. Has nothing to do with being responsible and having a savings. In some areas it’s cheaper to rent than buying because you don’t pay for repairs and taxes.

 

[Orange cream shake]

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.

If your rent goes up you can choose not to sign the lease and move somewhere else like you mentioned with owning a home. The difference is that if you can’t sell your house that you can’t afford you not going anywhere with that debt to income ratio and if you have to short sale it or do a deed in lieu your credit is shot for years. By the way it’s more likely for a homeowners mortgage to increase than a renters rent to.

 

[UberEatsDriver]

If your rent goes up you can choose not to sign the lease and move somewhere else like you mentioned with owning a home. The difference is that if you can’t sell your house that you can’t afford you not going anywhere with that debt to income ratio and if you have to short sale it or do a deed in lieu your credit is shot for years. By the way it’s more likely for a homeowners mortgage to increase than a renters rent to.

Damn I wonder if my teacher knows you