Are you underwater on your mortgage and need to sell?
If you're in this situation, you're not alone. This means you owe more on your mortgage than the value of your home.
If you need to sell your home while you're underwater, there are a few options available to you.
- Short sale: A short sale is when you sell your home for less than the amount you owe on your mortgage. Your lender will need to approve the short sale, and it may affect your credit score.
- Foreclosure: Foreclosure is when your lender takes possession of your home. Then sells it to pay off your mortgage. This will damage your credit score and make it difficult to get a loan in the future.
- Wait it out: If you can, wait until the housing market recovers and your home regains its value.
- This may take several years, but it will save you from having to short sale or foreclose on your home.
If you're not sure what to do, it's important to talk to a financial advisor or real estate agent.
They can help you assess your options. Then you can choose the best course of action for your situation.
Here are some more tips for selling an underwater home:
- Get a professional appraisal to determine the current value of your home.
- Discuss pricing your home with a real estate agent.
- Hire a real estate agent who has experience selling underwater homes.
- Consider renting the home for a few years. Give the mrket a chance to catch up.
- Be patient. It may take longer to sell an underwater home than a home that's not underwater.
