Do you owe more than your home is worth?

One of the side effects of the downturn in real estate prices over the last seven years is that many homeowners who bought their properties at the height of the real estate boom now find themselves owning more than they can get for their properties if they were to sell them. For homeowners looking to stay in their homes for the long run, this is not as much of a problem. However, for homeowners struggling to pay their mortgages or who have to relocate for business or family reasons, this situation can be devastating.

The Riverside California area has been particularly hard hit, with property values down 43 percent from their highs in 2006. Although the past year has brought a substantial increase--28 percent compared to 2012, your property value still has a lot of ground to make up.

Options for an Under Water Mortgage

If you're struggling to pay your mortgage, there are ways you can lower your monthly payment and/or sell your property without facing foreclosure or bankruptcy.

• Loan modification -- With a loan modification, your lender agrees to modify or change the terms of the original loan agreement. Usually, this means lowering the interest rate, but it can also mean lowering your monthly payments, but expending the life of the loan. However, according to a new report from the OCC, nearly 50 percent of homeowners with modified loans are still n danger of foreclosure.

• Short Sale -- A short sale is when a lender agrees to accept sales proceeds less than the amount due on the mortgage loan. Instead of the homeowner still owing the difference between the sale amount and the loan amount, that balance is forgiven.
  
  
• Refinancing -- Refinancing is still possible, even when you owe more on your mortgage than your home is worth. If you'd like to take advantage of current historically low interest rates and save on your monthly mortgage payment, we can help.

If you've been struggling with paying your Riverside area mortgage and are frustrated with the bank's slow responses and unwillingness to work with you, we can help. Call Luis Carrillo at 951 223-5847 to discuss your options.