Health for Body Mind and Soul

If you are one of the millions of homeowners who owe more than their home is worth – “underwater, I am sure your outlook must be a little bleak especially as you do not anticipate the prices rising anytime in the near future. In fact it is predicted that by 2011 the price of homes in the large metropolitan areas will drop 42% from their peak (White, 2009).

Despite the hardships that millions of homeowners who are “underwater” on their mortgages experience they still dutifully make their payments each month. This is contrary to popular belief that many people are walking away from their homes even in “non-recourse states.’  Brent T. White’s discussion paper (October, 2009) offers much food for thought on the current situation.

According to Mr. White homeowners whose homes are worth less than their mortgages are unable to understand that they would be better off financially giving up their homes. This inability to default is the same even for homeowners who understand this concept. The reasons given for this behavior is: wanting to avoid the feelings of guilt or shame related to foreclosure and fear of the consequences linked to foreclosure. The consequences of foreclosure are apparently far less harsh than people believe.

Currently approximately 32% of U.S properties with a mortgage are “underwater” and by 2011 it is anticipated that the percentage of homeowners “underwater” will rise to 48%. Some of the areas currently suffering the most with “underwater” mortgages are: Merced, California – 85%; Las Vegas, Nevada – 81%; Port St. Lucie, Florida – 79%; Riverside-San Bernardino, California – 78%; and Fresno, California – 72%.

Tips Coping with Underwater Mortgages

If walking away from your mortgage is not an option then paying down you mortgage and saving thousands of dollars in interest payment should be your goal. This can be accomplished in several ways:

1. making extra payments on your mortgage each month
2. paying your mortgage biweekly
3. making an extra  mortgage payment each year
4. following the Money Merge Account program
5. splitting your mortgage payments

All of these concepts can reduce your mortgage payments by years and save you a lot of money in interest payments. Some of these principles do not require any additional funds other than what you currently pay for your mortgage, and the concept is easy to implement. Find out more about these simple principles and start shaving years off your mortgage. Order Kevin Trudeau’s book Debt Cures “They” Don’t Want You to Know About If you are ready to take charge of your finances you will want to start by reading this book.

For information on getting out of debt,  staying out of debt and building a solid financial foundation visit Dave Ramsey Financial Peace University and/or Crown Financial Ministries