Whether you overpaid for the property in a bidding war, you’ve fallen behind on mortgage payments, or property values have dipped, being upside-down on your mortgage or owing more than the current market value is a less-than-ideal situation for homeowners. If circumstances force you to sell your house instead of waiting out a market turnaround for values to rise, you may feel backed into a corner. Understandably you don’t want to make a costly misstep when faced with this dilemma, so exploring your options is helpful.
With so many decisions ahead, being fully informed and weighing the benefits of each will help you feel confident in the action you take. So read on as we explore four things you can do if you are upside-down on your mortgage in California.
Assessment
The first thing you can do if you are upside-down on your mortgage in California is to get a realistic picture of where you stand. Then, contact your lender for the amount owing on the mortgage and schedule a professional appraiser so that you’ll work with exact numbers.
Professional buyers like those at Tom and Nancy Buy Houses want you to make an educated decision about your future, so they’ll compare what you could earn from listing vs. our offer to buy your house directly as-is for cash, and you can skip the prep, cleaning, and repairs. At Tom and Nancy Buy Houses, our professional buyers provide all the details used to calculate our offer because we want you to agree it is fair and feel good about working with us long after closing.
Short Sale
Naturally, you want to try every option if you are upside-down on your mortgage in California; while a short sale has some consequences, they don’t compare to the fallout from claiming bankruptcy or a foreclosure on your credit record. Professional buyers like those at Tom and Nancy Buy Houses are highly seasoned negotiators who can work out a short sale with your lender. A direct sale to one of our professional buyers at Tom and Nancy Buy Houses makes it easy to solve your home selling troubles in California.
Pay the Difference
Another thing you can do if you’re upside-down on your mortgage in California is to sell the property and bring the amount owing to the closing table to pay off the remainder of the mortgage. With a direct sale of your California house to professional buyers like those at Tom and Nancy Buy Houses, you’ll get a fair value and won’t pay any hefty real estate commissions. At Tom and Nancy Buy Houses, our professional buyers operate with total transparency. At Tom and Nancy Buy Houses, there are no hidden fees, and because of our full-service in-house team of industry specialists, you won’t pay any closing costs, and we can provide you with a fast, guaranteed closing day. Or talk to your professional buyer from Tom and Nancy Buy Houses about selecting the best calendar date for your closing.
At Tom and Nancy Buy Houses, our professional buyers are the best option if you are upside-down on your mortgage in California and need to sell. At Tom and Nancy Buy Houses, our professional buyers stop everything and listen to sellers to help find the best resolution for your situation. Feel free to ask us any questions or express any concerns you may have about the process of a direct sale of your California house. At Tom and Nancy Buy Houses, we are your neighbors who live and work alongside you, and we are proud of the work we do helping California sellers with unique and individualized solutions, one seller, one property at a time. So why learn more about the difference a direct sale of your house can make by talking with a professional buyer from Tom and Nancy Buy Houses for yourself without obligation? Call Tom and Nancy Buy Houses at 559-715-1651.
.These are some questions that Tom and Nancy Buy Houses in Los Banos and surrounding areas are asked about if I’m upside down on my house what should I do.
Can you refinance a house that is upside down?
When you are upside down in your mortgage payment but you might not be able to get enough money to cover all your outstanding principal when you’re underwater. This leaves you with only two options: stay in your home and keep making payments or sell the home and cover the rest from your savings. One potential solution would be to sell your home through a short sale.
What if I’m upside down on my house?
Perhaps the most prudent option is to stay in your home longer and continue making payments to build equity. Because you are Upside Down, it could take a considerable amount of time. However, if you are close to the end of your loan term or have just started making payments, staying in the home may be your best option.
Can you get money out of your house without refinancing?
Home equity loans and HELOCs are two of the most common ways homeowners tap into their equity without refinancing. Both allow you to borrow against your home equity, just in slightly different ways. With a home equity loan, you get a lump-sum payment and then repay the loan monthly over time.
Is being upside down in a loan the same as having negative equity?
If you owe more on your current home loan than the housse is worth—referred to as being “upside down”—then you have negative equity. In other words, if you tried to sell your house, you wouldn’t be able to get what you already owe on it.
Can I walk away from a mortgage?
Another option is to simply to walk away from the mortgage — a move called a “strategic default” — but, like a short sale or foreclosure, doing so can be damaging to your future homeownership prospects and credit score. In short, this option also puts you in a precarious financial situation. Tom and Nancy Buy Houses don’t suggest you do this. At Tom and Nancy Buy Houses we have several options that you can choose from and you decide what is the best thing for you to do. You make up your mind with no obligation what so ever from Tom and Nancy Buy Houses or you can call us at 559-715-1651 as soon as possible if you find yourself in this predicament.
When your house is up side down then Is pulling equity out of your house a good idea?
Pros of home equity loans
Taking out a home equity loan can help you fund life expenses such as home renovations, higher education costs or unexpected emergencies. Home equity loans tend to have lower interest rates than other types of debt, which is a significant benefit in today’s rising interest rate environment.
What is mortgage abandonment?
Not to be confused with defaulting on a mortgage, abandonment occurs when the owner of a property demonstrates that they have no intention of returning to the property and have given up their legal claim to the property. Tom and Nancy Buy Houses can help you when you become in this state. Don’t let this happen to you at Tom and Nancy Buy Houses can help you, we have several options for you to choose from. The professionals at Tom and Nancy Buy Houses can help you so call us today at 559-715-1651.