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Posted January 23rd, 2012 under Underwater Mortgage

Underwater Mortgage? Help Yourself, Help the Economy

Tags: underwater home, underwater mortgage, underwater mortgage help, mortgage help, underwater homeowners, underwater homeowner help

Underwater Mortgage? Help Yourself, Help the Economy

Did you know that the average American moves every 7 years?  That movement – buying, selling – helps drive a healthy real estate market. And a healthy real estate market helps drive the U.S. economy.

One could argue that economic recession caused the housing market to collapse (Americans lost jobs and so were unable to afford their mortgages).  Or you could say that the housing market crash caused the economy to slump.  But it doesn’t really matter whether the chicken came first or the egg; what’s important to remember is that a healthy real estate market = a healthy economy.

This is where you come in. If you have an underwater mortgage (more than half of Arizonans and a third of all Americans do) you’ll continue to be underwater for many years to come, maybe even a decade.  That means for the next ten years (or more, or less) you’re paying every monthly into a piggy bank with a whole in the bottom.  You’re not building any equity. You’re not paying for goods or services made by Americans hard at work. 

Nope, you’re just feeding your hard-earned money to the bank, which isn’t turning around and lending it out to grow the economy like it should be, just storing it in a vault somewhere.  So staying in your current situation (paying more for your house than what it’s worth) is not helping you, it’s not helping your family, and it’s not helping the economy.

Does it seem far-fetched that your underwater home is affecting the entire U.S. economy?  Consider this:

 Underwater Homeowner Mortgage Help Yourself Help the Economy

If you view your homeownership as a financial engagement, like a business views its mortgages, you’ll see how your choices impact our economy. As a homeowner you’ll either make money (stay above water and build equity) or lose it (pay too much for your home into the piggy bank with a hole at the bottom). It’s time to think like a business.

When a business is in financial trouble it looks for ways to save money (or at least stop losing it). Sometimes the business files for bankruptcy or defaults on its mortgages. Either way, the business usually emerges financially rejuvenated. The economy also becomes rejuvenated as those businesses restructure debts more sensibly (so they can rehire employees) and get new mortgages.

If you want to be financially rejuvenated, too, then let’s look at your options. You could 1) get above water on the mortgage you’re in with a loan modification; or 2) get out of your unworkable mortgage (and, eventually, into one that does work) through a short sale or foreclosure or strategic default.

We won’t know what the right decision for you is until we get to know you and your unique situation, but we can say with certainty that the sooner you get back to a place where homeownership works for you financially, the sooner the U.S. economy will get back on track.

Learn about your options and the potential pitfalls you must understand with the Homeowner 101 Assessment & Action Plan.  Get empowered to help yourself and the economy, sign up today.