Underwater & Negative Equity Solutions
Owing more on your mortgage than your home is worth can feel overwhelming. We specialize in creative solutions that help homeowners with negative equity find a way forward without devastating their credit or finances.
What Does It Mean to Be Underwater?
A homeowner is considered underwater or upside-down on their mortgage when the outstanding loan balance exceeds the current market value of the property. This can happen due to market downturns, purchasing at the peak of a market cycle, or taking out additional loans against the property. Being underwater does not mean you are out of options — it means you need a strategy tailored to your specific situation.
Short Sales and Lender Negotiations
One of the most common solutions for underwater homeowners is a short sale, where the property is sold for less than the mortgage balance with the lender's approval. Lenders often prefer a short sale over foreclosure because it typically results in a better recovery for them. The process requires negotiation with the lender, proper documentation of financial hardship, and an experienced agent who understands how to navigate these complex transactions.
Protecting Your Credit and Future
The impact on your credit varies significantly depending on which path you choose. A short sale generally has less impact on your credit score than a foreclosure, and the recovery period is typically shorter. In some cases, other alternatives may be available depending on your lender and circumstances. Our goal is to help you understand all your options and choose the one that best protects your financial future.
How We Help
A Property We Helped
15605 Markham Dr, Clermont, FL 34714
The owners of the property were in need of moving after unfortunate life circumstances of losing their daughter. Their property was not able to be listed because the property was worth less than they owed on their mortgage and they couldn't afford to pay the fees. We then were able to talk with the homeowners and figure out a solution for them to find a buyer, help save their credit, and help them to restart their life.
Found a buyer, saved the homeowners' credit from damage, and helped them restart their life after a devastating loss.
Let Us Help You Find a Solution
Every situation is unique. Contact Michael for a free, confidential consultation to discuss your options and find the best path forward.