Approximately 65% of Americans own a home, a number that has shown some fluctuation over time but stayed fairly constant despite economic downturns, rate changes and home prices. As one of the biggest purchases most individuals will ever make, it can be anxiety-inducing, to say the least. And even after you’ve purchased a home, you may find yourself facing the possibility of losing your home due to job loss or other issues.
We sat down with Sean Bigley, security clearance attorney with Bigley-Ranish, to discuss home ownership issues for security clearance holders.
- 2:15 – Losing your clearance when you can’t make the mortgage.
- 3:50 – Questions to ask yourself before you buy a home.
- 6:00 – Options if you can’t pay your mortgage.
- 7:30 – Buying a vacation home overseas.
One of the hottest topics affecting home owners today may be inflation – home prices and interest rates are skyrocketing. In many cases it’s hard to afford a home. If you do, you may be paying prices markedly higher than what you’d prefer – particularly in hot clearance markets like D.C., Maryland, and Virginia. Those higher prices mean many are wondering if the bubble could burst – and if so, what that might mean for a clearance.
“After the 2008, 2009, bubble burst we were absolutely deluged with cases of people having their security clearance denied or revoked because they were underwater on their home,” said Bigley. “I know that’s a scary prospect for folks. Some of that is beyond their control. What is within each of our control is how leveraged or overleveraged we are in that investment.”
Predicting what will happen with the market is just that – a prediction. But Bigley noted that many of the factors we say in 208 are similar to what we saw in 2008.
“Credit is really easily available, down payments are low if you want them that way,” said Bigley. “Maybe some people are getting loans who ought not to be.”
Buying a home can be a great investment – but only if an individual has done his or her homework and knows what they can afford, particularly what they can afford if their current circumstances change, like a spouse being laid off or a job change. It’s also important to note that it can take several years for mortgage and home ownership related issues to surface.
“There was a real lag in when we say those cases – 2014, 2015, 2016 is when we got a lot of cases from people who were dealing with their properties being foreclosed on,” said Bigley.
But just because an issue presents itself doesn’t mean it will result in denial or revocation. Under Continuous Vetting (CV), the government may find out about a mortgage related issue faster. But just because an issue gets flagged doesn’t mean it will result in denial or revocation. The government is less concerned with the debt or delinquency than how you solved it and how you responded.
“Did you act reasonably, did you try to solve this, or did you just toss up your hands and walk away,” said Bigley.
Buying a Home Overseas
In addition to the financial considerations around buying a home, the other factor that may apply to security clearance holders and applicants is foreign influence – if they find themselves purchasing or inheriting a home in a foreign country.
“For clearance holders you do have to be cognizant of the perception,” said Bigley. “It’s can this be leveraged against you somehow by a foreign government or hostile actor. Identity of the country matters.”
