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"Do Nothing" Overview

For some homeowners �doing nothing� � no loan modification, no short sale, no strategic default, just paying the mortgage on the 1st of every month like always � is the best option.

Now, this doesn�t mean that you don�t take action today; you absolutely need to take action to determine which is the best option for you given your unique circumstances. But after a review through the Underwater Homeowners Assessment and Action Plan, you may decide that �doing nothing� is indeed in your financial best interest and in the best interest of your family.

    Doing nothing might be right for you if�
  • Your negative equity is less than 10 percent (meaning, you owe less than 110 percent of the value of your house); and
  • You can comfortably afford your mortgage payment; and
  • You plan to live in the house for at least five more years; and
  • You have at least 6 months of living expenses saved in a rainy day fund; and
  • Youâ��ve fully-funded your retirement accounts
But you won�t really know what�s right for you until you get the Underwater Homeowners Assessment and Action Plan.

"Do Nothing" Pros & Cons

"Do Nothing" Pros

  • If you continue making your mortgage payments on time you credit score will remain intact
  • If home is already your source of financial stability and peace of mind â�� and looks like it will be for years to come â�� than why take steps today that will damage your credit score or subject you to potential tax and/or legal liability?
  • There are important benefits to homeownership, and the longer you stay a homeowner (as long as itâ��s in your best financial interest), the stronger those benefits are

"Do Nothing" Cons

  • Depending on how much negative equity you have, and how fast the real estate market recovers, you could still be underwater for many years. What if in two years you lose your job or encounter some other financial hardship? Your options for getting out from underneath your mortgage debt may be more limited then than they are now.
  • If you canâ��t afford your mortgage payment (which you canâ��t if youâ��re tapping savings and/or retirement and/or kids education funds to pay your mortgage) then owning the home youâ��re in today with the mortgage terms you have today is not in your best financial interest; so doing nothing to change your situation is not in your best financial interest. Are you selling your familyâ��s financial future to stay in the home today?/li>
  • There are certain protections available for a limited time to help homeowners who do a short sale or whose homes have been foreclosed. Namely, the Debt Relief Act could save you from tens of thousands of dollars in tax liability â�� but it expires at the end of 2012./li>

Is "doing nothing" the right decision for you? You won�t know until you sit down one-on-one with an experienced professional to evaluate your unique circumstances.

"Do Nothing" Resources

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"Do Nothing" Videos

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Underwater homeowners, look at the numbers and decide: "Am I that emotionally attached to this home that I'm willing to spend my kids' college funds, my retirement money, to keep this house afloat?" Make the decision that is best for you, but understand the financial impacts of it.

Healthy Homeowners = Healthy Economy

To get out of the real estate crisis and economic recession, homeowners need to get out from underneath the crushing mountains of mortgage debt.

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Take Action

The fact that �doing nothing� � not doing a loan modification, not pursuing a short sale or deed-in-lieu of foreclosure, not doing a strategic default � is an option (and, for some homeowners, a good one) doesn�t mean that you shouldn�t take action. How will you know if �doing nothing� is the right option for you and your family? How do you know that it�s the right path to financial stability and peace of mind?

You can only answer those questions with a 360-degree picture of your financial situation, and a really good understanding of where homeownership fits in for you. You need the advice of an experience professional who can help you look five or ten years down the road and help you ensure that you�re making the right decision for you and your family today and into the future. And that�s exactly what you�ll get with the Underwater Homeowners Assessment and Action Plan.

Learn more about the Underwater Homeowners Assessment and Action Plan

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