What options are available for people with underwater mortgages?
A home is an extremely important asset to people all across Atlanta. For most homeowners, a house is the single most expensive thing they own and it can be a source of great pride and comfort.
However, a home can also be the source of considerable stress and anxiety. Upkeep and repairs can be quite expensive, but it is the mortgage payments that many people struggle with the most. Thanks to factors including a volatile housing market and the economic recession, there are thousands of Atlanta residents who are currently underwater on their mortgage. This means that they owe more than a home is worth. If you are in this upsetting situation, you should understand what options you have to resolve your mortgage issues.
In some cases, it is possible for homeowners to keep their home and continue to pay their mortgage payments. Of course this could prove to be very difficult, but if and when home prices increase eventually it could pay off. However, it is important for people to understand that they will need to keep up with their mortgage payments, or there is a risk of foreclosure.
Another option is to refinance. As this article discusses, there are a number of refinancing programs for which a homeowner may be eligible. However, not every homeowner is eligible for refinancing. In some situations, it may instead be an option to seek a loan modification or short sale to avoid foreclosure.
Filing for bankruptcy protection can also be an effective option for underwater mortgages because it can discharge remaining balances on loans. Declaring bankruptcy can also wipe away other debts that are contributing to a person’s dire financial situation.
It can be very difficult for homeowners to examine all the options that may be available, especially when they are already dealing with the frustration and fear associated with falling behind on a mortgage or facing the threat of foreclosure. This is why many people with underwater mortgages discuss their situation with an attorney. Legal support can prove to be crucial in helping people keep their homes and deal with debt.