Cash is King – Upside Down Mortgage Solutions

September 17, 2010

Underwater Mortgage Help – FHA Short Refinance Program

// Homeowners who have seen their home’s value drop over the past months may have options in dealing with their underwater mortgage through a new FHA short refinance program. Homeowners who might qualify for this program could see a principal reduction on their underwater mortgage and have the opportunity to refinance for an FHA home loan, which could bring a more affordable mortgage interest rate and lower monthly mortgage payment.

Many homeowners who own more on their home than their home is actually worth are obviously in a very difficult financial situation, especially in cases where a homeowner’s monthly mortgage obligation has become problematic due to the loss in property value. Interest rates on home loans are quite low at the present time but underwater homeowners have been unable to refinance for a more affordable mortgage rate and possible mortgage payment since they have negative equity in their home.

Yet, it’s hoped that this new Federal Housing Administration program will bring more options to homeowners in an underwater mortgage situation so that they may make their home loan payment more affordable and avoid foreclosure. However, there have been some concerns over whether this program will be successful due to the fact that mortgage servicers will be required to offer a principal reduction before homeowners may qualify.

Mortgage servicers have been reluctant to offer principal reductions in some cases and since another qualification of this program is that a homeowner must be current on their home loan payments, it’s believed that mortgage servicers may not offer principal reductions in cases where homeowners can still meet their mortgage payment requirements. However, homeowners who may be struggling to stay current on their home loan payments may find assistance through this short refinance opportunity as long as their mortgage servicer will work with them to provide more affordable mortgage payment options.


August 3, 2010

4 Things To Consider When Deciding How Much Mortgage You Can Borrow

Filed under: mortgage — brentlane @ 12:39 pm

Mortgage is that loan which is taken to pay for a house and the land that it is on. The land and the house are treated as collateral on the loan. If you do not make the payments towards the loan, you may lose your house and land. Thus, deciding how much you can borrow and afford to pay back is very important.

If you are planning on buying your dream home and are planning to take a home loan/mortgage, you must have often wondered “how much can I borrow for a mortgage”. To get an answer to that, you have to consider various factors. Some of the factors are as follows.

1. Credit score: To find out how much mortgage you can afford, find out your credit score first. Your credit score affects the interest rate; this will directly affect the mortgage payment. It is better to find out from a few lenders what interest rates they are offering. This should help you determine how much mortgage you can afford.

Learn to Mortgage

2. Down-payment: The amount of money that you have saved and are willing to pay towards the down payment, also affects how much mortgage you can afford. Earlier it was very difficult to get a mortgage for more than 80% of the price of the house you are purchasing. That is, 20% of the price of the house had to be paid by you, as down payment.nowadays, mortgages are given even with 3% of down payment.Thus, it is important for you to find out how much down Payment you will be able to make.

3. Monthly income: Your income is an important determinant that affects how much mortgage you get. Most lenders say that housing expenses are not to exceed 25% to 28% of your gross monthly income. Your income in this case will include, not only your income from your steady employment but also overtime, bonus, income from self employment, interest and dividend incomes, workman’s compensation etc. House expenses comprise of monthly mortgage principal, property taxes and your home insurance. The house expenses should not go beyond 29% of your gross income.

4. Debts: How much debt you have, is also considered by lenders before they give you a home loan. It is better to pay off as much of your debt as possible before applying for a mortgage. All debts such as real estate loans, bank loans, auto loans, alimony, and child support, come under consideration. Your housing expenses and your long term debts should not be more than 36% of your gross income.

Considering these factors you can have a fair idea of how much monthly mortgage payment you can afford. This helps answer the question “how much can I borrow for a mortgage”.

July 7, 2010

Loan Modification Declined After Trial Period

If you were one of the unlucky few who were declined after being put into a trial loan modification then I bet you are “FREAKING OUT”!

Not to worry to much, well you should worry, I hope to have a solution for you.

I had someone leave me a comment that spurred this answer.  They were declined for their loan modification after spending 7 months in a trial loan modification program.  They have been sent to collections and the foreclosure process without ever giving them a ‘decline letter’.

Go to learn more HERE at Trial Loan Modification Decline………………

July 1, 2010

Underwater Mortgage – Strategic Mortgage Defaults

It’s amazing to me that people are so shocked when someone says they are no longer going to make payments on their home that has a underwater mortgage.  Look at what they are saying, they simply see that their payments are going towards a dead asset or in this case their mortgage.  They just don’t see the point as they are the glass half empty type of people.  You know these folks everything is a negative thing ahead of the potential positive outcome.

It becomes an ethical question at this point, make your house payments or stop paying and walk away.

If you have been here before I have addressed the common response of walking away from your home as something that should never happen.  I truly believe that you need to fight to find solutions before resorting to the easiest course of action.  It’s just easy to walk away and it’s HARD to stay in and fight with your bank or lender to make things work “The Right Way”

“The Right Way” is fighting for a desired outcome and not taking the path well traveled.

1. Attempt a loan modification –  This is difficult to accomplish and will often require duplicate work on your end just to have them look at your paperwork.

2. Attempt a Short Sale – this is selling your home for less than the loan amount.  It is very common these day and there are some very good Short Sales Agents out there so just go find one you like and make it work.

3. Try a Short Refinance – This is not easy but it is possible to refinance your home for less than you owe.  You need to demonstrate a hardship and if done correctly you can get your balance reduced and you remain in your home.

4.  Sell and rent back – this is more complicated but can be done if you absolutely want to stay in the home you currently own.  You also might get lucky and be able to buy the house back for less shortly after you short sell it to the investor.

Many times people don’t work through all their options because it is just TOO HARD!  There is a whole lot of emotional stress when it comes to dealing with your mortgage.  I guess anytime you deal with finances it seems to be difficult.  Just know you have options and that figuring out those options is not that difficult.


December 14, 2009

Negative Equity Mortgage – HAMP Program


Negative Equity Mortgage Solutions – HAMP Program

Shellie Hatfield and I go into great detail on how to properly handle a Negative Equtiy Mortgage using the HAMP program.  We cover the criteria in great detail and even dive in to the Streamline refi program.

HAMP program visite by On The Money Radio Show.

TG-421: Obama administration Kicks off Mortgage Modification …

November 30, 2009. TG-421. Obama administration Kicks off Mortgage Modification Conversion Drive. WASHINGTON – The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) today kick off a nationwide …

Obama Administration To Admit Failure Of Mortgage Modification …

Throwing good after bad is not a practice that generates long term success and prosperity. In fact, the unintended consequences and costs of dysfunctional.

Status of Efforts
• 63 servicers had signed participation agreements for the first-lien modification program;
• More than 1.3 million solicitation letters for HAMP loan modifications to borrowers;
• More than 328,000 HAMP trial modification offers to borrowers;
• More than 209,000 HAMP trial modifications had started;

. . . and of the 209,000 mortgage modifications (.3% of total homeowners) started in the country, how are we doing?

  • 1,080 borrowers had successfully completed the trial period and received HAMP modifications.


HAMP – Another Federal Foreclosure Bailout Plan In 2009, the Congress and the Obama administration revealed their newest plan to help families save their homes from foreclosure by encouraging mortgage modifications. This plan, called the Home Affordable Modification Program (HAMP) was designed to create broad guidelines for the mortgage industry on modifying loans, as well as provide incentives to lenders and servicers to offer modifications. … hamp “foreclosure bailout plan” …
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