Negative Equity Can Be a Challenge

Part of today’s real estate climateThe idea of negative equity goes against every reason why we all buy homes in the first place. There’s no denying that it is part of today’s real estate climate.

House Selling Tips – New Orleans Real Estate – Kenner Home BuyersYour home was likely bought with the intention of making a good investment for your future. You probably paid a reasonable amount for it, but knew that over the years you’d be collecting equity as you got the mortgage paid down. In today’s real estate market, though, many homeowners are finding that their homes are upside down instead. This is especially true of those who have only owned their home for a few years and put very little or nothing down on the house to begin with.

Upside down, or negative equity, means that you owe more than your home is worth today. After building equity by paying off your mortgage from month to month, you find that your equity has slipped away as you have watched the home values drop lower and lower. To find the equity, either positive or negative, you must use the appraised current market value to determine the worth of the home officially, and then find out what you owe exactly on your mortgage.

Upside down, or negative equity, means that you owe more than your home is worth today

If you still owe $340k on your house but value has dropped in value to just $320k on today’s market, this leaves you upside down on the mortgage loan. No one in their right mind will agree to pay you what you need for the house, which would be the full $340k, but rather they might buy your house for $320k or a bit less. What do you do with the difference? At closing you might need to bring $20k for the mortgage lender to make up the difference. That doesn’t sound good to anybody.

Holding on to your house until the market improves and equity begins to increase once again is certainly an option. Some will be able to do this, while others don’t have a choice. You may need to get out of your house at this point and the negative equity will definitely affect your ability to leave the mortgage contract. Given the current market and financial climate, there are just a few options for you if this is similar to your situation.

You can consider approaching your lender to get permission for a short sale. With this permission you can find a buyer who pays less than what you owe and the bank will accept the short amount, usually forgiving the rest. Selling to a real estate investor quickly for cash is another option and there is no obligation for you to ask for an offer.

Republished by Blog Post Promoter

The idea of negative equity goes against every reason why we all buy homes in the first place. There’s no denying that it is part of today’s real estate climate. House Selling Tips – New Orleans Real Estate – Kenner Home Buyers: Your home was likely bought...

Give Your House a Facelift with a Bucket of Discount Paint

Grab a bucket of discount paint and give your whole house a facelift. Use a neutral color for the interior rooms and the exterior, with a contrasting trim and bold front door color.

Louisiana House Buyers – Slidell LA House Buyers: A facelift is what your house desperately needs before you put it on the market for sale. The house is older and looks tired, dusty, and has a dingy appearance. Imagine what a fresh coat of paint could do for it.

The house is older and looks tired, dusty, and has a dingy appearance. Imagine what a fresh coat of paint could do for it.

The beauty of paint is that you can buy an inexpensive batch in a 5 gallon bucket and slap a whole new look on your tired old house. When you are in the position of selling due to financial hardship, the last thing you want to do is to buy expensive tough hide paint, or make other more costly upgrades and repairs. You may not have the resources to do so either.

Placing your improvements on a credit card is not a great idea, either, as you’ll need to preserve your good credit for when you have sold the house and are ready to move on to your next living situation. You’ll need the credit to be decent to be accepted into a rental unit by a landlord. If you plan to buy another house, you’ll also need good credit to obtain a loan. Moving has its own set of costs and unexpected surprise purchases that must be made, so you’ll need to have some resources for those things, too. It won’t be a happy day if you move into the new place and find that it doesn’t have a shower curtain or blinds on the windows and your credit cards are totally maxed out!

  • The beauty of paint is that you can buy an inexpensive batch in a 5 gallon bucket and slap a whole new look on your tired old house.
  • Paint is a very cheap way to improve the looks of your house, both inside and out.
  • Curb appeal will certainly get a boost with bright, fresh paint and a sharp contrasting trim color. 

Paint is a very cheap way to improve the looks of your house, both inside and out. It tends to freshen up everything it touches. Your rooms will be brighter and instantly clean. The exterior will stand out when potential buyers drive down the street to see it in person. Curb appeal will certainly get a boost with bright, fresh paint and a sharp contrasting trim color. For even better results, choose a dramatic color in glossy or semi-gloss with which to paint the front door. A sunny yellow, a racy red, or even a patriotic royal blue will give the whole house a new and different look that says ‘welcome’ when your buyers arrive.

The whole house, other than the front door and the exterior trim, will be best served with a neutral color that’s on the lighter side of the color spectrum. Light colors present an illusion of larger space whether indoors or outdoors.

Republished by Blog Post Promoter

Grab a bucket of discount paint and give your whole house a facelift. Use a neutral color for the interior rooms and the exterior, with a contrasting trim and bold front door color. Louisiana House Buyers – Slidell LA House Buyers: A facelift is what your house...

Personal Details are Important when Selling

“Buyers do think in personal detail, most  lean more toward using rooms for what they were originally intended.” We Buy Houses – New Orleans LA: Arrange some furniture in your house that’s for sale, even if you are no longer there. It will help the buyer to imagine what it’s like to live there. This...

Read the rest of this entry

“Buyers do think in personal detail, most  lean more toward using rooms for what they were originally intended.” We Buy Houses – New Orleans LA: Arrange some furniture in your house that’s for sale, even if you are no longer there. It will help the...

Personal Details are Important when Selling

Personal Details are Important when Selling

“Buyers do think in personal detail, most  lean more toward using rooms for what they were originally intended.”

We Buy Houses – New Orleans LA: Arrange some furniture in your house that’s for sale, even if you are no longer there. It will help the buyer to imagine what it’s like to live there. This is why it is important to leave at least some furniture in the house you are selling. [..read more..]

Republished by Blog Post Promoter

“Buyers do think in personal detail, most  lean more toward using rooms for what they were originally intended.” We Buy Houses – New Orleans LA: Arrange some furniture in your house that’s for sale, even if you are no longer there. It will help the...

Sell to Get Rid of Your ARM Loan

New Orleans House BuyersIf a reset will increase your mortgage payment when you are barely making ends meet as it is, consider selling, paying off your loan, and starting over.

We Buy Houses – New Orleans LA: The ARM loan is too variable if you have a limited income. An ARM, or adjustable rate mortgage, is not the ideal way to finance a house. You know that now, perhaps, but when you applied for a mortgage and that was made attractive to you, it seemed like the best way to go at the time. At this point you may wish you hadn’t signed for the ARM and are in financial dire straits, making you ineligible for a refinance. Getting a new fixed rate mortgage loan would be the solution but they are hard to qualify for. You must show good credit and a steady employment or income coming in.

If you don’t qualify for a refinance, you may need to abandon ship, so to speak. Selling the house while you still can may be a good option for you. You can always buy another house and this time go for a fixed rate mortgage at a reasonable interest rate. This is, after all, a great time to buy. If you sell and pay off your current mortgage before you get behind on your payments you may still have credit that will qualify you for a new loan anywhere from a month from now to two years out. In the meantime, you can either rent until you gather your resources again and regroup, or you can lease option or rent to own through a real estate investor or wholesaler.

With an ARM you can’t be sure of what your mortgage payments will be once the rates reset. In this difficult and challenging economy it’s best to know exactly what you will have to earn to pay all of your bills. Mortgages with ARM loans can differ as much as several hundred dollars when the interest rates reset. If you are just getting by as it is, and you anticipate your initial payments are going to reset in the future, you might want to see what you can do about gracefully bowing out of your mortgage.

This is not a suggestion that you abandon the house and let it go into foreclosure. That’s the absolute last option and the worst one at that. The best option may be to sell your house quickly and pay off the mortgage that you owe. Then start over and this time around get a fixed rate mortgage so you’ll know what you need to come up with every month without variance.

Republished by Blog Post Promoter

If a reset will increase your mortgage payment when you are barely making ends meet as it is, consider selling, paying off your loan, and starting over. We Buy Houses – New Orleans LA: The ARM loan is too variable if you have a limited income. An ARM, or adjustable...

Reduce Your Monthly House Payment

Reduce Your Monthly House Payment

Contact your lender or pay a visit to the bank to see what can be done to reduce you monthly payments.

Sell Home Fast – New Orleans LA: There are a couple of ways in which you can help to reduce your monthly mortgage payments. If you are like many American families today it’s getting more and more difficult to make ends meet. You want to maintain home ownership because it makes more sense than throwing your money away each month to someone else so they can pay their mortgage on the property.

If your payment is getting too big for you to handle or if your circumstances have changed since you first took out your loan, you can attempt to do something about it. The first thing would be to call your lender or pay a visit in the bank that gave you your loan. Tell them you are interested in seeing what can be done about reducing your monthly payments. They may suggest a refinance or a modification of your loan.

“Each percentage point of interest costs you more in monthly payments so getting that reduced can actually be quite a bit of difference to your monthly payments.”

A refinance would be a possible option if your credit is great. If it’s better than what it was when you took out your loan you may be eligible for a better interest rate. Each percentage point of interest costs you more in monthly payments so getting that reduced can actually be quite a bit of difference to your monthly payments. The loan will also cost you less over the life of the loan with a smaller interest rate.

Interest rates are based on the way the bank sees your ability to pay them back. The higher the risk you represent, the higher the interest rate as they are taking a bigger chance on you than if you had solid income and a great credit history. Often when a family needs to reduce their monthly payments it’s because you have less resources to help you pay your obligations, making you a higher risk to the lender.

In that case, you may be eligible for a loan modification. In this instance the lender can choose to give you a modified loan but there are qualifiers that you must meet. Job loss, injury, major illness and surgeries, and death in the family are examples of situations that have happened at no fault of your own and they may be willing to work with you so you can maintain your home. Running up your credit cards doesn’t count as a family emergency. They would rather do this where possible than have you default, which means they won’t be paid back for their loan.

Republished by Blog Post Promoter

Contact your lender or pay a visit to the bank to see what can be done to reduce you monthly payments. Sell Home Fast – New Orleans LA: There are a couple of ways in which you can help to reduce your monthly mortgage payments. If you are like many American...