Is Your Mortgage Underwater? Here Are Your Options
Nearly 4.5 million Americans owe more on their mortgages than their homes are worth. For these homeowners, what once seemed like a sound investment is now an inescapable hole. If your mortgage is underwater, you’re not alone. Below, we’ll discuss what the options are for homeowners that are underwater on their mortgage. If your situation has left you feeling like you’re out of options, request a cash offer from Gateway House Buyers, we are people who buy homes in Clarksville, TN.
Option 1: Do Nothing
Many homeowners make the mistake of staying in a home that they can’t afford. While the prospect of losing money on an investment doesn’t sit well with many people, it’s not worth it to burn money on an unaffordable mortgage while missing out on a more affordable residence or a job opportunity in another city. If you’re between a rock and a hard place, the last thing you should do is stay put.
Option 2: Refinance Your Mortgage
If you can pull it off, refinancing your mortgage might be your best option. By refinancing, you can benefit from a lower interest rate and monthly payment, assuming that you’re eligible and your lender approves you for a refinance, which will be difficult with bad credit or low income. However, refinancing isn’t going to help you if you are looking to sell your home, and it isn’t going to stop your mortgage from being underwater.
Option 3: Strategic Default
In a strategic default, a homeowner simply stops paying their mortgage. Rather than continue to pay for a mortgage on a property that is unlikely to recover its value, a homeowner will pack up and move away. While the concept of washing your hands of your property may be tempting, strategic default is not without its consequences. It will demolish your credit score, making it difficult to take out any other loan, let alone a new mortgage. Simply put, there’s nothing very “strategic” about strategic default. As you’ll see next, there’s no need to walk away without cash in hand.
Option 4: Sell to a Real Estate Buyer
At Gateway House Buyers, we’ve worked with numerous homeowners who wanted to make the best of a bad situation. We assisted them and can assist you by offering to pay cash for your home regardless of your financial situation. If your mortgage is underwater, there’s no reason for you to walk away empty-handed. I buy houses in Clarksville, TN, and can give you an offer for your home within 24-48 hours, and close on your home in as little as seven days. Put yourself in the best position to move forward by selling your home for cash to your local real estate buyers at Gateway House Buyers.
If you are interested in meeting people who buy homes in Clarksville, TN, Gateway House Buyers can help. To learn more about our professional home buying services, submit our contact request form today.