Posted on: 26th Mar, 2010 12:36 pm
Why do home owners whose houses are worth less than the balance on their mortgage need help?
Hi gfarr!
Welcome to forums!
If the property value is less than the balance on your mortgage, it means your property is underwater. You have a negative equity. You'll have to pay more to the lender than your property value. Moreover, if you plan to sell off the property, then you'll have to do so at a lower price. Thus, you won't be able to pay off the loan though you sell off the property. Thus, you would require help in order to get rid of the property and this situation. As most of the borrowers has lost their job due to the rescission, lenders offer loan modification help which helps the borrowers to get a reduced interest rate. This helps them in paying off the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the property value is less than the balance on your mortgage, it means your property is underwater. You have a negative equity. You'll have to pay more to the lender than your property value. Moreover, if you plan to sell off the property, then you'll have to do so at a lower price. Thus, you won't be able to pay off the loan though you sell off the property. Thus, you would require help in order to get rid of the property and this situation. As most of the borrowers has lost their job due to the rescission, lenders offer loan modification help which helps the borrowers to get a reduced interest rate. This helps them in paying off the loan.
Feel free to ask if you've further queries.
Sussane