What to Do If You Have Underwater Mortgage

Finding yourself deep in mortgage debt is one of the most unpleasant situations in life. You’ve probably thought about taking out a second mortgage, or checking out the HARP loan program, or even filing for bankruptcy. However, Primary Residential Mortgage, Inc. will be the first to tell you that these are all dreadful things to think about, but it’s something you just can’t ignore. An underwater mortgage is another instance that’s troublesome. Economic crises or taking out a home equity loan are only a few reasons for it. In the first quarter of 2017, there was still a 10.4% negative equity rate in the US. This could make owning a house seem like a risk, but don’t worry. Here are a few ways to work on an underwater mortgage. It’s not going to be easy, but it could help lessen the hassle.

1. Think about making a short sale.

If you find yourself having to leave your home right away to reduce your losses or because of outstanding debts, you can always talk to your lender for approval of a short sale. You just have to be ready to let go of it at a lower price than what you paid.

2. Consider refinancing your home.

Lower your monthly payments and interest rates by refinancing your mortgage. It could work for you in both the short and long term. The HARP loan can also help you, just do your research on how to be eligible for it.

3. Don’t do anything.

When you’re in this kind of situation, no written law says you have to leave your home, especially if it’s your dream home. You’ll never know when the market could undo an underwater mortgage by a rebound. There may be other options that you can discuss with your lender. So, don’t fret. Be open to the options presented to you and make the choice that’s most feasible for your finances.