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Alternative Housing Options for Financially Distressed Homeowners

Alternative Housing Options for Financially Distressed Homeowners

Not everyone has the financial means to choose the most comfortable housing options. Despite the improved state of the real estate scene, not all homebuyers are having a good time finding a budget-friendly home. Financially distressed homeowners and those who are facing underwater mortgages along with other financial problems are having a challenging time finding housing options which meet their budget.

The housing “crunch” experienced by financially distressed homeowners are caused by several factors which include but are not limited to:

  • Slow job growth rates and unstable employment
  • Skyrocketing rent prices
  • Low vacancy rates
  • Higher home prices
  • Utility bill increases
  • Damaged credit history
  • Not enough savings

There are times when homeowners can find housing options, but when the time for lease renewal comes, the process of keeping a home becomes more difficult. Options for housing become even more limited for those who are financially distressed because certain communities try as much as they can to exclude those who do not have good credit histories.

A lot would already know how buying a home can be much cheaper, but not every homeowner can get enough credits from their chosen banks nor have the savings to buy a home. Sometimes, even those who currently have great incomes may face hindrances in the home buying process because of financial misdemeanors in the past, low credit scores, or even unpaid school loans.

For those who need places to stay, here are some alternative housing options to try:

  • Extended hotel stays – There may be hotels or affordable inns whose total charge would be cheaper than renting a house.
  • Renting a small apartment – Something very basic won’t hurt the budget. Stick to a single bedroom and an overall smaller space.
  • Building your own house – A small house can cost much less than buying one which is already made. You can control the materials used as well.
  • Owner financed homes – You won’t have to think about downpayments when you go for this option.
  • Occupying distressed homes – You can try finding distressed homes and rent it instead. Making it livable is possible until you find a better setup.
  • Living in an RV – An RV can be a cheap alternative if you cannot own a home. The space may seem cramped, but if you can buy an RV and call it your own, you can turn this small space into your own private sanctuary.
  • Looking around for co-op homes – There are places which offer co-op living spaces where you can pay a substantially low amount to have a place to stay. You won’t own the space you are paying for, but this is better than having no place to stay at all.

Other things to do which can help you out include:

  • Having a paper trail of your home-related transactions
  • Hiring an attorney who can help you with your credit scores
  • Creating a savings plan
  • Looking around for downpayment assistance programs
  • Looking for additional sources of income

Consider these housing alternatives and you will be able to find a place to call your own without worrying too much about the costs!

 

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