Save those papers!

Buying your first home can be one of the most stressful events in your life, and it is usually a little detail that can pop up to bite you in the rear, if you’re not prepared. For example, when your financing hinges on obtaining written proof of payment arrangements or agreements made with creditors. In the wrong hands, you may find your home purchase suddenly at risk of falling through, especially, when you are dealing with unethical debt collection agencies.

When such collection agencies discover that your financing is hinging on written proof–even if you have been making your payments on time–they can use the situation against you and demand full payment before giving you the written proof  you need to close the sale of your home.

While some collection agencies are easier to work with than others, you definitely do not want to find yourself dealing with a cut-throat collection agency or creditor when you are so close to closing on the purchase of your home. When unethical collection agencies know that they have you “over a barrel” they can make sudden unreasonable demands and endanger the purchase of your home.  In my opinion, it is a form of extortion. Give them the power, and they will take advantage of the situation. However, there is a way to prevent this unfortunate circumstance from happening to you in the first place.

SAVE YOUR PAPERS!

In these economic times, many people are having to re-organize their debt and finances. If you plan to purchase a home in the future, keep a copy of every receipt and agreement you make with your creditors. Anything and everything that could be used as proof that you are making your payments on time, or that you have paid off an account–put them all in ONE safe place. Without written proof, you are at the mercy of vultures that do NOT care about you or your family, and they will do almost anything to get more money out of you.

A Solution: An inexpensive fire-proof safe!

Before you begin taking the steps to purchase your first home, gather all of those important papers and put them into a central and secure location. By investing in a fire-proof safe and depositing everything important in there, you will be doing a lot to save yourself from the nightmare of being at the mercy of unreasonable creditors and unethical collection agencies .

For more ideas on organizing important papers, check out this article:

What Papers Should I Keep