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SELLERS SIX OPTIONS IN NEGATIVE EQUITY SITUATIONS
1. Pay your mortgage as agreed(possibly throwing away bad money after bad-hoping for a quick turnaround or simply doing nothing). It is estimated it will take 20+ years to reach year 2005 pricing again.
2. Try to get a loan modification(easier said than done but possible-however over 60% of loan mods re-default in first year due to lack of principle reduction)
3. Try to do a Short Sale (Becoming commonplace- and though still lengthy and challenging- Short Sales are the new Norm)
4. Rent your home out to a tenant(you will most likely not be able to cover the monthly mortgage with the rent and have negative cash flow)
5. Walk away from your home(a Option for some -though there is still some negative social stigma attached, however this "stigma" is on the severe decrease)
6. File Bankruptcy – A complicated process-There may be some advantages and disadvantages- please consult a qualified CPA and Bankruptcy attorney.
Dont feel too bad, So many others around us are in the same situation!
what was once a scarlet letter is now a badge of honor. It is a accepted part of our local economic situation.
Please give us a call or send us a email to schedule a appointment to discuss your options. It is very important that you have all of the information so you can make the best educated decision for yourself and your family.
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