Friday, May 1, 2009

Know Upside Down Mortgage and Keep your Home

What is an upside down mortgage? If you purchased your home during the housing boom between 2004 and 2006 you may be caught with an upside down mortgage. If this is the situation, basically, you owe more money on your home than you could ever hope to gain by selling it. It is like knowing that you owe more on your dream home that it’s worth. But don’t worry because here are some options are provided by Life123 to let you keep your home.

Continue to make your payments as if nothing has changed. Stay on your home and it will help you to preserve your credit, and you can likely to refinance your home mortgage once the housing crisis improves.

Because of abnormal wear and tear of your home, leasing it is one of your options. By rentals you may surpass your upside down mortgage payment to improve your situation.

Renegotiate your home mortgage terms with your bank if your home has not yet depreciated too much. Keep in mind that your lender doesn’t really want your home any more than you want to lose it, so they may make every effort to help keep your home or else they will face an even bigger loss on their part.