I owe more than my house is worth, how do I sell it fast? Colorado Springs or Pueblo

Unsure of What to Do When You're Upside Down on Your Home Mortgage Payments?

If you are a homeowner who refinanced at under a 5% interest rate – congratulations! You secured one of the lowest rates in history, and you've probably saved a considerable amount of money each month. However, if you find yourself in a situation where your mortgage balance is now more than your home's current value (as high interest rates have reset property values nationwide) – you are "upside down." Being upside down on your mortgage can be stressful, but it's not the end of the world. In this blog post, we will guide you through what to consider first and actions to take next when you're upside down on your home mortgage.

Firstly, consider your current financial situation. It's important to assess your income, expenses, and debts as a whole. Calculate your debt-to-income ratio (total debt payments monthly, compared to your monthly total take home income monthly) and determine whether you're eligible for any financial assistance programs. If your debt to income is above 45%, then you may qualify for financial hardship programs, or assistance. If you're in danger of losing your home, you may qualify for government home retention programs too, although these are hard to get unless your steadily employed still, and must be the occupant of the home. Additionally, it's crucial to have a detailed household budget that addresses your income, expenses, and financial goals.

Secondly, research your mortgage options. Depending on your financial situation, it may be worth considering refinancing your mortgage. Refinancing your mortgage can help you obtain new loan terms, and even change your loan type. Like recasting your mortgage to a complete 30 year loan again, when maybe you had already paid 8 years of mortgage payments. Your principle mortgage balance after 8 years of payments, may make your monthly payments lower when now extending the same principal balance out over 30 years, and starting the loan term over again. However, because of higher interest rates this can be disappointing as many homeowners find out, their mortgage payments may increase.

The second challenge when refinancing whole behind on payments, is your credit is suffering, because you’re not making your payments. Which disqualifies you from getting the loan in the first place.

Suppose for the many reasons lenders make refinancing hard, and is not an option for you. In that case, you may want to look into other option for paying your mortgage each month. You could rent it out. Beware, this comes with lots of headaches and hidden expenses once you add it all up. Sometimes you can even be responsible for thousands of dollars in damage, if you’re new found tenants run into financial issues, trash your property, and the house will no longer be rentable until you repair it for a few thousand dollars. Even if you get great tenants, the extra stress of being a landlord may be too risky and costly for you.

Thirdly, consider the possibility of seller financing. This is when you sell your home for the current loan balance (exactly your principal total balance on your home mortgage loan). A seller financing sale will help you avoid foreclosure, which can significantly impact your credit score positively. Contact The HelpfulHomeBuyer.com who specialize in seller assisted or seller financing sales of residential properties. The HelpfulHomeBuyer.com can guide you through the process, and discuss in every possibility with you.

Finally, it's important to remember that being upside down on your mortgage is not permanent. The housing market, like any other market, can be change over time, and home values are local. Continue to pay your mortgage payments as close to on time as you can, and work towards improving your financial situation by adding skills to your resume and keep applying for better jobs. With the right mindset, some support, and resilience, you can turn your situation around. Remember, The HelpfulHomeBuyer.com can even pay all of your back payments and penalty’s or late fees to bring your current home loan mortgage payments current! Yes!!! Current.

What would being current and having your credit score built up for you feel like? A sigh of relief? That’s what many people say about The HelpfulHomeBuyer.com.

Being upside down on your mortgage can be a challenging situation. However, by assessing your financial situation, researching your mortgage options, considering the possibility of a seller financing, keep growing your skill set, continuing on the job hunt, and staying optimistic, you can find your way out of this difficult situation. Remember, the most crucial factor in improving your financial situation is taking action and starting somewhere – start exploring your options today. If you’re not sure where to start… Let The HelpfulHomeBuyer.com know and they’ll be able to at least point you in the right direction. Maybe they’ll catch up your payments, and build your credit too!