Things do happen. An unexpected job loss, unable to pay your property taxes, or extending your credit cards and maxing them out can create havoc in the financial lives of even the most conscientious and conservative homeowners. When you’re already overextended, things go downhill in a hurry. You end up saying to yourself: “I’m concerned I’m losing my house.” Instead of panicking or burying your head in the sand, it’s a better idea to sit down, assess what went wrong, and weigh your options.

Common Reasons Individuals Get into Serious Financial Situations

  1. Purchasing items on credit, or maxing out current credit cards. Credit cards are easy to get. They also make racking up a debt a whole lot easier, too. It’s tempting to buy something you really can’t afford now, instead of slowly saving for it. If all you can make are the minimum payments and with some credit cards reaching 30% or more, you may never pay off what you owe.
  1. Withdrawing money early from your retirement fund. A lot of people think of their retirement funds as their ace in the hole if they get into a money crunch. That’s not necessarily the case. Depending on your age and the type of retirement fund you’ve got, you’ll have to pay hefty income taxes and penalties on the money you withdraw prior to retirement.
  1. Letting debt go into collection. This is one of the fastest ways to ruin your credit. Collections can stay on your credit report for 7 years and can prevent you from getting a loan, opening a credit card, opening a simple bank account, or worst yet, gaining employment. 
  1. Buying more house than you can afford. A house is an investment. It’s reasonable to assume it will increase in value over time and become a valuable asset. The mistake many Americans make is assuming they can handle a mortgage at the highest possible debt to income ratio they qualify for. That leaves them with no cushion when the unexpected happens. Chances are, that it will.
  1. Unable to pay your property taxes. We see it more often today. You take on a mortgage for your home and because you want to keep your mortgage payment lower, you chose to opt out to have the bank collect property taxes on your monthly payments. Then when the tax bill comes out, you don’t have the money to pay. If the taxes aren’t paid you run the risk of losing your home to a tax sale. 

Warning Signs That You May Be Headed for a Financial Meltdown

  1. You can’t manage your credit card debt. Example: You are only making the minimum payments each month. Your late payments are racking up penalties and interest.
  1. You’re using credit cards to pay for essentials. Example: You’re putting groceries on your credit card. You’re using your credit cards to get cash.
  1. You’re avoiding the IRS. Example: You owe money when tax time rolls around and because you know you’re going to owe money, you file extensions.. You throw away the notices you get from the IRS without opening them. You assume the IRS won’t really seize your assets, or put a property tax lien on your house.
  1. You’ve either missed a house payment, or you’re afraid you’re going to. Example: You know your lender won’t foreclose after 1 or 2 missed payments, so you figure you’ll catch up in a month or two. You ignore the notices you get from the lender.

Foreclosure is not a foregone conclusion for homeowners in times of crisis. There are options that allow you to get the cash you need to pay down debt and get back on your feet.

Financing Options – The Good, The Bad and the Risky

Home Equity Loan. This is essentially a second mortgage. You get a sum of money based on the equity in your home. You make monthly payments on this loan in addition to your regular first mortgage payments.

The Problem With Home Equity Loans

  • If you are already in trouble financially when you apply for a home equity loan. You may be turned down altogether or have to pay a higher rate of interest to counter the risk the lender is taking.
  • You’re using your house as collateral. If you default on your loan, the lender can foreclose on your home. You’ll lose your property and your credit will be ruined.
  • If you’re already having trouble making payments on your first mortgage, what makes you think you can make the additional payments on a second one?

Home Equity Lines of Credit (HELOC). HELOCs are like credit cards. You withdraw money as you need it. You have monthly payments (with interest), but they are lower than home equity loan payments. You can draw on the line of credit for 10 years before repayment.

The Problem With Home Equity Lines of Credit

  • Interest rates are variable. If the rates go up, your payments go up.
  • As with home equity loans, your house is the collateral. If you default you’ll be facing foreclosure.

What makes SKYDAN Equity Partners a better and safer home equity loan alternative?

  1. You don’t have to worry that you will be turned down for our sale and leaseback program because you have bad credit, no credit, are out of work, unable to work, or owe back taxes.
  1. You don’t have to worry about adding monthly payments to your already burdened debt load.
  1. You don’t have to worry about incurring interest and penalties.
  1. You don’t have to worry about losing your house to foreclosure and destroying your credit.
  1. You get tax lien relief help.
  1. You get the cash you need quickly without the red tape and lengthy turn around time you face with banks, mortgage companies, and other lenders.
  1. You get time to take a break from the financial stresses, take a breather and work on getting your credit restored.

SKYDAN offers you the chance to turn the equity in your home into the peace of mind you’re seeking. We’ll partner with you on your home while to take advantage of our Sale and Leaseback Program. You have No Monthly Payments during the term and the rent is deferred on the back end.

This program gives you the breathing room you need to get back on your feet financially. It allows you to pay off your current mortgage, along with other financial burdens you may be facing. Our program can go as long as 2 years, which will allow you to work on your finances and restore your credit. At the end of the term, you have the option of buying your house back (the original price plus deferred rent), or selling it and putting the profit in your pocket (minus what you owe Skydan).

The process is quick and easy.

  • Fill out the application.
  • We’ll set up a home visit within 2 to 3 days
  • We’ll evaluate your property and your situation, then determine a term that best fits you within 3 to 5  days
  • In most cases, we can close within 30 days and your stress free life can begin.

If you live in the Chicago, Illinois area ( DuPage County, Lake County, Kane County, Kendall County, Will County, Cook County) give us a call today. We’ll change that anxious thought of “I’m concerned I might lose my house” into a new beginning and a more secure financial future for you and possibly your family.