Whether you overpaid for the property in a bidding war, you’ve fallen behind on mortgage payments, or property values have dipped, being upside-down on your mortgage is a less-than-ideal situation for homeowners.
The phrase “upside-down” is commonly used in the context of being “upside-down on a mortgage” to describe a situation where the homeowner owes more on their mortgage loan than the current value of their home. It is a figurative expression that depicts an inverted or flipped orientation, indicating that the homeowner’s equity position is in a negative state.
The term “upside-down” is used metaphorically because, in a traditional financial arrangement, homeowners expect their property’s value to appreciate over time, gradually building equity. When the mortgage balance exceeds the current market value of the home, the normal progression is reversed, leading to a negative equity position. In this sense, the homeowner is metaphorically “upside down” or in an unfavorable financial position regarding their mortgage.
This phrase has become widely adopted in the real estate industry and commonly used to describe such scenarios succinctly. It conveys the fundamental concept of owing more on a mortgage than the property is currently worth, encapsulating the financial predicament faced by homeowners in a concise manner.
If you are upside-down or owing more than the current market value and circumstances force you to sell your house instead of waiting out a market turnaround for values to rise, you may feel backed into a corner. Understandably you don’t want to make a costly misstep when faced with this dilemma, so exploring your options is helpful.
With so many decisions ahead, being fully informed and weighing the benefits of each will help you feel confident in the action you take. So read on as we explore four things you can do if you are upside-down on your mortgage in Ohio.
1) Assessment
The first thing you can do if you are upside-down on your mortgage in Ohio is to get a realistic picture of where you stand. Then, contact your lender for the amount owing on the mortgage and schedule a professional appraiser so that you’ll work with exact numbers. A documented and professional assessment of the property value, which can be shared with the lender, potential buyers, and other parties involved in the process, helps substantiate the homeowner’s claim that the property’s value has declined below the outstanding mortgage balance.
Professional buyers like those at Homesmith want you to make an educated decision about your future, so they’ll compare what you could earn from listing vs. our offer to buy your house directly as-is for cash, and you can skip the prep, cleaning, and repairs. At Homesmith, our professional buyers provide all the details used to calculate our offer because we want you to agree it is fair and feel good about working with us long after closing.
2) Short Sale
Naturally, you want to try every option if you are upside-down on your mortgage in Ohio; while a short sale has some consequences, they don’t compare to the fallout from claiming bankruptcy or a foreclosure on your credit record. Direct buyers typically have experience in negotiating with lenders and can assist in navigating the short sale process. Professional buyers like those at Homesmith are highly seasoned negotiators who can work out a short sale with your lender. They can take on the responsibility of negotiating with the lender on the homeowner’s behalf, and work to convince the lender that a short sale is the best option, emphasizing the financial hardship and the potential benefit of avoiding foreclosure. A direct sale to one of our professional buyers at Homesmith makes it easy to solve your home selling troubles in Ohio.
3) Pay the Difference
Another thing you can do if you’re upside-down on your mortgage in Ohio is to sell the property and bring the amount owing to the closing table to pay off the remainder of the mortgage. But there are other options to consider before deciding to pay the difference. With a direct sale of your Ohio house to professional buyers like those at Homesmith, you’ll get a fair value and won’t pay any hefty real estate commissions. At Homesmith, our professional buyers operate with total transparency. At Homesmith, there are no hidden fees, and because of our full-service in-house team of industry specialists, you won’t pay any closing costs, and we can provide you with a fast, guaranteed closing day. Or talk to your professional buyer from Homesmith about selecting the best calendar date for your closing.
4) Sell Your House To Homesmith
Our professional buyers at Homesmith are the best option if you are upside-down on your mortgage in Ohio and need to sell. At Homesmith, our professional buyers at stop everything and listen to sellers to help find the best resolution for your situation. Feel free to ask us any questions or express any concerns you may have about the process of a direct sale of your Ohio house.
At Homesmith, we are your neighbors who live and work alongside you in the Buckeye State, and we are proud of the work we do helping Ohio sellers with unique and individualized solutions, one seller and one property at a time. So why not learn more about the difference a direct sale of your house can make by talking with a professional buyer from Homesmith for yourself without obligation? Contact Homesmith online or give us a call at (614) 401-3651 or toll free at (877) HOMESMITH.