The first thing you need to do is ask yourself if you had plans to move before you heard about the house prices dropping in value. If you plan to stay in your home for years to come, then you shouldn’t be as worried as someone who needs to sell their home. You have the advantage of time.
You see, all markets are cyclical, meaning they all go up and down. The reason for this is they self adjust. What we have been seeing is some of the markets where prices went up very fast and high are now coming down. This is where most of the foreclosures are happening. The areas were not able to sustain the growth that occurred. The market is balancing itself and house prices are coming back down to what the market can sustain.
In general, real estate prices go up over time. That does not mean you will see an appreciation every year. But, if you look at the prices in the area over the last 10 to 20 years, prices will have increased over that time.
If you do not have plans to sell your home, then you shouldn’t be losing sleep about house prices in your area. Yes, it’s a concern that prices have fallen. For you, it’s not an immediate concern because you don’t need to sell.
If you owe more than your house is worth, your income has remained the same, and you are able to make your monthly mortgage payment, then you should not worry. Yes, it’s annoying that people around you are looking for loan modifications because they can’t afford their home. Many things in life are annoying. If you are someone whose income has not been impacted by the current economy, then you should continue to make your mortgage payment.
Now, if you are someone who has a loss of income and can no longer make the mortgage payment, you have some decisions to make. The first is to look at all of your finances to determine if you should sell the house. If you decide to keep the house, you need to look at where you can save some money. Maybe you need to sell the new car, the flat screen TV, or shut off the cable. You are obligated to make your mortgage payment.
People who have the income to support their mortgage payment should keep making their mortgage payment. Yes, even if the value of homes in your area have dropped recently. Think about it this way, if you bought stock in a company and the stock price then dropped, that company does not come back to you and bail you out. You shouldn’t expect to be bailed out of your mortgage either. You are obligated to make your mortgage payment.
If you are one of the many homeowners facing foreclosure, and you can t make up the back payments, and the bank won t work with you, then you know that you must sell the house. By selling the house, you avoid having a foreclosure in your credit history, you ll only have missed payments which will eventually come off your credit report.
There are many investors who will buy your house when you are in foreclosure. Investors have creative ways of buying houses when others will tell you no . Real estate agents may not help you because they don t see how they can get a commission. That s why you need to contact a real estate investor. Real estate investors have creative ways to buy the house so that you can move on with your life.
Author Resource:
For more tips, request your Free Report titled "How to Sell Your House Fast in Today's Market" at http://www.EmeraldHouseBuyer.com
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