Many people with an underwater mortgage have been very frustrated in their situation and it’s obvious to see why. Homeowners who owe more on their home than their home is actually worth are probably frustrated when it comes to their home loan. Some have even become so angry that they have just walked away from their home altogether.
Many people who plan to default or strategically default on their home loan feel that they are left with few options outside of doing so. This is actually an error and can be very detrimental to someone who simply walked away from their mortgage. Short sale options and in some cases principal reductions are available for homeowners and underwater mortgage.
While shortselling a home can hurt a homeowners credit score some, it is more beneficial than defaulting. There have been reports that say if a homeowner defaults it may take as long as eight years in order for them to qualify to buy another home. Short selling, on the other hand, can help a homeowner get out of an underwater mortgage without doing irreparable damage to their credit score.
An underwater mortgage is a difficult situation and is quite frustrating for homeowners. However, a homeowner should not consider defaulting on their home loan because there are other options available that can make an underwater mortgage more affordable or, depending on what lender a homeowner has, they may be offered a principal reduction.
Homeowners with an underwater mortgage have been advised to contact their lender in order to see what options they may have in dealing with their underwater mortgage situation.