Discovering that you owe more on your mortgage than your home is worth is never a pleasant thing, but relax. There are millions of homeowners in your situation. But what’s encouraging is to know that there’s always something you can do about your situation.
Here are your options.
Consider loan modification
More likely than not, the mortgage company here in Hendersonville you took the loan from will be willing to listen to you when you raise the concern of being underwater on your loan. This is particularly so if your mortgage payment is over 31% of your monthly income.
The lender may agree to lower the payment and interest rate, at least temporarily.
Consider a short sale
Approach your lender about the possibility of a short sale. If they give you the green light to proceed, you can sell your home for a lesser amount than the one you owe from a lender. Some will consent to wipe out tens of thousands of dollars you owe them.
However, ensure that you’ve cleared all the taxes on the pardoned debt.
Refinance the loan
When you have negative equity, chances are you’ll not be able to do a traditional refinance. Still, it doesn’t hurt to talk to your lender about what to do in your situation. The great news is that your credit score remains intact even with the refinance.
However, your home could still suffer foreclosure should you fail to keep up with your mortgage payments.
File for bankruptcy
When the financial burden becomes too heavy for you to handle, you can always file for bankruptcy. But realize that this move doesn’t erase your mortgage. However, getting your other debts eliminated frees up the money you need to catch up on your mortgage payment.
Don’t feel helpless when you find yourself with an underwater mortgage. There are always smart ways to deal with the situation and get good results.