Home Upside DownHome Upside Down is a term referred to a home when the home-owner owes more
than the current market value of the home.
Upside Down on Home: Should I walk away? Absolutely not. Luckily, you are not the only one in this situation. The rising rate of foreclosures and short sales is driving down prices of homes in all neighborhoods and more people find themselves to be upside down on their homes. If there was a solution available for you to get rid of the negative equity in your home and get back into a loan with a little bit of equity, would you walk away? In the above example for instance, the home-owner can get a new loan for $180,000;
thus wiping away $200,000 of negative equity and adding $20,000 for positive
equity. This solution is known as Principal Reduction and more information
on Principal Reduction
and a FREE
Consultation for Principal Reduction are both available.
Conventional refinancing will not work for an upside down home.
Conventional rules for refinancing require that the home-owner
have positive equity in their home.
However, Principal Reduction is a newer form of refinancing which erases the the negative equity in a home and lets the home-owner in a more desirable situation of having some positive equity in their home. If the home-owner has no income coming in, he will not be eligible for
Principal reduction and should apply for a Loan Modification. Visit us to
obtain a FREE
Consultation for Loan Modification to save your home.
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