Tuesday, March 6, 2012

One way to never lose your home

The easiest way to "Potentially" never lose your home is to pay cash for the land and then never ever put a mortgage on in for ANY reason and then you and your family build the house yourselves OR pay cash for a motor home, trailer or double wide that you install or have installed on your land also for cash. If you choose to build a house for yourself be sure the local building codes in your county or country allow you to do this legally. Otherwise, they will Red Tag whatever you build or install and you will be forced to tear it down or to move or drive it off your property. But if you follow the rules and get the necessary permits to build or install whatever you are going to, and you pay your property taxes ongoing into perpetuity there is no reason to ever lose your home. Another way to protect your home in some states is to Homestead it. By doing this it makes it very difficult for anyone to take away your home for any reason unless it is for something like a freeway bypass or new aqueduct or bridge or something like that. However, be careful with this homesteading because I think legally you are only allowed to do this once in your lifetime for one property. So, in these ways it is possible to never lose your home once you buy the land for cash and build or install whatever you want to live in legally without ever getting any kind of mortgage on your home or property.

So, unless you are very or fairly rich, the more expensive a property you buy the more likely you will be forced to get a mortgage, the more likely you will find yourself losing all the money you put down on it as well as the home and the property itself and if this happens most of the time you will be forced by law and circumstance into a Chapter 13 or a Chapter 7 Bankruptcy. And all of the time with a Chapter 7 you will likely lose your land and maybe even your car as well. But with a Chapter 13 Bankruptcy a person usually has to have an income and so often the car, the land and even the house can be saved if the person has enough of an income. In Chapter 13 usually you are paying back 10 cents to 20 cents on the dollar of all your debts over around a 5 year period of time and this includes payments to your bankruptcy lawyer.

Note: Because the economic downturn in the U.S. , Europe and most of the world has been so long (2007 or 2008 until 2012) with very little letup nationwide, there has never been a time that I can remember like this in my lifetime when unemployment keeps slowly dropping right along with the values of most housing nationwide. So, even if you buy property for cash you have to expect the property and whatever you build or bring onto it to lose value. So then, at least in the short term you purpose is to own your own home so you and your spouse and your kids always have a place to live no matter what happens in the world ongoing. But the  monetary value of the home and  property cannot be the most important thing (at least in the short run of the next 10 years or so).

Much Later note: I was thinking that in the end not losing your land is the whole thing. So, even if you lost your motor home or trailer or doublewide mobile home you still wouldn't lose your land if you had paid cash for it and kept paying the taxes on the land ongoing and kept up your utility payments as long as you had them connected of water, power, natural gas and the like. As long as you own the land because it is paid for and you pay the taxes on that land you will ALWAYS have that land to come back to and you will never be homeless.

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