Making Home Affordable

What do you do if you can’t sell your house for the amount that you owe on the mortgage? When you owe more than your house is worth, you are considered to be “underwater” or “upside down”. Another name for this situation is “having negative equity”. This post is the first of two about homeowners in underwater mortgages. In this post, I will discuss some of the options that are available for homeowners who are able to save their homes. Live there and continue paying your mortgage. If you can afford your mortgage payments, and you don’t have to move, then you should stay in your house and continue to pay your mortgage. Try not to focus on your home’s financial value. Instead, focus on the fact that you have a place to live, and that eventually you will have your house paid off. Rent it out. If you absolutely have to move, and you can’t afford to sell your home, you can become a landlord and rent it out. The rental income may not be enough to cover all of the expenses, so you should be prepared to have to pay some money out of pocket. You also might want to hire a property management company to maintain your rental property for you. Some cities require you to have a rental license, and you will also want to look into getting insurance. You should also make sure that your mortgage and your townhouse or condo association allow you to rent out your property. If you decide to rent out your house, you should be prepared to do some legwork on your own. I also recommend consulting with an attorney who practices landlord/tenant law before deciding to become a landlord. Loan Modification. You may be able to work with your lender to modify your mortgage. Elizabeth Rosar Chermack is a Minnesota Attorney who offers Foreclosure Options Consultations.  Call (952) 491-0390 or send an email to liz@chermacklaw.com to schedule a consultation with Liz. ATTORNEY ADVERTISING MATERIAL. The content of this website is for informational purposes only and is not intended as legal advice. No attorney/client relationship is formed by use of this website. Do not submit confidential information via this site unless and until there is a signed retainer contract on file.