Underwater with your mortgage?

If you owe more on your home than you can recover from the sale of your home minus the cost of selling, what should you do?

First of all, there are many people in the same situation and largely this is not the fault of the homebuyer.  Market price declines have been historically large and predicting this outcome was difficult.

Although many indicators of problems were available, the market ignored the very same problems for a long time while home prices soared.  So don’t blame yourself for bad judgment.

And if you are an investor and bought properties with the hope of flipping for a profit, it can be an important lesson that market forces can change rapidly and it’s important to be nimble with your investments, and sometimes prudent to get out with a small loss instead of riding a price decline to the bottom.

Anyway, if you are underwater, the best thing you can do is to educate yourself about the options.  You do have options.  Before you slide into delinquency or all the way to foreclosure, get some advice.

It’s easy to get paralyzed by fear and wait and wait, unable to move forward.  But the longer you wait, the less effective some of your options will be, so you are actually making things worse.

The right course of action will be different for each individual due to their own unique set of circumstances.

Give me a call if you need help sorting out your next step.

Phil McCollum
BRC Realty Group
562-225-5234