Question by Krista C: What options are available for those of us paying our mortgage but hm is now worth less than the borrowed amt?
I bought my home 2 years ago for $ 339,000, it was appraised at that time at $ 375,000. Now, only 2 years later it is only worth $ 275,000 according to Zillow.com. My husband and I are doing everything possible to pay the mortgage, cutting back on other things to be able to keep our home. So what government stimilus is available for those of us who are still paying the mortgage on the original home value? Shouldn’t we be able to refinance at the valued home price?
Answer by acermill
Of course not. Why should the lender swallow a $ 64,000 loss just because your home value decreased? That you are struggling to pay the mortgage has no bearing on the current value of the property. Were the property still worth $ 340K, you would STILL be struggling to make the payments.
As well, you might consider that Zillow can be anywhere from very accurate to 40% off on home values. The only way to know what your house is worth is to have it professionally appraised at current market value.
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