Posted on: 02nd May, 2010 09:29 pm
I got 5/1 arm for a 455 k house with 10% down. Now the house value has gone down 15%, with 3 yrs remaining on the arm. What should be my strategy for the next three years? Should I build equity in the house or foreclose? It does not look like we are going to gain back 15% in three years.
Thanks,
- SB
Thanks,
- SB
Hi SB,
It is quite difficult to build 15% equity in your property in 3 years. If you want to save the house, then you should apply for a loan modification with your lender. In case, you want to get rid of the property, then you will have to apply for a deed in lieu of foreclosure. This is a better option than foreclosure. You won't have to pay the deficient balance resulting from the sale of the property. Your score would, however, get reduced by 250 points.
It is quite difficult to build 15% equity in your property in 3 years. If you want to save the house, then you should apply for a loan modification with your lender. In case, you want to get rid of the property, then you will have to apply for a deed in lieu of foreclosure. This is a better option than foreclosure. You won't have to pay the deficient balance resulting from the sale of the property. Your score would, however, get reduced by 250 points.