What Does Underwater Mortgage Mean?

An underwater mortgage, sometimes called an upside-down mortgage, is a home loan with a higher principal than the home is worth. This happens when property values fall but you still need to repay the original balance of your loan.

What Is an Example of an Underwater Mortgage?

Say you owe $600,000 on your mortgage loan, but the market value of your home is only $575,000. Your mortgage debt is $25,000 more than your home’s value. In this case, your mortgage is underwater.

What causes underwater mortgage?

An underwater mortgage is a home purchase loan with a higher principal than the free-market value of the home. This situation can occur when property values are falling. In an underwater mortgage, the homeowner may not have any equity available for credit.

What to do if you’re underwater on your mortgage

Stay in the home and build equity. Homeowners who find themselves underwater on their mortgage have several options. …
Explore refinance options. …
Consider a short sale. …
Walk away from your mortgage. …
Foreclose and file for bankruptcy.
Go with Tom and Nancy Buy Houses and discuss your options. Tom and Nancy Buy Houses will give you several options to choose from, you pick the one you want or just say no.

What happens if your property goes underwater?

An underwater mortgage, sometimes called an upside-down mortgage, is a home loan with a higher principal than the home is worth. This happens when property values fall but you still need to repay the original balance of your loan.

What happens if your house is worth more than your mortgage?

While being upside down on your mortgage won’t prevent you from selling your home, you will need to pay the difference between the sale price and the balance on your loan. So, if your home sells for $200,000 and you owe $225,000 on your loan, you’ll need to pay the lender $25,000. This is what “Your Los Banos and surrounding areas Mortgage underwater” means. Tom and Nancy Buy Houses can help you through this. Just contact us today and see what we can do for you at 559-715-1651.

Your Los Banos and surrounding areas Mortgage underwater?

When your mortgage is underwater, the amount you owe on the mortgage loan is more than the property’s current market value. So, of course, it’s best to ride out the changing real estate market and stay in the home for several years to allow equity to build. However, many motivating factors lead homeowners to sell, such as moving long distances to be nearer to family, a sudden job relocation, or difficulty making payments. Tom and Nancy Buy Houses has several options for you to choose from. This also Includes addition to the typical stresses of life, selling your home can be extremely stressful, expensive, and time-consuming. It may also be the largest financial transaction of your life, and naturally, you want to make the best deal possible, despite your circumstances.

Understandably, sellers feel overwhelmed when faced with a mortgage underwater; however, when you understand your choices, you can move forward and confidently make decisions. A few options are available if you’re facing difficulty making payments. If you should find yourself with a Los Banos and Surrounding areas mortgage underwater, read on as we explore what you can do about it.

Lender Options

One option for those with a Los Banos and Surrounding areas mortgage underwater is to discuss the options your lender can provide, such as a loan modification, short sale, or submitting a deed in lieu of foreclosure. It’s best to enter any of these processes with your eyes wide open to the realities of what a lender will require of you. In addition, you should understand how your efforts will affect the outcome and the negative consequences, including the effect on your credit score and why you should avoid foreclosure. Foreclosure should be your last call unless you can’t help it. Professional buyers, like those at Tom and Nancy Buy Houses, can help you understand your options and weigh the pros and cons of each course of action. At Tom and Nancy Buy Houses, our professional buyers work with a policy of total transparency because we want what is best for the seller; we’re proud of our work helping Los Banos and Surrounding areas sellers deal with problems selling their houses.

Direct Sale

Or, if you have a Los Banos and Surrounding areas mortgage underwater, you could directly sell the property and avoid the hassles of negotiating with your lender, the paperwork, and jumping through hoops to meet deadlines and satisfy the lender. When you make a direct sale, you also avoid spending any cash out of pocket to prep, make repairs or pay for costly marketing expenses and real estate commissions. Professional buyers like those at Tom and Nancy Buy Houses buy houses in as-is condition and take on all the risks. At Tom and Nancy Buy Houses, our professional buyers never charge commissions at Tom and Nancy Buy Houses, and no hidden fees await you at closing. You won’t even pay closing costs because of our full-service in-house team of industry specialists at Tom and Nancy Buy Houses. This built-in team of local pros allows us to work quickly and efficiently and provide Los Banos and Surrounding areas sellers like you with a mortgage underwater in Los Banos and surrounding areas with a guaranteed closing date, often within days. Or talk to one of our local professional buyers at Tom and Nancy Buy Houses about selecting the best day for your move. When you want to close and when you want to move is considered at Tom and Nancy Buy Houses.

A direct sale to one of our professional buyers at Tom and Nancy Buy Houses is the best way to sell if you have a Los Banos and Surrounding areas mortgage underwater. We make selling directly easy for sellers at Tom and Nancy Buy Houses with straightforward contracts, and an offer you’ll agree is fair. At Tom and Nancy Buy Houses, we’re your neighbors who live and work alongside you here in Los Banos and Surrounding areas, and we want you to feel good about working with us long after closing. That is why the professional buyers at Tom and Nancy Buy Houses will talk to you with no obligation and allow you to compare what you would profit from each option and decide what works best, given your current personal and financial situation. Call Tom and Nancy Buy Houses at 559-715-1651.

Your Los Banos and surrounding Mortgage underwater? What should I do? First contact Tom and Nancy Buy Houses and let us know how we can help you. We will give you several options to choose from, you choose the option that you want. Decide you don’t like any options then just let Tom or Nancy know and we don’t bug you again.

Call Tom and Nancy Buy Houses today at 559-715-1651.