Chicago financial advisor Joe Aldeguer was recently asked by Presentation Solutions what consumers can do to keep their heads afloat amid the new economic issues facing Americans today.
Presentation Solutions: Thank you, Joe Aldeguer for taking the time to speak with us today about such an important issue.
Joe Aldeguer: Absolutely my pleasure. I’m always ready to talk finances!
Presentation Solutions: So, tell us. With the housing market declining, is your office in Chicago seeing new trends among homeowners?
Joe Aldeguer: Great question. Yes, we are seeing that consumers are more open to opt for a strategic default than they were just 5 years ago.
Presentation Solutions: Exactly what does that mean?
Joe Aldeguer: Very simply put, many Chicago residents are upside down in their houses. They are learning that it may be best to walk away from the loan, cut their losses, and start fresh.
Presentation Solutions: So what you are saying is that they are actually allowing a foreclosure?
Joe Aldeguer: Usually that is the end result. People are seeing that the banks stuck them with these defective loans that they [the bank] knew were far more than the property’s actual worth.
Presentation Solutions: Houses were valued much higher than ever before there for a while.
Joe Aldeguer: Yes, they were. People were almost scared not to buy, and lenders got careless.
Presentation Solutions: True, but how do your clients feel when you suggest foreclosure?
Joe Aldeguer: It used to be a very awkward conversation. People were ashamed and embarrassed. We are seeing now that the house values in Chicago should never have gotten so high. People are accepting that it isn’t their fault.
Presentation Solutions: As with most of life’s trials, acceptance is the hardest part.
Joe Aldeguer: You said it! People are seeing their houses for what they really are now: a material possession. Letting it go is really like giving up any object.
Presentation Solutions: Yes, but there are so many emotional issues involved.
Joe Aldeguer: We are certainly sympathetic to that, but when their backs are against the wall, coming to the understanding that defaulting is a business decision helps.
Presentation Solutions: Regarding your Chicago area client base, Joe Aldeguer, do they view it as a business decision?
Joe Aldeguer: It certainly takes some getting used to, but I’ve found that people are much more open to wiping the slate clean and starting brand new. I try not to say they are losing their home because it is true that a house is not a home.
Presentation Solutions: Isn’t it much harder to re-qualify for a new home loan later after a foreclosure?
Joe Aldeguer: Well, it is likely that the individual won’t be able to buy a house the next day, but there are ways to get an FHA loan in as little as a year after the process is complete.
Presentation Solutions: Sounds like you guys help people really take charge.
Joe Aldeguer: We are a solutions oriented company and believe that action is the best way to change for sure!