Get out of debt and get rid of the credit cards! Pay them off. Dennis Dahlberg is Level 4 Funding’s General Manager Hard Money Lender and he predicts inflation is making a come back. He stresses to make purchases, but only if you have the cash. Do not get into any debt! And if you are in debt, start trying to make your way out.
However, don’t start to think that one way of getting out of debt is to let your house go. Have you considered Mortgage modification such as HAPR 2? It’s possible! Try it out.
If you let the bank foreclose and you do ‘bail out,’ remember that you will not be able to purchase a home for 5-7 years, maybe even never again because inflation will come back.
That means that the value of the dollar will and will drop and it will drop dramatically. This could this change maybe… like maybe if America chooses to cut spending and raise taxes, cut medical/social security, and increase the tax rate by 45%? But Dahlberg doesn’t think this will happen. Instead, Dahlberg the amount of debt in the USA will continue to grow. He believes you should hang on to your house if you can. Otherwise, in 5-7 years, you can see the cost of bread rise to $10, Gasoline to $25/gallon, and the average starter home price will be $600,000.
Dahlberg also encourages people to start a side business for the potential tax advantage and the possible income it could provide. He explains that your own side business is the LAST area the government has yet to attack. Make it simple and get going. An extra $400 per month really helps.
Dahlberg says he has spoken to a lot of people who feel that they can ‘let their home go and rent for awhile’. Why not, they say, as rental rates are lower than their mortgage rates. ‘We can save a lot of money by renting vs. paying the mortgage, and in 2 years we can purchase again and have a good down payment.’ You might say.
Maybe. But as we said before, it’s actually going to be 5-7 years before your credit report looks good enough to purchase a home again. And can you really save the money? Most people will spend the money on silly things. If hyper-inflation hits, like some economists predict, then you’ll be priced out of the market. Do you want to take the chance? Keep your home, do a HARP 2 Mortgage modification, and hang on – the next 5-7 years are going to be enjoyable.
Dennis Dahlberg is General Manager of Level 4 Funding, with many years of flipping and fixing real estate experience. He knows what he’s talking about.