Want to Avoid Foreclosure? Listen to Mom

Academic data has shown time and again how important parents are in modeling good financial habits that affect their children's adult lives. New research shows that goes for housing-related finances as well.

A story today in DailyFinance.com reports that adults who said they received a lot of parental teaching around money management as children had a lower risk of loan delinquency and foreclosure compared with those reporting little parental teaching. Adults who learned more about money from Mom and Dad also had higher credit scores and lower credit card debt.

In short, what your parents taught you as a child wasn't just "because they said so." This Mother's Day, thank your mom for not only giving you life, but teaching you how to keep a roof over your head!

More information for parents and teaching kids about money can be found at the Federal Reserve's education website and Prosperity4Kids.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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And what does any of this say about not getting foreclosed on? What a waste of time, I guess AOL decided on a heading but didn't have any content.

May 23 2011 at 12:42 AM Report abuse rate up rate down Reply

Unfortunately my parents weren't around (or maybe fortunately!) to see the mess the housing market is in today. Nor were they around to witness the tactics of some of the loan servicers, such as Wilshire Financial Services that was purchased 18 months ago by Bank of America, under the name of BAC, and which is now changing its name to Bank of America. The customer service reps at BOA are fully aware of the poor accounting procedures and payment histories of Wilshire - and have admitted as much on the phone to customers who have called them saying they need an accurate payment history. They know there is no such animal as an accurate payment history from Wilshire Financial. BOA bought this hot potato company and now they need to deal with the problems. My parents would be horrified at these types of practices - it's unlike anything ever experienced in the history of this country, and you don't have to be a bum or you don't have to be short on knowledge of how to manage your money. Although there are people who probably should never qualified for a mortgage, I agree with that, there are people who did qualify who have bene treated in a pretty shabby way.

May 15 2011 at 3:19 AM Report abuse rate up rate down Reply
Latoya Rutledge

Property sellers who want to both obtain their desired price and close on the deal quickly should consider seller financing. Seller financing is a powerful tool to remedy real estate situations that otherwise look grim.

Many home sellers (and their real estate agents) do not see seller financing as a viable option. In actuality, seller financing can bring new attention to the listing and invite a different group of potential buyers - thereby opening up a unique, untapped market.

A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation. Many of these people are still in the market to buy a house, however. The "credit-challenged" are often frustrated with the limitations of apartment living or being renters; as a result, many are willing to pay a higher price just for a chance to get seller financing and improve their quality of life.

A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bonafide seller's market. By using this type of creative financing, the seller could actually end up getting more than the original asking price - without resorting to the questionable strategy of patiently waiting for the "right buyer".

Seller finance can enable homeowners to receive a favorable selling price despite bad market conditions. In addition, the real estate agent (if any) gets to close a deal and move on to other sales, while a home buyer with poor credit is able to become a home owner. It's one of those rare situations where everyone at the negotiating table gets what they want.

May 10 2011 at 5:28 PM Report abuse rate up rate down Reply

What a waste of my time -- totally gave no info!

May 10 2011 at 2:41 PM Report abuse rate up rate down Reply