Hi neighbors,

As discussed in yesterdays post Negative Equity Runs Rampant, many Americans are finding themselves facing negative equity or owning more on their homes than what they are really worth.

If you have found yourself in this position you may ask, what now? There are a few options available for those who are struggling to make payments due to uncontrollable circumstances and without a loan modification. Those options are:

Walk out - It has been found that 26% of people have decided to stop paying on their mortgage. Their equity shortfall determines whether or not they're going to leave or not. Data shows most owners owe approximately 20 percent more than what their home is actually worth. In addition, it has been found that abandonment is more acceptable among the younger generation (people under 30).

Become a Landlord - For those who view walking away from a mortgage as wrong or unethical, they may end up renting out their home hoping for the worse to pass.

Short Sales - There's always the option of selling your home less than what's owed on the mortgage.

Selling your home? Contact Zac!