House poor is a condition for a person when he or she spends a large amount of their income on house ownership like mortgage payments, house or property taxes, utilities and bills and are left with little money to spend on other necessary things. Here are some tips on what to do when you are house poor according to experts of buying a house in foreclosure.
1. Refinance Mortgage Loans
The first you need to do when you are house poor is to rethink and refinance the mortgage loans. You need to think about the plans for mortgage with low interest rates and lower monthly payment. The purpose is to spend less on house loans so that you are left with more cash. If your house is near foreclosure, you can search for companies that make buying a house in foreclosure easy.
2. Ask the Landlord for a Break
People who live in big houses or apartments, lowering rents may be hard for them. But if you have a house on rent, it is may be a good idea to ask the landlord for a break. You can also convince them to reduce the rents for some time in order that you get out of the house poor situation.
3. Rent out One of Your Rooms
This is another good idea to make more money, adjust your loans and set the monthly expenses. Find out which room in your house can be rented and what amount it will let you get extra. The room rent will be a sort of extra income that can help you manage your house in a better and easier way.
4. Cut down Monthly Expenses
With all this, the most important thing is to trim your monthly expenses. You know there are things where everyone spends more than needed. Few other things need to be stopped spending on. Such steps are crucial for the person who is house poor otherwise you can’t manage the loans and house expenses.
5. Look for Other Work
If you don’t have a job, you must do one. A job will help you get more money, manage the house in a better way and pay the loans as well as bills. If you already have one job, try to look for options on how you can generate some extra income with a part-time job for a short time period until the things are fine.
6. Reset Your Monthly Budget
An idiot with a plan can defeat a genius without a plan. If you have no budget plan, make the one. If you already have done, reset it and make changes to adjust it according to the current house poor situation.
7. Find Cheaper Housing
If you see nothing has worked in your favor, it is time to sell your house to cash home buyers and find more affordable housing. You will have to shift to other areas but you should compromise on this. You can also think of buying foreclosed homes in DFW area. They are cheaper.
8. Make Smart Choices in Life
With all this, you need to make smart choices in life. Whether it is about selling something, buying new things or whatever- smart choices can save you, spend where it is necessary and try to save as much as you can.