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, often known as being underwater or upside-down in your mortgage, has unfortunately become a way of life. 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 are facing unemployment and/or can no longer make payments in these tough economic times are having a really hard time feeling 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. A short sale takes place when the bank will allow the purchase of the home for less than what is owed. For a homeowner, this can be desirable because 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.
- Loan modification. 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 homebuyers 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 or a loan modification will do the trick. And best of all, you don’t have to think about that dirty little word: foreclosure.