Today we want to focus on one resolution for how you can LIVE SMART in 2012: Get right-side up.

Over a quarter of homeowners in America owe more than their home is currently worth. While getting “above water” on these “underwater” properties is a lot easier said than done, we have some tips to help you stop treading water and start floating.

  • Take advantage of the many federal underwater refinance programs such as HARP or Hardest Hit Funds (a program designed specifically for houses located in one of the states on this list.
  • Be assertive and try to get a loan modification. Even if you have already tried to get a loan modification and have been rejected, and even if you require the assistance of a non-profit credit counseling program such as NACA’s Home Save Program, try to get a loan modification. Be a “squeaky wheel” and keep trying until you are able to get the assistance you need.
  • Consider getting a second job or renting out a room in order to pay down your balance or catch up on payments.
  • If all else fails, put your home on the market as a short sale (but talk to us first!). Don’t forget that the federal income tax exemption on mortgage debt that is forgiven through a foreclosure or a short sale will expire on December 31 of this year. Consequently, banks are taking about 2 years after the first missed payment to foreclose on properties.  When you list your property with an agent as a potential short sale,  the possibility of avoiding the income tax implications that come with walking away from a home is increased. 

Still looking for other ways to help get “Right-side up?” Give us a call today. We are committed to helping you Buy. Sell. Live. SMART!

Seth & Alyce

​Information courtesy of: “4 Real Estate Resolutions for 2012.”  Real Estate Reality Check: Tara-Nicholle Nelson’s Blog. Ed. Trulia.