Did you get an adjustable rate mortgage in 2006 or 2007? This was a very popular mortgage during the housing boom because it made homes "affordable", and I use that term loosely. What the 7/1 ARM meant was your purchased a home and the rate did not increase for 7 years. Is your alarm going off yet? If not it will be soon because these mortgages are about to reset.
If you are under water on your home you may be in trouble. If you are not under water on the value of your home, I strongly suggest refinancing as soon as possible and taking advantage of the low rates.
For those of you under water, which here in the Las Vegas area, it is a lot of us. Now may be the time to consider a short sale. The reason I say now is because the mortgage relief act has been extended through the end of this year only. It takes time to do a short sale and if you close after December 31, 2013 you will have tax implications if you sell your home and have a deficiency.
Prices are up so banks are more willing to do short sales for a variety of reasons. Please contact me for a personal consultation if you are on the fence about selling your home.
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