Due to financial issues and obscene interest rates, many people want to sell their home even though their mortgage may be worth more than their house’s value. Fortunately, there are options available for homeowners in this type of situation, like refinancing the mortgage or working with the bank to modify the loan. Also, it’s possible to seek out a short sale to recoup as much money as possible. If all else fails, homeowners can simply accept the foreclosure process, although it is a major hit to their credit.
Key Takeaways:
- when your home is worth less than you owe on it you have a number of options including stay and pay since the home may have emotional value or you are worried about your credit
- If you owe more than a home is worth an option is to refinance the mortgage or get a loan modification with a lower interest rate or longer payment period to reduce the payments.
- If you do not want to keep the home you can attempt a short sale if the lender agrees to the sale or simply abandon the property and suffer the loss
“When the housing bubble popped in 2007-2008, millions of homeowners ended up with homes that are worth less than they owe on them.”
Read more: https://www.credit.com/blog/underwater-on-your-home-your-six-options-34794/