Walking Away From An Upside Down Mortgage
There are many reasons why you could be facing a mortgage that is in excess of the value of your home. In some areas, property values have drastically dropped while in other cases, homeowners refinanced to pull equity out of their home during a financial crisis. But regardless of the reason, you should not feel like you are alone. As recently as three years ago, over 4 million Americans owed their lender at least 20% more than their home was worth. And many of these millions of homeowners are beginning to wonder what their options are to get out of their mortgage.
Foreclosure is when you simply stop making payments on your home, and the lender takes possession of the property. Some homeowners see this as their only solution to get out of the high payments and overpaying for the home that they are in. But the harsh reality is that this choice will follow you for up to seven years. A foreclosure on your credit report will make it very difficult to rebuild your credit or to borrow money.
This is a process where your mortgage is permanently restructured making the payments more affordable. You must demonstrate to the lender that you cannot make your current payments due to financial hardship, and complete a test period to show that you can meet the proposed payment amount.
This is a temporary plan which allows those with a short-term financial hardship to restructure payments. The lender will agree to reduce the monthly payments or even suspend them for a few months. In return, the borrower agrees to begin making the full payment plus extra payments to get caught up after the forbearance period is over.
A Tough Choice
Walking away from your home is never a good idea. A foreclosure is not an easy challenge to overcome financially. And many of the restructure and repayment plans are only designed to offer short-term assistance. If you are hoping to salvage your credit, then you need to make a few difficult decisions about what you are willing to try. In many cases, your mortgage is only slightly more than the home is worth, so it is possible for you to pay down the mortgage to the value of your home. This might mean selling a second car, skipping a few vacations or even getting a second income, but it is possible. Once you have accomplished that, you will have more options.
A Fast Solution
With your mortgage being at or below your homes current value, you have the option to sell the house and pay off your mortgage. The secret is that you need to keep the costs very low when you sell the house. Paying 6% to a realtor will mean that you still owe more on the mortgage than you will clear on the sale. But contacting Higher Offer can eliminate all of the costs associated with selling your home so that you can pay the mortgage in full. We are a real estate investment company, and we will make you a cash offer for your home in as-is condition. In addition, we will provide all of the documents for the sale of the house, so you don’t need to hire a realtor. Contact a Higher Offer buyer today to begin this fast sale process.