I bought my house 2 yrs ago. 100% finance, interest only 2 yr fixed and now it's time to refinance but now my house is worth less than I paid for it, what are my options?
2007-03-19 19:17:58 · 6 answers · asked by KAREN M 1 in Business & Finance ➔ Renting & Real Estate
1. Make more money to afford the higher payment
2. Sell the home (short sale)
3. Cut out the Starbucks
4. Get a renter to offset the cost of an adjusting interest rate
2007-03-19 19:21:51 · answer #1 · answered by Tadow 4 · 0⤊ 2⤋
Clean th place out & give it a new coat of paint. Get rid of any eye-sores & then get a second opinion on your evaluation. That should get you a higher evaluation estimate. If that doesn't work, maybe your problem is the location of your property.. Do a simple study on the neighbourhood & the surrounding properties. If it is clear that the neighbourhood is losing value in general, it might be a good idea to consider selling now & cutting your losses now before you experience any further depreciation.
Having said that, I still dont believe that your property has lost value as a result of the depreciation of the location. I firmly beleive that cleaning up your yard & giving the place a new coat of paint will dramatically increase the value of your property. Perhaps plant new plants & flowers to add colour to the property which will give an inviting feel to the home. Heres a very useful tip which was proven on a tv show I saw once: Next time you have a prospective buyer come around to view your property or even if you have an agent come around to evaluate the property, bake a cake in the oven & have the smell fill through the house. The homely fragrance of freshly baked cake has an effect on us all & it helps more than you will beleive.
Good luck
2007-03-19 19:34:01 · answer #2 · answered by Claude 6 · 1⤊ 0⤋
See if you can get a bank to carry you or come up with the extra coin (ask for help from friends and such), tell the morgage company you need to extend the loan or you are defaulting (let them get you through collections- screws your credit over, but....) or your last option- unload it, pay off what you owe and cry about the lost money.
Never ever finance for 2 yrs, it gives you very few options and in the end the bank gets it- usually.
2007-03-19 19:23:07 · answer #3 · answered by Harmon 4 · 0⤊ 0⤋
Do you really have to refinance? If not then don't.
If you do, for example you got a horrible 2 year I/O with a balloon [I sure hope not]. then you need to look at contacting the Loss Mitigation department and asking for a loan modification or some other work out option.
2007-03-19 19:25:16 · answer #4 · answered by William E 2 · 0⤊ 0⤋
Burn it down without getting caught....seriously my mom is in the same situation and her they raise her mortgage payment bye like 120 dollars every 6 months, she will reach her cap soon, but right now she is paying1825, and that's at 7% interest. The cap is 29%. She can't sell or refinance, because her house is "too big" and out of place in the neighborhood's it in, and the banks wont finance, or re-finance it. Good luck to you, I know what a ***** it is.
2007-03-19 19:22:48 · answer #5 · answered by DnBprincess850 5 · 0⤊ 1⤋
hi, i liked tadow' s answer no. 1,3,and 4. i would find a partner fast to help in. or get a gov grant.fast. to pay the loan. with a partner, both income can support a refinancing for a fixed 30 or even 40yr loan.
2007-03-19 19:38:00 · answer #6 · answered by charlie 5 · 0⤊ 0⤋