Options when things go wrong...

Options When things Go Wrong...Presented by : Attorney Shawn Parr
This is the topic of our meeting on Thursday night - I selected this subject because of the large number of people who are calling me, asking for advice and direction on how they should handle investment properties, and primary residences, that they are up-side down in. It really is a moral dilemma as well as a financial one - should one continue to pay a $5,000 mortgage and eventually file for bankruptcy by taking the high road? Or should one walk away once they decipher that they are in over their head, and they will be ruined financially if they continue to make the payments with borrowed money or by accumulating additional debt.

These are difficult situations to navigate and every circumstance is different and has it own special nuances. For me it really highlights how tenuous real estate investing is - when it is good it is very, very good but when it is bad it is horrid! A couple of years ago novice investors were making $100k with very little effort or strategy involved - those days are gone and real estate is not the hot topic it once was with people bragging about the huge equity gains in short periods or time.

The current market is confounding - financial markets gone awry, gas prices skyrocketing, the economy slowing down, and real estate inventories climbing at a pretty rapid pace, yet multiple offers are common and houses are certainly not being given away by the banks. But hang in there our day is coming - for those with cash give it 12-24 months and opportunities will present themselves, and those who have educated themselves and are poised to act will be able to create some nice gains and long-term wealth with good solid investments. Having patience is the difficult part right now...