I have a bad mortgage situation that I need to get out of?
by Mortgage Rates on Wednesday, October 20th, 2010 | 4 Comments
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You are underwater, just like tens of thousands of people, including myself. I continue to pay my mortgage, because I’d just have to pay to live somewhere anyways, and this way I can write off my mortgage interest. Real Estate is a long term investment, unfortunately, in the past few years, it became viewed as a short term one. You can try to negotiate a short sale or simply walk away from your property and allow the bank to foreclose. The short sale will be less damaging to your credit, but the bank doesn’t have be willing to work with you on it.
You can’t refinance it.
The real estate market is never guaranteed to go up in value. The key is to buy what you can easily afford on a fixed rate mortgage and if the value goes down, wait for the value to go up.
If you walk away now, you’ll end up renting (big gain in that, eh?), and you’ll trash your credit.
SMART people are waiting out this market correction…b/c that is what it is…a correction.
http://search.yahoo.com/search?p=obama+mortgage+help&fr=ush-ans&ygmasrchbtn=Web+Search
First, have a Realtor do an analysis (free) and check to see if have been any recent sales of condos similar to yours. Find out what it’s worth (you only say you’re afraid you owe more).
You might have to wait it out until the market rebounds. If you have to move, consider renting your condo.