10 Ways to get out of Negative Home Equity

Here are 10 potential ways that a homeowner might be able to get out of negative equity:

1. Wait for the value of the house to increase: If the value of the house increases, it may eventually be worth more than the amount that is still owed on the mortgage, allowing the homeowner to sell the house and pay off the mortgage.
2. Make extra payments on the mortgage: By making extra payments on the mortgage, the homeowner can reduce the amount that is still owed on the mortgage, potentially increasing the equity in the home.
3. Refinance the mortgage: Refinancing the mortgage can potentially lower the monthly payments, which can make it easier for the homeowner to pay off the mortgage and increase the equity in the home.
4. Make home improvements: If the homeowner can make improvements to the house that increase its value, they may be able to sell the house for a higher price and pay off the mortgage.
5. Rent out a room or part of the house: Renting out a room or part of the house can provide additional income that can be used to pay off the mortgage and increase the equity in the home.
6. Sell the house and use the proceeds to pay off the mortgage: If the homeowner is able to sell the house and pay off the mortgage, they can eliminate the negative equity and potentially even come out ahead.
7. Sell the house and negotiate a short sale: In a short sale, the homeowner sells the house for less than what is still owed on the mortgage and the lender agrees to accept the proceeds as full payment.
8. Seek a mortgage modification: If the homeowner is having difficulty making the mortgage payments, they may be able to negotiate a mortgage modification with the lender that reduces the monthly payments and makes it easier to pay off the mortgage.
9. File for bankruptcy: Depending on the circumstances, filing for bankruptcy may allow the homeowner to discharge the mortgage debt and eliminate the negative equity.
10. Sell the house and rent or buy a less expensive home: If the homeowner is unable to sell the house or eliminate the negative equity, they may need to consider selling the house and moving to a less expensive home that they can afford.

It’s important to note that each of these options has its own pros and cons, and it’s important to carefully consider which option is best for your individual circumstances. It may also be helpful to seek financial advice from a professional.