What Should You Do If Your Home is Underwater?
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When Realtors, lenders and others use the term underwater to describe the market condition of your home, they are figuratively describing the market value of the home compared to its mortgage balance. It strictly means the market value of the home is less than the mortgage balance. In several cases, I have seen the market value of homes being more than $100,000 less than the mortgage balance. In other words, if these homeowners sold their homes at market value they would have to bring $100,000 of their own money to the settlement table to complete the transaction. Some homeowners facing this situation are shocked, confused and have no idea of what to do. They may ask themselves should they continue to make mortgage payments on the home, or should they pack up and walk away. There are others that realize the situation they are in, but have too much pride to discuss the situation with anyone; they just continue to sink money into what’s turned out to be a bad investment. If you are in this situation, you must convince yourself that you need to take some type of action immediately to correct the situation the best you can. I suggest clicking here Making My Home Affordable to see what programs the Government has enacted to help homeowners in the same situation. Also a phone call to 1-888-995-Hope can put you in touch with a HUD housing counselor for guidance. In many cases, they may be able to recommend a loan modification whereby homeowners can manage their mortgages and continue to remain in their homes. However, there are not going to be alternatives whereby every homeowner will be able to remain in his/her home. In these cases, the “Short Sale” alternative may be recommended. If the short sale alternative is the best solution for your situation, I suggest you contact an experienced Realtor knowledgeable of the short sale process so that you will not be left with a deficiency judgment after the sale of your home. For a professional Realtor to help you, click HELP!
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