How to Get Out of Negative Equity
The economic recession has put stress on every sector. The sector being affected most by the recession and now the subsequent recovery in the housing market. Factors beyond a homeowners control have forced many into a negative equity situation with their home. This is an area you definitely want to avoid.
First, negative equity simply means you owe more on your house than what it is worth. This makes it difficult to sell, rent, remortgage, and whatever else you may want to do with the property. Ultimately, the goal then is to return the property to a point of it being worth more than you owe. There are a few things to attempt to make positive equity happen faster. -Pay more house payment each month than normal. This will bring the loan amount down in a shorter period of time -Make some improvements to the property. After completing this, get a new appraisal. -Be patient. Making each monthly payment on time will bring the loan amount down over time. -See if the bank has any special products. Some banks won’t look at this play because they believe they are putting you in a worse plan than you were with new higher payments. For other creative methods to return negative equity to positive, possibly for remortgage, see a remortgage specialist as soon as possible.