A recent visit with a Kitchener Waterloo home owner struggling to pay the bills was a real eye-opener.
I had helped this Baby Boomer couple buy their first home in 1995 for $100,000. Eighteen years later, they're still there and are happy in the home. However, instead of owning a paid for or nearly paid for home, the client shared that they were out of refinance options and needed money to pay out household debt.
Sadly, as they answered my questions, it became apparent that these folks are "serial refinancers". Whenever the bills piled up, they stripped out their home equity to pay them off. Unfortunately, they have now refinanced to the maximum limit of 80% plus a second mortgage and the bills are mounting. To make matters worse, he wants to retire and she is already retired.
So what was my advice? At their age, their options are limited. I recommended to sell their home, pay out their bills for debt relief and downsize to an affordable rental. If that sounds harsh, consider their other option: prepare for the day the sheriff comes knocking as the mortgagee exercises their power of sale rights.
Regular readers of this Kitchener Waterloo real estate blog will know that every situation is different. If you are a Kitchener Waterloo home owner struggling to pay the bills, feel free to call, text or email for no-nonsense advice on your particular situation 519-505-4488 firstname.lastname@example.org.