Are There Options To Reduce Mortgages That Are Greater Than The Value Of Your Home?
The combination of my first and second mortgages is greater than the value of my home. I am not behind on payments, but am concerned if anything happened to my home, I would not be able to completely pay the loans on my property.
Tags: Greater, home, Mortgages, Options, Reduce, Than, There, Value
You might have a few options to get it back under control – talk to your lender, and see if they suggest anything.
Otherwise, your best bet is going to be strapping down and getting your debt under control.
Take a serious look at your budget and income. There are most likely things you can forego in order to start making larger payments on the second mortgage (verify with your lender that there aren’t any penalties for early payoff).
A second job may be in order for bringing in additional income.
Otherwise, just keep on paying the payments, and hope nothing happens. Chances are in a few years real-estate prices will start going back up, and your house will regain some value (depending on how overpriced it was when you first bought it, and how much money you have borrowed against it).
Good luck!
You will not be able to reduce the mortgage. That is the amount of cash you were given, that amount does not flucuate with the value of the property.
No…the only way to do that would be a loan remodification under the Obama plan, but reduction of the mortgage is the last step and only available if your debt to income level is high. Youwould have to be behindon your mortgage (thus hurting your credit rating) and have high payments in relation to income. If you are not having problems making payments, you would probably not qualify.
The only way to reverse your situation is continued payments bringing down the principal owed couple with some appreciation on the property (which hopefully will occur in the next 6 to 12 months).
Hello. There are government programs out there that you may qualify for. Go to http://makinghomeaffordable.gov/eligibility.html and see the guidelines. Even if your loan is not Freddie or Fannie you may want to check with your mortgage company and see if they are offering similar type programs. Good luck!
only way to reduce those loan balances is a short sale or to allow a foreclosure.
most loan modifications just extend life so that payments go down. not many reduce principal.