Personal Finance Expert Joe Aldeguer Says Foreclosure and Bankruptcy Not a Lifelong Situation

Joe Aldeguer

According to Joe Aldeguer, it’s no secret that the housing market collapse in 2008 has affected hundreds of thousands of homeowners across the United States. Many homeowners are facing foreclosure and feel as though their lives are in a perpetual state of limbo. It can be very intimidating to face foreclosure, as homeowners know that their credit scores are negatively affected and credit availability may become a thing of the past, reports Joe Aldeguer.

While many homeowners will have limited housing options after foreclosure, Joe Aldeguer notes that there is hope for all, if you have a plan. He maintains that it is possible to reestablish credit to the point of being able to buy a new house, save money, and pay off other debt–all while living in the current home. According to Joe Aldeguer, he has seen many homeowners in the foreclosure process take up to four years or longer – roughly the same amount of time it takes to begin the credit rebuilding process under certain circumstances. You should call an attorney for advice. Joe Aldeguer notes that each case is different.

According to Joe Aldeguer, a chapter 7 bankruptcy filing is a viable option for some homeowners facing foreclosure. By ensuring a formal change of title, many homeowners can simply walk away knowing that they may qualify for an FHA loan in as little as three years. To qualify for an FHA loan, an individual has to meet the financial requirements of job history and reestablished credit requirements, says Aldeguer. During this time, adds Joe Aldeguer, the homeowner can choose to stop paying the monthly mortgage, as well as the property tax bill. Joe Aldeguer says that this is the perfect time to open up a savings account, pay down other debt, or get into a financial position to put a down payment on a new home. Often, the bank will press the homeowner to vacate the home immediately. At this point, Joe Aldeguer recommends consulting with an experienced bankruptcy and foreclosure attorney for advice as they can possibly prolong your stay and length of time in the home.

By having a plan in place, and strategically allowing the property to go into foreclosure while filing bankruptcy proceedings, a family can take the time to wipe their financial slate clean and actually start saving money, points out Joe Aldeguer. There is a huge relief for families and home-owners that there are options that they never would have thought of. There is no shame in admitting that once a home has been devalued to a certain point, it becomes an absolute financial liability and not the asset it once was, notes Joe Aldeguer. Unfortunately, many people fear a marred credit report so much they would let their families suffer. It doesn’t have to be that way. Joe Aldeguer insists that weathering a personal financial storm over the course of a few years is far more sensible than fighting for a home that may have lost as much as half its original value.

Between Joe Aldeguer’s strong financial background and his ownership of one of the largest lending mortgage companies, Aldeguer and the attorneys he works with have developed a practical strategy that makes financial sense in making the transition of making lemonade out of lemons.