After the economic meltdown that occurred in 2007 and 2008, many homeowners have found themselves struggling to pay off their underwater mortgages. As the threat of foreclosure looms, they worry about the fallout that could occur if they lose their homes. This threat of foreclosure sometimes takes over their lives and leaves them stressed almost to the breaking point.
There is little doubt that the future can seem bleak to any homeowner whose residence has lost significant value over the past five to six years. For those living in Florida, it may be even worse as the state has the dubious honor of holding some of the highest number of devalued properties in the nation. However, there are options available that do not have to lead to a total loss of money.
One of the smartest methods taken by people who owe more on their mortgages than their homes are currently worth is the short sale. Banks have loosened their heavy regulations in recent years, allowing short sales to become readily available. Though homeowners who are close to paying off their mortgages are not usually ready to take this step, those who owe quite a bit may find it an appropriate measure.
Another possibility for those worried about the threat of foreclosure is to re-evaluate how they can maximize the value they have built as well as economize their income. Loan assistance may even be available. When all else fails, a call to the lending institution could prove beneficial. Lenders are accustomed to working with mortgage holders and will often offer modifications that can keep people in their homes. It may be the right route to help a Florida family skirt the threat of foreclosure,
Source: news-journalonline.com, Area homeowners struggle with underwater loans, Mark Harper, Oct. 20, 2013