Jon Griffith, Certified Short Sale Negotiator

No, it doesn’t literally mean that you’re upside-down.  It’s a financial term that describes the relationship between the value of your home and what you still owe on your home mortgage.

When you borrow money, you usually have to have something to secure that money against, so the bank has a way to recover their money if you don’t pay your payments on time.  Usually, it’s the item you’re purchasing.

When the bank loans you money on a house, they do so based on the current value of the house, with the assumption that you will pay back the loan in full, over time, regardless of the value of the home at the time you sell it.

Sometimes your home appreciates (increases) in value, and sometimes, such as in recent years, your house depreciates (decreases) in value.

If your home’s value is less than what you owe the bank, then it is said that you are “upside-down.”  There are only a few remedies for this situation, and they depend upon your future plans, and your current financial circumstances.

It’s okay to be upside-down in your home if you plan on staying there long enough to ride out the ups and downs of real estate values.  Don’t panic if your home is worth less than you owe.  If you can afford your payments and you have a relatively secure job, you can stay.

But, if you are in a financial situation where your income has decreased, your payments have increased, or any other circumstance has caused undue stress on the wallet, it may be time to take a look at your housing options, and perhaps find a less expensive place to live.

If you’re upside-down and you are faced with this situation where you must sell to make the right changes in your life, you are considered a short-sale candidate.

Don’t be overwhelmed, there are thousands of people in your position.  You are not alone.  Selling homes that are upside-down happens every day.  I know, I’ve done it, and it’s called a Short Sale.

It is nothing to be ashamed of.  I recently spoke with a client who said that she “felt like white trash,” just because she couldn’t afford her mortgage payments any more.  This is so far from the truth.

Whether your home is under $100,000 in value, or over 1,000,000.00 in value, if you’re upside-down and you’re facing financial troubles that will eventually lead to you losing the house, then it’s time to put your ducks in a row and hire a Certified Distressed Property Expert to help you prevent this from happening.

Upside-down simply means it’s going to be a bit more challenging, and will take a bit longer than normal to sell your home.  It also means that it will most likely cost you nothing out of pocket in the end.

Don’t give up!  There is a solution to being upside-down in your home.

Over the past 10 years I have sponsored a young boy who has grown into a man through Compassion International. Today I received my final letter from him, which was bitter sweet. Gabriel was only 7 years old when I chose him to be my sponsored child. Gabriel was born in 1990 and it’s time for him to leave the Compassion Project. I have posted his final letter here. I urge you to consider reaching out to someone who is in part of the world that doesn’t experience the same luxuries that we do. It truly blesses their lives.

April 9th, 2008

Dear Sponsor Jonathan Griffith:

I greet you with a special affection in the love of Jesus and I wish you are very well. I thank God because I do well at biology and after my school studies, I will go to University. I would like to study medicine and I am praying that God let me to study that career. I am going soon to turn 18 years old and I am going to leave the project where I learned many things. I was playing with a soccer team, my position is middle camp and I visited many places where we had to play and I met many special poeople that help me with my formation and the most important is that I knew to God and His immense love to us. I am living with my grandmother and my aunts in Pastrana Barrero Neighborhood which is a very peaceful neighborhood and there I have many friends. My address is (removed) my phone number is (removed). I am very grateful with the sponsorship that you gave me all these years. It was a great blessing although I did not have the oportunity to see you in person. But I know that you are a great person. I thank your letters and for praying for me. I ask you always pray for me and I will take you into my heart because I will never forget all you did for me. I trust in God to bless you and protect you and whole your family. I say good bye with a great hug. So Long!

I love you,

Gabriel A Negrete H

Needless to say, I feel as though I have a long lost son in Columbia who has grown up in adverse conditions and one day I will meet him. The experience is well worth the monthly gift. Compassion International.