Recent news of ex-homeowners eligible to receive up to $125k in compensation for unlawful foreclosures plus lost equity has many excited about the hopes of a big check on the way. So how should you spend yours?
If you were a victim of an illegal foreclosure and could be the recipient of a significant amount of cash coming what’s the best thing to do with it in the current market?
For some this will be a great deal of money, for others it won’t be anywhere near compensation enough for the home lost and mental damage done. Still, no one should go out spending any extra until funds are actually received in hand and it definitely shouldn’t be wasted.
Despite being burned, buying a new home is still likely at the top of the list of best moves you can make. Don’t let anyone else steal your dreams or chance at future financial security.
You could:
a. Pay all cash for a new home and avoid risk of defaulting on a home loan and even get a lot more for your money today.
b. Put a smaller down payment on a home with owner financing and keep the rest stashed.
c. Buy something cheaper and diversify your money by investing into a rental property or two so that your additional income can help you retire sooner, while continuing to grow your nest egg.
Just because you were done wrong doesn’t mean that real estate investing isn’t your best option for wealth building and generating passive income. Though no one would blame you for not going anywhere near your old bank with your savings or ever taking a loan from them again. Just don’t let that anger or disappointment distort your thinking and jeopardize your future.
