Are You "Upside-Down" at Home?

No, I'm not talking athletics, but financing. In recent years it's been very popular to re-finance one's home every time one needs cash for other purposes. And it's been easy to do with many lending institutions willing to lend money at almost every beck and call.

The end result, unfortunately, now that our real estate market has dropped, is that many home owners owe more on their house than the house is worth today. If that describes your situation, you are "upside-down" in relation to your mortgage. If you had circumstances that meant selling your home, you have to bring money to closing to pay off your mortgage. Not everyone would be able to do that.

What then? Perhaps a Realtor could help. Depending on the full set of circumstances we may be able to negotiate with the lender to let us list and sell your home for less than what is owed. This is called a "short sale." This would save you from having a foreclosure on your credit record (which stays on your record for 12 years!) and allow you to move on with your life more quickly than if you had to go through foreclosure.

Obviously, if you are making your payments O.K. and do not have to move for any reason, stay put and pay down that mortgage as much as possible and as quickly as possible to bring it back into the realm of today's values. And try to avoid future re-finances unless they are to better your situation, like getting a lower rate, while not adding to your debt.

If you have any questions about real estate, or any concerns about the possibility of losing your home, please do give me a call, sooner rather than later. I will keep your concerns confidential.