07/26/2022
What is home equity?
In the simplest terms, your home's equity is the difference between how much your home is worth and how much you owe on your mortgage.
For example, if you purchased your home for $250,000 and it’s currently valued at $350,000 that means you would have $100,000 in home equity. Although this is a “paper gain” it can be realized when you sell your home. Your home equity proceeds would be given to you in the form of a cash check at closing.
However, in the unfortunate event you can no longer make your mortgage payments, and fall behind, and the mortgage company or bank repossesses your home, all that equity is lost. Don’t let this happen to you like it did to so many homeowners during the last downturn in 2008 – 2010.
If you are having trouble making ends meet like so many people, due to high cost of living, or unforeseen circumstances, don’t let the mortgage company or bank repossess your home and go into foreclosure. The best thing to do is to sell your home to realize your equity cash gain. So, either you sell your home and keep your equity, or the bank takes over possession and sells it for themselves, and your equity is lost forever.
Either way, your home is sold. So, take your money and move on. You can use this money for a larger down payment on the next home, which would potentially lower your monthly payments over the life of the loan, pay off your debts in order to lower your monthly expenses, or both.
If you are having a difficult time making ends meet, give me call and I can help you determine your equity position, and help sell your home to collect your equity so you don’t lose it. I am here for you.
