If your property is underwater, there are options available to help relieve the burden:
While refinancing your KC home loan on an underwater property is not impossible, there are eligibility limitations. There are some programs available to refinance an underwater property like:
Remember that you will probably not be able to refinance if you are not up-to-date on your mortgage payments, or your KC home loan is backed by a different lender.
A KC home loan modification is different from a refinance in that a loan modification doesn’t replace the existing loan like a refinance does. Rather, it modifies your existing loan with a lower interest rate or by extending the loan term.
You can stay in your home and continue to make payments in hopes that the value of your home will go up. However, it is risky because it is very difficult (if not impossible) to predict future home values. So if you choose to stay, you must decide if you can realistically stay in your home and continue making KC home loan payments while waiting for home prices to rise. If not, you may have to rent out the property and look for another home.
Renting out the property until the sales market improves can be a viable option. You can get enough rent to cover property expenses and eventually break even. Not everyone can rent out their home. The reasons being either your homeowners association forbids it, or you cannot afford to maintain it.
If the aforementioned options are not feasible, you can opt for a short sale. A short sale occurs when you and the lender decide to sell the property for less than the amount owed rather than foreclosing. Before short selling, be sure to:
Foreclosing your home should be a last resort measure. By “strategically defaulting” on your home loan in KC, you simply stop making payments even if you can afford to stay current. Some homeowners choose to do this because the home is a bad investment and they want to wash their hands of it.
Naturally, consider the consequences of foreclosing like:
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
