Thursday, August 9, 2012

Is Your House Worth Less Than You Owe?


Millions of Americans owe more on their home mortgage than what the home is worth now. This can make purchasing a new home or refinancing your current home difficult. This is particularly prominent for those who bought their homes at the peak of the market. However, there are options available to you, which will be discussed in this week’s blog.
Experienced mortgage professionals can tell you whether you qualify for a loan, once you fill out the mortgage loan application. If you do not qualify, we will explain why and give you specific suggestions for steps to take to improve your chances of qualifying for a loan in the future. Here are a few suggestions to help you with negative equity in your current home:

·        Sell your house at the best price you can get for it. Try to sell it at least for the mortgage balance, but make sure to consult your realtor and mortgage lender for guidance.
·        Ask about mortgage refinancing.  Refinancing may be difficult if there is no equity in the home, but it is worth exploring with your mortgage lender. 
·        If you are able to stay in your home, you may want to wait until home values rise again before putting your house on the market.
·        Consider reducing expenses and paying off debts. Though this does not improve your home equity status, it will put you in a better position when you apply to refinance or purchase a new home.

The housing market has been through some dramatic fluctuations and rebounding is the next natural phase after a downturn. Dealing with negative equity is not pleasant, but you do have options. At Intercoastal Mortgage Company, we are skilled in all areas of the refinancing and mortgage lending process. Contact me for a consultation and I will assist you in refinancing or purchasing your next home.

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