Skip to main content

Find Your Local Branch

Back

Find Your Local Branch

Online Banking

Enroll • Services Where do I enter my password? Forgot password?

You're Upside Down . . . Now What?

Personal Finances 2 min read

Upside down

Ready to talk to an expert?

Find A Location Get In Touch

We spoke to the First Bank Mortgage team about one of the least appealing sides of homeownership — being “upside down.” They explained that it’s a serious issue, but there is hope.

First of all, what does it mean to be “upside down”?

It simply means you owe more on your home than it is actually worth. It happens to people who bought at a market peak before prices fell.

A homeowner can still be “upside down” even if they make all of their payments on time. It can feel like a burden they can’t shake no matter what.

How do you know when you’re upside down on your mortgage?

You can ask a local Realtor for comparable sales within the last year in your neighborhood. Most Realtors are knowledgeable and can help you determine what you house would sell for currently.

So if I’m upside down, what can I do?

If your mortgage is owned by Fannie Mae or Freddie Mac—and many conventional mortgages are—you may qualify through certain lenders like First Bank for the Home Affordable Refinance Program (HARP).

HARP lets you refinance your mortgage to more favorable conditions for an amount greater than the home is worth.

How do I qualify for HARP?

We use the same process we use for any other loan. We look at your income, evaluate your property, look at a minimum credit score, etc. Like other mortgage loans, it takes about 30 days to get in place.

Also, it’s worth noting that HARP won’t impact the way that banks look at you for future loans.

What are some other options for upside-down homeowners?

If your desire to sell is more than your desire to ride out the market to see if values improve, you can contact your current mortgage holder to see if they would agree to a “short sale.” Simply stated, a short sale means that you would sell your home for less than you owe on it, without bringing cash out of your pocket to the closing table.

Some banks will allow this with no recapture of the balance from the current owners, but many are rolling the balance due into a note that the current owners will have to pay over time. In addition, note that a short sale can impact your credit and ability to get a mortgage for several years.

Ready to talk to an expert?

Find A Location Get In Touch

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Houses made of paper

Am I Ready to Buy My First Home? Undoubtedly, one of the most significant financial milestones in life is the purchase of your first home. And there are many benefits to homeownership. 5 min read

Personal Loan Rates in South Carolina If you live in South Carolina and are looking for competitive personal loan rates,* visit a local First Bank for highly competitive rates and flexible terms. We’re dedicated to serving our customers and providing a variety of loan options—from personal lines of credit to home equity lines of credit. Our loan experts will help determine which option is best for you. Personal Loans from First Bank Personal loans can be helpful when you have a medical emergency, home expenses, or other unexpected costs. Take a look at the personal loan options offered by First Bank: Personal Line of Credit—This personal loan grants you with instant borrowing power. Ready Reserve: Overdraft Protection—To avoid accidental account overdrafts, think about getting overdraft protection. First Bank will automatically transfer funds into your First Bank checking account from your overdraft line of credit to prevent costly fees. If you need a larger loan for bigger purchases, think about applying for a home equity line of credit. A First Bank home equity line of credit (HELOC) offers low interest rates and flexibility in funding larger expenses like debt consolidation, college tuition, medical bills, and other costs. Tips to Consider Before Getting a Personal Loan Before applying for a personal loan, consider these tips to get the best interest rate: Compare Your Options—Consider whether a personal loan would be cheaper than a low-interest credit card. The experts at First Bank can help you compare these options and determine which you could pay back faster. Find a Cosigner—If you have a low credit score, a cosigner with a high credit score could help you qualify and get you better rates. Consider a Secured Loan—Secured loans, also known as collateral loans, allow you to pledge the title to one of your assets, like a car or home, in return for a larger loan. Pay Off Credit Cards—Any balance you have on a credit card could count against you when applying for a loan. Visit Your Local First Bank Today Visit one of our fifteen South Carolina First Bank locations to start an application. ——— Sources: Bank Rate: http://www.bankrate.com/finance/topic/heloc.aspx *Loans subject to credit approval. 2 min read

Personal Loan Application – Apply for a Personal Loan When you need to apply for a personal loan, the application process shouldn’t be complicated. Avoid confusing and complicated personal loan applications at First Bank. Our application process is easy and simple. We have more than 100 locations in North Carolina and South Carolina, where you can apply for a personal loan that meets your needs. Applying For a Personal Loan is Easy at First Bank At First Bank, there are several personal loans you can apply for: A personal line of credit provides you with instant borrowing power. If you need to request cash, all you have to do is write a check. First Line is an unsecured personal loan, but in some cases qualified collateral may be required to secure your personal or commercial line. Home Equity Lines of Credit (HELOCs) are flexible options where you take out a loan using your accrued home equity as collateral. Auto loans from First Bank are offered at competitive rates. Get access to funds in as little as 24 hours and purchase the new car you’ve been wanting. Boat loans can take you one step closer to your next dream vacation. We provide loans with competitive, fixed rates and no prepayment penalty. First Bank Credit Card with Rewards First Bank also offers a Platinum Credit Card with Rewards that allows you to make everyday and monthly purchases in a convenient and secure way. With our credit card rewards program, you can earn points on every qualified purchase. Other benefits include: Online customer service 24-hour access Zero liability ID theft resolution Price protection MasterCard Global Service® Visit a First Bank Today To fill out a First Bank credit card or personal loan application, visit a branch near you. *Loans subject to credit approval. See our Terms and Conditions for complete details on our One Rewards Program. MasterCard, Debit MasterCard and the MasterCard brand marks are trademarks of MasterCard International Incorporated. ——— Sources: Investopedia: http://www.investopedia.com/terms/z/zero-liability-policy.asp Investopedia: http://www.investopedia.com/terms/o/overdraft-protection.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186 2 min read

Banks With Stress-Free Checking Accounts By switching to a bank with stress-free checking accounts, you can worry less about your finances. At First Bank, we offer stress-free checking accounts to make your personal banking experience as easy as possible. Types of Checking Accounts at First Bank First Bank offers five different checking accounts. Take a look at our account options below: Everywhere Checking—this is our basic checking account that offers free, online and mobile banking, account alerts, and a credit card rewards program Everywhere Plus—this account offers the same benefits as our Everywhere Checking account in addition to earning interest on your balances Everywhere Premium—as our top-tier checking account, Everywhere Premium offers the same benefits as Everywhere Checking, plus free membership checks and an unlimited number of free non-First Bank ATM withdrawals Campus Checking—our stress-free student checking account has no monthly fees and offers eight free, out-of-network ATM transactions Senior Checking—seniors 55 and older can qualify for no monthly fees and earn rewards on everyday purchases with an eligible First Bank credit card Checking Account Benefits Whether you need a basic checking account or a premium checking account with rewards, First Bank can help you figure out the best option for your finances. Take a look at some of the benefits First Bank offers with our stress-free checking accounts. By meeting minimal requirements, you won’t incur any First Bank fees for things like: Online or mobile banking Account activity alerts Monthly paper or electronic statements Automated online bill paying We even offer ways of dodging monthly maintenance fees simply by meeting certain requirements. Additionally, depending on which of our five stress-free checking accounts you decide to open, you can avoid fees for things like ATM transactions and check ordering while earning interest on minimal balance requirements. Visit First Bank Today Visit your local First Bank and open up a stress-free checking account today or visit us online for other financial resources. While First Bank does not charge for mobile banking, your mobile carrier’s message and data rates may apply. While First Bank does not charge for Alerts, check with your mobile service provider for web access or text messaging fees. Account holders may avoid the Monthly Maintenance Fee by meeting any of the requirements listed in the Keep 3 min read