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Negative Equity | 3 Ways To Recover From A Difficult Situation

Negative Equity | 3 Ways To Recover From A Difficult Situation

Having negative equity in your house is a nightmare coming to life. It doesn’t just drag down the value of your property, it also affects your overall financial standing. The equity becomes negative when the mortgage still owed is bigger than the actual value of the house.

This lessens your chances of getting a good sale price for the property when it is time to relocate to secure a more stable employment or if you don’t plan on staying longer in your current home. This is considered a common situation for most homeowners across the country due to factors that may be out of their control.

According to the report made by realtytrac.com, “Nationwide 6.7 million properties representing 12 percent of all properties with a mortgage were seriously underwater at the end of the first quarter of 2016 – down 600,000 from a year ago and cut nearly in half from the peak of nearly 13 million in the second quarter of 2012. Despite home prices rising 47 percent since bottoming out in February 2012, some homeowners are still waiting for the home price tide to lift them back to home equity dry land. Here are the top seven reasons homeowners are still underwater based in our big data analysis of 56 million U.S. properties with a mortgage.

3 Ways To Pull Up Your Equity

We Buy Houses Cash Los AngelesWith the reality of this matter that affects a lot of households, both the government and financial experts and agencies have laid out ways to help pull up and improve home equity.

Refinancing Your Mortgage

When you struggle with the mortgage payments on your home, the greatest fear is losing your home to foreclosure. Refinancing could help lower the monthly due and provide some form of relief, but most lenders aren’t open to refinancing a property with negative equity. There are other related blogs in sellanyhouse.com.

There is a government program that enables some homeowners to refinances their house that has negative equity. The Home Affordable Refinance Program (HARP) may grant homeowners a loan to refinance to a more affordable payment. The homeowners must file an application to HARP to avail of the program and the loan must be underwritten by a lending team.

Move Out, Rent It Out

Families are eager to buy a house especially if it gives them extra space and room to move around. Since the option to sell house fast in Los Angeles isn’t available to properties with negative equity, one workaround is to rent it out and move into a new house. By renting out the property, it can pay for itself.

But renting a house isn’t simple and doable in one day, especially if you do not have an experience in being a landlord. You need to conduct thorough research on the matter and talk to an experienced landlord for advice and guidance.

Reduce Your Debt

This is probably the most basic and practical solution to increase your home’s equity. Slowly but consistently, pay off the debt you owe. One of the best ways to pay down your mortgage is to pay more than your monthly payment each month. When you do so, all that extra money goes directly towards paying down the principle loan, not to interest. If you have savings you can use to pay off some of the mortgage dues, take a portion of it and lower the debt. Some lenders may allow you to pay off up to 10% without penalty, and smaller repayments are deemed helpful. Contact your lender to make sure.

Consider Outside Help

SellAnyHouse LA is a home buying company dedicated to help homeowners who are struggling with their finances. We buy houses in Los Angeles from families facing common housing issues, even the most serious and difficult matters. Whether it is a house underwater or with negative equity, we find ways to help alleviate the situation. Check out what other housing problems we can help you with by visiting our recent news article at from www.sellanyhouse.com.

We also provide free in-house consultations to those who want to learn more about our fast and hassle-free transactions. We have a team of real estate consultants willing to impart their knowledge and expertise in the real estate market. If you need help, don’t hesitate to contact us! We are happy to help!

Also, check out http://sellanyhouse.com/ for the latest information.

By | 2017-05-10T02:30:13+00:00 May 16th, 2017|Article, Pre-Foreclosure|0 Comments

Top 4 Ways To Turn Your House Into A Profitable Asset

Top 4 Ways To Turn Your House Into A Profitable Asset

Your house is your fortress. It’s where you keep your army of children, your weapons of comfort living, your sanctuary in the buzzing city, and the trophy of all your hard work. For many, it is the biggest investment one could ever own in their lives.

However, like most homeowners in the country, a house is a liability as well. A big chunk of our paycheck goes to the mortgage, a monthly financial obligation that doesn’t have room for missed payments, or else the bank will it take away. And despite the large amount being invested in the property, it doesn’t generate income or cover for the expenditure itself.

A Self-Sufficient, Income-Generating Home

Unfortunate cases with such endings as a bad mortgage, recent job loss, or family business closing all can result in the need to liquidate assets. This, in turn, could lead to families needing to sell their house fast in Los Angeles. With this growing need,  SellAnyHouse LA has come up with realistic and practical solutions to address some of the most common financial problems’ causes.

But before we dig further into the benefits of a fast home sale, first let’s look at the top ways to turn your house from a liability into a profitable asset:

Rental Gains

We Buy Houses Los Angeles CAOne of the best ways to profit from your own home is to rent out a portion that is unoccupied, unused, or any extra space that can be useful to people who might need a small workplace. The basement is one good example. By creating a separate entrance to the basement, you can rent it out as a storage place, a work studio for artists, or a music studio for aspiring musicians (although, you may have to invest on soundproofing the basement to keep the noise down).

Grow Your Own Food

There is no limit to where your imagination can take you. Having a spacious backyard can work to your advantage. Try converting it into a small produce farm, grow fruits and vegetables. This way, you can feed your family with healthy food while saving on your groceries. Additionally, you can sell some of the produce in the local market.

Start A Small Business

Online selling is rampant nowadays due to the massive use of modern technology and the internet. If there is an artist in you and you have a pile of artworks and paintings hidden in your storage room, sell them online. Start selling children’s clothing if you have the knack for designing and sewing clothes for toddlers. Or you can purchase clothes in bulk and start up your online store.

Drop shipping is also a good alternative. It is a supply chain management method in which the seller does not keep goods in stock. The seller transfers customer orders and shipment details to either the wholesaler or another retailer, who ships the goods directly to the customer. Learn more about this process here.

The Good Old Yard Sale

Got unused clothes, furniture, and appliances getting dust somewhere in your house? Well, sell them off through a yard sale. This is a good way to earn extra income to pay off some of your liabilities while freeing up space in your house. You can also work with your neighbors and organize a group yard sale within your community. You aren’t just helping yourself, but your neighbors as well.

There are other means of generating extra income if you have the resources. Check out the other blogs at www.sellanyhouse.com.

It Doesn’t Have To End With Not Having Any Money

Although money is a problem when the expenditures exceed your earnings, life doesn’t have to end there. There are more ways to convert your house into a profitable asset. Check this guide article for more helpful ideas.

But what if you have tried several ways to help pay off the mortgage yet you’re still struggling with your finances? How will you be able to turn it into a profitable asset? Sell Any House has a simple solution for you. We buy houses in California from homeowners in need of a rush sale. If you need the money, you wouldn’t have to wait for weeks to get it, you can have it in as little as 5 days! It’s easy, fast, and free!

Let us know if this offer sounds like the solution you have been searching for.

By | 2017-05-10T02:20:07+00:00 May 10th, 2017|Article, Need Money|0 Comments