If you can no longer pay your mortgage, but have 100,000 equity, what's the best solution?

Question

It's hard to pay our mortgage now with the rising property taxes and insurance. We do have 100,000 equity. Besides moving, what can we do to make things better or easier

Answer 1

Put it up for sale and drop the price, you do not have 100k that is only on paper. Hear is a hint if you really had 100k you would of been taxed on it, so it till you sell and have been taxed not do not have it.

Answer 2

If you can no longer make the mortgage payments on your house, I suggest you sell it to get all the equity out of it you have built up over the time you have had the property.

You can purchase a smaller house with the equity you get out of your house.

You have a couple of options when selling your house. You can hire a real estate agent or sell it yourself. Pick the best option you think will benefit you and what you want to accomplish.

You will need to place the property in good condition in order to get top dollar, so look around and see if it need painting in and our, landscapping, repair those items you let go over a period of time, new carpet would be nice, if you have not changed it in the last 2-3 years.

If you don't want to go through the trouble of getting it fixed up you may sell it as-is and get a few dollars lesss than top dollar. But spending about $4000.00-$5000.00 should put it in good shape for selling.

That is the solution because if you can't make the payments there is no other solution.

You did not say how old you were, if you are pass the aage of 62 you may apply for a reverse mortgage and if you qualify you may eliminate your mortgage all together. Check with a local mortgage broker that specialize in reverse mortgages. They can assist you in this transaction.

I have not done a reverse mortgage therefore I am giving you heresay information now. I understand the fees are a little high but worth it over the long term as it will not cost you anything out of pocket and it would prevent you from losing your home.

When was the last time you refinanced your home? It might be that your rate is too high and you can refinance into a lower interest rate thus lowering your monthly payment. Again call your local mortgage broker about refinancing your house. There will be a fee for this refinance, but again it will save your home for you.

Either way you go either with the reverse mortgage or refinance you will be required to produce lots of evidence of income and other stuff, bear with it you will get through it all, it will come to an end when you least expect it.

Do something, don't lose your most important assest that you have. If nothing else call you present mortgage company and see if they can be of some use to you. Don't take no for an answer, the person that answered the phone are pretty low on the totem pole, important people make decisions, not answer the phone, so ask for a decision maker, like a manager or Vice President or even the President.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

You have three options, in my opinion:
1) Refinance the house.
2) A home equity loan.
3) A home equity line of credit.
I don't like options #1 or #3, option #1 is bad because you essentially have 2 mortgages & option #3 sucks because that's essentially a credit card on the house & you DO NOT want to lose your equity. Best option is #2.

Answer 4

If you have $100,000 in equity you should definetly look into your options about refinancing. Even if your credit score is not the best that equity can definetly be a big plus for you. There are literally thousands of loan programs out there for you to help with your situation. Im actually a loan officer and can help you if you would be interested.

Answer 5

The answer depends in part on how long you have lived in the House, and how many years remain on your mortgage. If you have lived there several years and have substantially reduced your loan balance, refinancing for 30 years could reduce your monthly mortgage payment, thereby making the taxes and insurance more manageable. If you can't refinance and lower payments, I would suggest that selling your home and downsizing may be the only answer.

One caution: I would highly recommend against refinancing into an interest only mortgage. it may ease the immediate cash crunch, but it is a recipe for disaster IMHO.

Answer 6

refinance or sell the house and take your equity to put a down payment on a new house. if you really have $100K in equity, then you should sell the house. then you can use that to reduce your future mortgage payment by putting down a huge sum on a less expensive house with lower taxes or buy a condo.

Answer 7

Hi ,
If you are having such a well home equity go for a refinancing and get it done from a good agent . In case you do from me you will get rates with the higher fives or lower sixes or get it from any good loan officer .Am sure you will find a very good refiance deal . In case you have any problems write to me at [e-mail] .
regards,
kish

Answer 8

Just walk away its like burning 100k... j/k dont ever pay late, get in to see a mortage broker or better yet a financial advisor. I would get your self in a total refinance and get some of that equity pulled into a liquid account so you dont have to worry about paying your house or any other expences.
take care

Answer 9

There may be a better mortgage that you can afford. Contact me to discuss options designed for you.

Answer 10

have you looked into refinacing??