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Nash Law Firm
House With Equity/House Without Equity
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In today's troubled economy everyone
is concerned about how it may affect them. Central to everyone's concerns are their home. What if they lose income
and can't afford their mortgage payment? What if they have to sell because of an unexpected event - a divorce, an illness
or a job transfer. We believe that everyone needs to have a plan that centers around their home that has contingencies
for the unexpected. We call it the "Plan". Unfortunately, since so many things affect and are affected by your home situation, there are many scenario's
that you must be prepared for that involve a number of different professionals. It can be confusing and intimidating
to even attempt to understand all of the various possibilities and who you need to consult with to adequately protect yourself,
your home and your family. We can help you create your "Plan" so that you can best protect yourself, secure your home or have a plan
to recover what you have lost. To
understand what a Plan involves you must first
understand the principles behind it. We believe there are three basic levels - Basic, Savings and Risk. You must
first build a strong base that includes your home. At this basic level we are focused on protecting your home and family
from the expected and unexpected risks that threaten us. You must then go to the next level which is the Savings Level
where the focus is on creating savings (either by investment r by lowering expenses) which is or can easily be converted to
cash in times of need. There is a low level of risk at this level and not a great potential for gain but there is a
low level of risk and a strong Savings Level creates another level of protection for your Base Level. Finally you can
start investing at the Risk Level where there is a potential for great gain but also the potential for great loss. The
wealth you accumulate at this level tend to be less liquid than at the savings level. To illustrate the various levels and the professionals that can help create
a balanced Plan, see the "Asset Building Block" web page. Many people have found that their pyramid is inverted.
They neglected to build a strong Base Level, have very little at the Savings Level and a majoity of their investments are
at the Risk Level. In addition, they treated their home as a Risk Level investment to acquire potential wealth at greater
risk instead of at the Basic level where they would have instead focused on the protection of their home. Since they
have little at the Savings Level to help protect their Base Level, they are stuck looking to their Risk Level investments.
Unfortunately, all of their Risk Level investments are dropping significantly in value and can be difficult to convert to
cash. As result of all of the above, they are facing the
real possibility of losing their home. Facing a foreclosure, realizing that you made choices that left you vulnerable it is easy to become paralyzed
by fear and depression. However, now is not the time to blame yourself. While you cannot go back and undue what has
been done, you do have options and must make sure that you do not make that same mistakes that got you in this spot.
Whether your home can be saved or not, you have to have a plan to move forward and create that strong Base and Savings Level
so that you never have to go through this again. Doing nothing is the worst choice you can make at this time. As time goes on you rapidly begin losing
options. Instead of just reacting to every economic roadblock that is thrown in your way, take charge of your economic
future. While you cannot stop every unexpected economic blow, you can have a plan in place to attempt to avoid certain
economic blows, to put you in a better position to absorb the economic blow and a plan of action to best deal with the consequences
of the economic uncertainties while you still have options. The Plan is your first step forward. To schedule an appointment or for additional information call Lisa Hansen at 763.862.6100 or
e-mail us at nash@nashandlodge.com. In most cases, we will be able to quote you a flat fee for your Plan.
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