Owning your own home is something to take great pride in. However for many Americans, owing more on their mortgage than the current home value unfortunately became a way of life. This is known as an upside-down mortgage.
Many of these Americans want to be right-side-up again. Houston Home investors are providing one more option for this new demographic of homeowners.
Some families are barely able to make the payment and are frustrated that they aren’t building equity in their homes. Others who face unemployment or can no longer make payments feel these the stress of their mortgages.
In fact, a report from Corelogic found that at the end of 2011, some 11.1 million — 22.8 percent — of all residential properties with a mortgage were in an underwater situation.
Here are several options if you are upside-down on your mortgage
Go for a short sale.
Short sales take place when banks purchase the home for less than the remaining amount owed. For a homeowner, this can be desirable. It won’t hurt your credit the way a foreclosure can. But in many cases, the stars have to be aligned just right and you need to have everything going your way for this to happen. Generally you have to find a bank willing to handle the short sale, you have to have a hardship, and you have to have a buyer lined up.
Some lenders might agree to let you lengthen the term of your loan and reduce your monthly payments. You need to have a good track record and it often depends on the lender, so it’s not always something you can count on.
Walk away and face foreclosure.
If you choose to stop making your mortgage payment and let the bank foreclose on you, you’ll harm your credit rating and have a hard time buying in the future.
Rent out your home.
If you can rent out your house to cover mortgage payments and rent a place that is less expensive, then you might be able to save some money. But don’t forget, you’ll still be responsible for maintenance and repairs and any damage that occurs while renters are residing there.
But sometimes the simplest solution of all is one you might not have even known about. Home investors like Big State Home Buyers are happy to help out home buyers in this situation. You won’t have to worry about real estate agents and getting your house ready for potential buyers. You won’t have to fret about whether renters will keep your house in good condition. And you won’t have to wonder if a loan modification will do the trick. And best of all, you don’t have to think about that dirty little word: foreclosure.