1/3 of Atlanta Homeowners Underwater
1 out of 3 Alanta homeowners owe the bank more than their home is presently worth according to statistics released by CoreLogic.
FROM THE AJC:
"Numbers released this week show that 34.5 percent of all local homeowners owe more on their loans than their homes are worth, or underwater. That’s down from 35.7 percent in 2010. The national average for underwater loans is 22.1 percent."
IF UNDERWATER YOU HAVE OPTIONS
What are your options if you have to sell your home at a time when you are underwater on your mortgage
1. Bring cash to closing (yea, I know, this is not realistic for most of us)
2. Keep the house as a rental until home values start to rise again ( think 2018-2021 as a time line for this option)
3. Do a short sale. This requires your lender to accept less money than you currently owe on the mortgage loan. The process requires you to contact your lender and start the process. Your real estate agent can pick up the ball from there and work out the details. Most real estate agents who do a lot of short sales work with an attorney during the process. The cost to you....nothing, nada, zero. Will you have your credit dinged in the process...yes. But the ding will be no where near the hit you would take if you allow your home to go through foreclosure.
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