If you find that your mortgage has turned itself upside-down it is probably because you bought your home during the great housing boom that occurred between the years 2004 and 2006. Because of this, you may now find yourself owing a lot more money on your home than it is actually worth. If this does occur and you find yourself financially stuck, take a look at these ways that you can use to get out of your upside-down home mortgage.
If you are still on top of your payments make sure that you keep it this way, by making your payments on time you will at least be in a better position to negotiate with your lender later. You may feel like you need to sell, but the reality is your home is no longer worth what you are paying on it, and therefore you won’t be able to sell it for as much as you owe. By making your payments you will continue to keep your credit score in good shape which will allow you to refinance when the current housing situation starts to improve.
If you are having trouble making those payments on time, then perhaps it is time to make an appointment and sit down with your lender. Thanks to some new regulations put in place by the Obama Administration, you can renegotiate your loan if you are one of the thousands of people affected by an upside down mortgage.
Most advisors will recommend that you stay in your home and wait till the economy starts to look up again, and that’s great advice because while you have lost some of the equity in your home, that isn’t going to be the case forever. Once the housing market starts to rebound, so will the value of your home. If you need some more options, then meet with your lender and talk about your refinancing options. Interest rates are at historic lows so that might be an option for you. If your credit score has remained above average and decent, then you should have some options.
If you find yourself falling behind on your payments, do not wait until the very last minute to work something out with your lender. Remember that you are not the only family in this situation; there are literally thousands upon thousands of homeowners that are finding themselves in the same boat. As the years go by the market is predicted to improve and if you can hang on until then, you should be safe. Just make sure that you don’t make a permanent decision for a temporary problem.