A few months ago I began writing for Improvementcenter.com. Since I know that so many of you are either new homeowners or always looking for answers around financing questions check out a few of my articles. Click on the links for more tips in each article! Enjoy!
Rent Your House; Move Into A Cheaper Apartment: This is becoming a common way for distressed homeowners to stay afloat while paying down the mortgage; you have someone paying your rent to cover your mortgage payments while you save money living somewhere less costly.
Improve your credit score. This is perhaps the best way to lower your mortgage payments and upfront loan costs. Check your credit score and rectify any issues such as outstanding collections, judgements or high loan balances. This puts you in a position to reduce your points and your interest rate.
Home equity line of credit (HELOC): This is a line of credit based on the equity in your home. For example, if you owe $250,000 on your home but it’s worth $350,000, then you have $100,000 available to you in the form of a HELOC. This process can take some time: you’ll need to have a home inspection and go through a closing process similar to what you went through to buy your home in the first place.
Deed-in-lieu-of-foreclosure: This option is for homeowners who have already been unsuccessful selling their homes via bank or government short sale processes. It allows them to transfer the property back to the bank to satisfy the debt. Keep in mind, however, the effect on your credit is just as bad as any other similar arrangement (short sale, foreclosure), and the points you lose depend on the current status of your credit.