Many people are unaware, until they start thinking about selling their home, that they are upside-down or underwater on their home mortgage. This means you owe more on your loan than the current appraisal or market value of your home. For people needing to sell or downsize on their mortgage, it can seem like an impossible situation. Please review these mortgage tips to help provide guidance on how to handle your upside-down mortgage.

Rent - Once you find that selling your home will not pay off the mortgage, start to consider other options. Take a moment to look at the option of renting your current home and moving to a more affordable home option. If your tenant’s rent is greater or equal to the cost of the mortgage, you can use this time to help get your finances back on track and not feel the weight of the higher mortgage payment. Speak with a professional, such as myself, about the options of renting your home.

Refinance - Review the reasons that your current mortgage is high. Mortgages with higher interests rates or short terms can be refinanced to help reduce the monthly cost of the mortgage payment. Always consult your financial expert when considering refinancing to ensure that you receive the best loan that provides the most financial benefits to you and your family.

Stick it Out - Make a list of the reasons that you want to sell your current home. Analyze the reasons and determine if the reasons are financially beneficial or led by wants or other unpractical motives. If the analysis reveals the best financial option is to remain in the home, then make the best of it. Paying the monthly mortgage on time each month builds credit history and reduces the amount you are upside-down on the loan. Eventually, you will reach the breakeven point on your loan, and in time, payoff the loan in full.

The choices regarding your home are big decisions. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin, at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.

The changes in the economy and other factors are leaving people with difficult decisions to make. If you know that your current home or other situation is straining your finances, when do you make the decision to short sale over a traditional sale? Understanding the facts about short sales and traditional sales will help you to make the best decision for your home and family.

Traditional Sale - A traditional sale is the basic sale where the seller and buyer agree upon a price and the title of the property is transferred to the buyer. A traditional sale places the seller in complete control of to whom and what price the home sales for. In situations where the seller owes less or equals to the market value of the home, traditional sale typically is the best option. The traditional sale does not impact your credit score and leaves you in the position to immediately purchase a new home that meets your new finances.

Short Sale - The short sale is where the mortgage holder or lender agrees to accept a lower amount than what is owned on the current loan. This option is appropriate when a seller is behind on their mortgage or owes more than the current value of the home. The short sale will give the seller the opportunity to avoid foreclosure or further damage to their credit by limiting the information on their credit history to just any late payments.

Both options provide the seller with benefits and the opportunity to avoid foreclosure. If you have been reviewing your options for selling your home please contact a professional, such as myself to receive more information and have all of your questions answered.      

The decision to sell your home as a short sale or traditional sale is a big decision. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.

Last week we started discussing the benefits of short sale versus foreclosure. If you are still undecided about which is the better option for your home and your unique situation, take a moment to review these next points showing the benefits of short sale versus foreclosure.

Loan Applications - Whether you are buying your next home or a car, the majority of loan applications will ask if you have ever had a foreclosure. Previous foreclosures can make getting any type of loan more difficult. Loan applications do not ask applicants if they have had a short sale, and short sales will not appear on a credit history report.

Deficiency Amount and Judgement - The deficiency amount is the difference in the amount of the loan and the amount the lender was able to acquire in the selling of your home. In the majority of cases, a short sale generates a higher sales price and leaves less of a deficiency amount on the home. Due to the lesser amount of the deficiency, many mortgage companies forgive the debt and do not require repayment.

Increased Home Values - Many people are unaware that foreclosure reduces the home value of homes in the neighborhood. Selecting to sell your home through a short sale not only benefits you as the seller, but benefits your neighborhood as well.

Less Stress and More Control - Once a foreclosure begins, the home owner has limited control over the foreclosure, and this makes the stressful situation feel even worse. Although a short sale is not stress or risk free, it does provide the home owner with a sense of control by providing the home owner with more options.   

The decision to sell your home as a short sale or foreclose on your home is a big decision. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.