As home prices have plummeted many people who have bought homes in the past few years are scared, confused, and don’t have any idea of what to do. There are many people looking for an opportunity to buy but they are just not sure when is the right time to jump into the market. And there are many people with adjustable rate mortgages and negative amortization loans whose payments are going higher, they want to keep their homes but they are not sure how they are going to manage. I wish there was a simple answer but unfortunately everyone’s situation is different and what may be right for you, may not be right for your neighbor. However, I have some suggestions and tips that you might find valuable in these uncertain times.

1.) If you are looking for a home to buy and your time horizon for living in the home is more than five years, now may be the perfect time to buy. For those looking to live in a house long term, raise a family, this may be a great opportunity. I am not saying you are buying the bottom of the market, but nobody can ever predict when we have reached a low point, but if your planning on staying in the house more than five years I feel confident you are making a good investment. If you are a buyer, the struggles of others is an opportunity for you, foreclosures and people desperate to sell mean bargains are to be had. If you have a family this gives you the opportunity to find homes in great neighborhoods with outstanding school districts and great communities. There are many once in a lifetime opportunities available, the value in the short run may go down but we are far closer to the bottom to the top. But take your time, do your homework, find the right home for you and your family, and if you find it and can afford it, jump right in.

2.) For homeowners who owe more money on their home than it is worth, this is a very difficult time. Many people feel that paying a mortgage when a home is worth less than you owe is simply throwing good money after bad. I understand those feelings, but again each situation is different. First, and most importantly can you afford the payments, if you can’t then there really is no choice is there? However, if you can afford the payments or you are struggling there are options to consider. First, by walking away from your mortgage payment you will destroy your credit, making it difficult to buy anything on credit for many many years, and extremely difficult to ever buy another house. Also, if you walk away you still have to live somewhere, after tax benefits will it be that much cheaper to rent another home or apartment then it is to stay in your current home?. It is important to consider what you give up when you give up your home and lose your credit, there is both financial and emotional damage. And of course it matters how much equity have you lost in your home, some areas have lost far more value than others, some may never come back, others may recover more quickly.

3.) I believe there is some help on the way from the banks and federal government. If you have been making your payments but have been struggling, or making your payments but are “underwater” on the value of your home there may be relief coming in the near future. There is a good chance that banks will adjust interest rates lower to make payments more affordable, some may even lower mortgage balances to help borrowers make their payments. If you are not desperate and can afford your mortgage a little while longer I would try to hold on until the help arrives, it may be the difference between keeping your home and credit, or losing both. If possible just try and hang on a little longer. The next year will be difficult for struggling homeowners, but try to remember why you bought your home, or are looking to buy a home. Home ownership has historically been a great investment, and it will be again! But most people don’t buy homes as an investment, they buy them to raise families, create memories, and live a life. If your looking for a home, find the right one and feel good moving into it. If you own a home and your struggling, try to find a way to keep it. As I said I think some help is coming and better times are ahead.