Eric Mitchell Real Estate

Options If Your Mortgage Is Underwater Owing more money on your mortgage loan than your home is worth—commonly referred to as being “underwater” on a home mortgage—can seem hopeless. There were 6.7 million underwater homes in the U.S. at the end of the first quarter of 2016, representing 12 percent of all properties with a mortgage, according to RealtyTrac. The numbers are dropping since a peak of 12.8 million homes in 2012, when 28 percent of all properties with a mortgage were underwater. For people still underwater, those numbers don’t offer much solace. However, there are some options for underwater homeowners, including: Short sale:  If you have to sell your home, a short sale may get you the most money. Your lender has to agree to let you sell it for less than you owe, which may lead to the home being sold quicker than it would otherwise. Your lender must agree to the lower price, and it will take the loss, and your credit score will fall. Lenders can also rej...

What Is a Negotiated Debt Settlement? If you’re buried by credit card debt, a negotiated debt settlement with your creditor may be worth checking into. Negotiated debt settlement is a general term for discharging debt in a way that appeals to the credit card holder and the card’s issuer. It’s best to negotiate from a position of strength by not having submitted late payments or having missed them, which can cause a credit score to fall. If that happens, cardholders will likely have a harder time getting concessions in a negotiated debt settlement. Instead, they should start talking to their creditor soon after realizing they’re having trouble repaying their debts. -Forbearance There are a few types of negotiated debt settlements, and the simplest one is called forbearance. Banks offer these programs to reduce interest rates, waive late fees and extend repayment terms. Forbearance doesn’t forgive any debt, but offers better terms for repayment. Unemployed cardholders ty...