“Not Having a Mortgage Really Hurts, Tax wise”
So many, for one reason or another have had to rent. Many used to be homeowners but as a result of a bankruptcy, foreclosure, deed in lieu of foreclosure or short sale they had no choice but to rent and many are desperately working toward homeownership again.
I have done a number of blogs on this topic and got an email from a client in Nashua NH that wants or needs to become a homeowner again. The sentence below tells her mission…
I can’t rent anymore and my salary without a mortgage write-off is going to KILL ME. Please advise.
Unfortunately she did not get good coaching as to how to repair credit. Many of her collection accounts have been sold from one company to another. She thought they would just go away, not the case at all. After spending some time reviewing her credit and explaining what she needs to do, she said she sees light at the end of the tunnel.
Many just put their heads in the sand hoping the nightmare will go away, it doesn’t and it takes work. If you put in the work that is necessary, home ownership can become reality.
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
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Good Tuesday morning Joe. I can understand. We are one of the few in the nation that does not have a mortgage.
Oh yes, that tax write off has a huge impact. I can't imagine losing that. I'm sure your coaching helped and soon enough she will be able to own again.
Good morning Joe. Given current tax laws, some do not benefit from the mortgage write-off. Regardless, keeping a clean credit rating is imperative! Enjoy your day!
Good morning Joe. With what income I make being without a mortgage would not hurt me a lot.
Hi Joe. With your help and coaching, she will be a home owner once again.
It's something I think about from time to time, but honestly think renting is right for me Joe.
Good morning Joe,
Not everyone can be a great teacher such as yourself; keep up the good work.
Make yourself a great day.
Good morning Joe. The head in the sand approach seldom works. You are a good supporter and I'm sure this client appreciates it.
Yes....we have a number of buyers with very good six figure incomes, great credit scores that are now first time buyer..Hooray
Good Morning Joe: Very true. My friend can't write off anything because he does not have a mortgage--which is one of the great benefits of it.
Unfortunately, he has to wait 3 more years to be able to get one.
Joe, great advice, and hope you are able to get this buyer into a home, and save some money on taxes!
Home ownership certainly provides major tax benefits and that is why home ownership is one of the best ways to build family wealth.
I am a huge believer in owning real estate not only our principal residence but rental property too. You make an excellent point here, Joe.
Helping others in your business, as well as mine, is such an important part of sharing and giving back, Joe...kudos to you.
Good for her to dig herself out and having a well paying job. This is such an excellent lesson that this is not enough. It's worth it to get that credit up as well and not only in buying a home. In this day and age, paying for cash actually loses you money, at least tax wise, as in her case.
Joe,
Glad to hear that you are giving her such great guidance. A
Joe - without the mortgage write off the income will not go as far. Glad you get people back.
That mortgage interest wrie off is huge! I remind my buyers of this when they are trying to justify the mortgage payment. Glad you helped her see the light.
Hiding from obligations never works in finance or other ventures. Buyers need to be helped sometimes to regain their confidence and face up to their situation. Once confronted, old problems can be overcome and lead to a better path forward.
Anybody can turn her life around and clean up her credit. It takes work and diligence, but once you do it, you never want to go back, I hear. Good for this client to realize she needs to do something and stop the destructive behavior that got her into the mess to start with.
But what I want to know is, Joe, is what in the world were you guys doing in Biloxi with Conrad, his wife and Sally and David?
Joe: I am always surprised to hear some consumers think their issues can go away by just ignoring them. Good to hear you now have this future buyer pointed in the right direction.
Joe as you well know wishful thinking does not make the collections and other credit issues go away. I takes good advice and hard work for that to happen.
Every one thinks they know how to improve their credit, until they go apply for a mortgage and find out differently. Good think she found your post and called you!
That is a sad story Joe, you provide some interesting scenarios.
Joe
Thanks for sharing your insight on rebuilding your credit score.
Good luck and success.
Lou Ludwig
Hello Joe. Just taking a few minutes while waiting in line, and thought I would drop in. I share your desire to help those who have run head long in LIFE. Some are quick to pass judgment on folks with derogatory credit. Years ago I had a loan processor with perfect credit, and everything going her way. She was very condescending toward applicants who had dings on their credit, and one day a client called me: she was crying, and I had difficulty understanding her, but learned that Ms. Perfect Credit had told her that she did not deserve a loan because she had not honored her commitments. I cautioned the processor that someday that could be her, and she needed to mend her ways. We got the applicant's loan through (her referrals led to over a dozen new loans in subsequent months and years).
A few years later the processor's world crumbled beneath her: alcohol and drugs. She lost her home, her job and her reputation. I have since lost contact, but my efforts could not overcome her addictions. "As you would that men should do unto you, do likewise unto them.". Jesus had it right all along. Hopefully, someday the processor will hear him.