With an upside-down loan, the collateral that secured the loan is worth less than the money owed on it. This is relatively common during the early years of car loans because cars depreciate so rapidly that it is easy to owe more on a car than it is worth.
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An upside down mortgage is also known as negative equity. If you did not make a down payment when you purchased your home or if you made a very low down payment, you may have negative equity in your home. This results from depreciating home values.
Walking away from a mortgage has many negative consequences. There are times, however, when it is unavoidable. When a mortgage is upside down or underwater, it might be the only option available to you. You have an upside down mortgage when your mortgage loan is more than the value of your house.
Reverse mortgage loans typically are repayable when you die, but may need to be repaid sooner if you no longer use the home as your.
Declining home values are even tougher to take. Some 16 percent of American households – one out of six – are underwater, according to Moody’s economy.com. Among those who bought a home in the last five years, nearly a third (29 percent) owe more on their homes than they are worth, according to Zillow.com.
The federal government’s Principal Reduction Alternative provides financial incentives to lenders who agree to reduce the amount of money that upside down homeowners owe — their principal balances — on their mortgage loans. Not all homeowners can qualify for this program, though.
An upside down loan is a loan for more than your car or house is worth. Find out how loans end up that way and what to might be able to do about it.
Non Prime Mortgage Lenders How we can help. For over 20 years nationwide Mortgage has been helping borrower’s purchase and refinance their properties. Non Prime, or what is thought of as, "Hard Money" is primarily for consumers with one of the two circumstances.
Upside Down On Mortgage – Visit our site to determine if you need to refinance your mortgage, we will calculate the amount of money a refinancing could save you. There are many reasons why home owners show interest in a loan refinance home loan.