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Are You Under Water?

First of all you are not alone. Many homeowners struggle with their mortgage. Owning more on your home than it is worth can be referred to as “upside down” or “under water” and can be a common situation. If you are a homeowner behind on your payments it may feel like and impossible situation. You may be considering walking away from your mortgage and letting the bank “have it”. There are better options. The sooner you discuss your situation with a professional the better the outcome.


Conventional Sale

Have you lived in your home a long time?   There is a good possibility that you may have some equity in the property. Don’t assume your home’s value. The online websites are not always correct and have a variety of factors missing in their metrics that affect your home’s actual value. Review your property value with a licensed Realtor who can assess your value correctly.


Short Sale

A short sale is when a bank will allow you to sell for less than you owe without having to repay the difference. Short sales typically net the bank more than a foreclosure sale. This is a serious option for you to consider if you are upside down on your mortgage. Short sales require patience and time and are much more difficult than a conventional sale. There is no guarantee that your lending institution will accept a short sale. Working with a professional Realtor will increase your chances for success.



If your home is in a high demand area for rentals it may be advantageous to considering renting the home to make the monthly mortgage payment while renting something smaller for yourself within your budget. It may seem counter logic but this is actually an option that may save you from a foreclosure.


Most Importantly

Once overdue notices arrive from the lender --- Open your mail. Most lenders understand people experience financial problems and are willing to work with homeowners that want to resolve their situation. Contact your lender and begin a conversation regarding options to save your home without going into foreclosure.

 **Due to the complexity and financial importance of your mortgage it is recommended that you discuss your situation with a professional lawyer and accountant.**


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