No equity? Find other options to pay for home foundation repairs.
Foundation repairs can cost thousands or tens of thousands of dollars depending on the size of the home and the nature of the work. Homeowners who have equity in their home can take out a home equity loan to pay for the repairs. But homeowners who owe more on their mortgage than their home is worth cannot borrow against the home and must find another way to pay for foundation repairs.
Instructions
1. Review the bids you received for the foundation repairs and figure out exactly how much money you'll need. Discuss the bids with the contractors and ask which of the repairs are necessary and which are cosmetic or optional. Ask about payment options: Does the contractor accept credit cards or offer financing arrangements?
2. Review your other financial accounts. Do you have enough money in your emergency savings account to pay for the foundation repairs? Do you have other financial assets (for example, stocks or bonds) that you could sell to get the money? Do you have a retirement account that allows you to borrow against or withdraw funds for an emergency? If you're married, you may want to discuss these options with your spouse before you make a decision.
3. Consider other more sources of money to pay for the foundation repairs. Could you borrow the money from your employer, your parents or your adult children? Do you have personal property, such as an extra car or valuable collectibles, that you could sell to pay for the repairs?
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