Underwater Mortgage Debt and Your Coral Gables Home
If you are wondering how and if this applies to your home, continue reading.
If you needed to move for job relocation, marital status changes, reasons relating to illness or because of needs relating to military service, but couldn’t because of the inability to sell your home, you can benefit from this change. Deed-in-lieu transactions are being offered to struggling home owners who are current on their mortgage or less than 90 days late on their payments.
Sounds great, right? It does, but it’s important to note that there are rules and consequences.
To qualify to turn over your home without penalty, your monthly housing payments must equate to 55% or more of your monthly income and you must prove documented “hardship.”
Also, the home cannot be damaged and must be relatively clean.
There are several benefits to this option. For starters, the decision-making process can progress more quickly and simply. That allows properties to remain in good condition, which in turn, helps to stabilize neighborhoods. In some cases, borrowers may even receive financial relocation assistance.
While this solution does not fit everyone’s needs (since it could require use of retirement funds to pay part of the loan balance) and is only valid for use on primary mortgages, it can definitely be of help to some. You can find out more about the deed-in-lieu alternative by clicking here.
The best advice if you’re underwater on your mortgage is to take action. Call us today at 305-491-7179 or send us an email with all of your questions to firstname.lastname@example.org. We can help.