Cash is King – Upside Down Mortgage Solutions

February 8, 2008

My Mortgage ARM Adjusted and I Can’t Make My Mortgage Payments!

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

If the title hits close to home than you need to know that there is an option out there that you may be missing. The Federal Government put together a loan program to help people with this exact scenario but of course you need to meet the exact criteria. Here is some additional information about this FHA mortgage program:

  1. This loan is ONLY available to those who currently have a non-FHA adjustable rate mortgage (ARM) and you MUST be behind or missing your payments. If you are not delinquent or behind then you have another options but different criteria apply. (Update: If you need an upside down mortgage refinance 2009 and it’s FHA or Fannie Mae both now have options available to you)
  2. Most importantly, your late payments must be due to the mortgage interest rate adjustment. The six months leading up to the adjustment month should show payments being made on time.
  3. This loan is a way to STOP FORECLOSURE and can be done at anytime before the house is taken away. The loan can pay for all foreclosure fees.
  4. Your home can be upside down BUT must have a second mortgage or line of credit. Certain rules apply to second mortgages; most importantly to include the payoff of your second in the new first mortgage, the second loan must have been part of the purchase loan transaction and not afterwards to be included. If you open a second after your home purchase then you fall under a different set of rules.
  5. The first mortgage has to be 95% or less of the homes current value and the second mortgage can have any balance. ( Update : new rules will allow unlimited CLTV on the FHA upside down mortgage refinance and will allow up to 125% LTV on the Fannie mae upside down mortgage refinance)
  6. Borrower can have up to $500 cash back as a result of the no closing cost refinance but rules apply.
  7. This loan program is only available to those borrowers who can verify their income. If you did a stated income or no doc mortgage previously then chances are you may not qualify. That said different rule apply and we may have alternate solutions for using your verifiable income to qualify.
  8. Golden rule! Your first mortgage must equal no more than 95% of the value of your home or you will not qualify. That will mean that the fees and the any interest owed will have to fit into this payoff amount.  This is considered a no closing cost refinance.

These eight points will give you a general idea but I’m sure there will be several of you that need additional assistance to determine if you qualify for this loan. If you read through these and find you don’t qualify for this, contact me anyway there are other options. I am just glad that there is something out there that can actually help some people who need help because they are either behind in their mortgage payments or they could be facing Foreclosure. If you need help I am willing to look at what you have and give you the best advise possible. Contact me at Brent[at]


Refinancing SECRETS for an Upside Down Loan that Banks Don’t Want You To Know because it will Cost them THOUSANDS of Dollars!”

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”



  1. I feel like many people will be in this position within the coming months with the economy the way it is

    Comment by Veronica — February 14, 2008 @ 9:07 pm | Reply

  2. I agree! I have helped a handful of people already who send me emails based on this information and I hope to help many others as well. Most people never ask if we can help because they are afraid of the outcome. It may not be bad news!

    Comment by brentlane — February 14, 2008 @ 11:04 pm | Reply

  3. I am not behind on my payments. I owe more than my house is worth (purchased 03/07). I’m in a loan I need to refiance, but cannot do so until 3/09 to avoid severe penalties. Next year I’m scheduled to have payment adjusted as I’m in a ARM. My first question, I’m getting a large tax return do I invest my money in my retirement and payoff my minor debts or do I make extra principle payments to help get my loan balance down in anticipation of refinancing? Second question, are there options for folks with less than perfect credit to refinance without having to be behind on your payments?

    Comment by Diana — March 1, 2008 @ 4:21 pm | Reply

  4. my mortgage is getting ready to change and i cannot refiance my house i would like to go back to a fix rate at this time i am not behind in any payment my new payment will start may 1 can i get help in getting a fix i do not want money my credit is good i do believe

    Comment by jacquelyn stokes — March 11, 2008 @ 10:37 pm | Reply

  5. Hi Jacquelyn,

    Thanks for stopping by! I am sure that we can figure something out I just need to know the basic information regarding your loan and your home and then we should be able to work together to find a reasonable solution. I emailed you directly so let me know!

    Thanks again
    Brent Lane

    Comment by brentlane — March 11, 2008 @ 10:45 pm | Reply

  6. We are upside down on our mortgage 90k.lived here for 3yrs. Never been late or missed a pymt. Set to reset in December from 7.99 to 10.99 and after 6 months 12.99.
    1st 432K.
    2nd is 108.K rate is 12.5%

    We have 9mths to go before reset. Any hope for us Brent? our loan co. is MC mortgage corporation in Lewisville Texas. We are scared stiff and its beginning to fray our marriage.

    Comment by teresa — March 27, 2008 @ 3:48 pm | Reply

  7. Hi Teresa!

    Thanks for stopping by! Sorry to hear about your situation as I know there are many other people out there who have the exact situation happening to them. I your case we would need to establish the HUD loan amount for your county first. That can be found at my top links above under the HUD link. Go there at tell me what the maximum loan amount allowed by the FHA in your area and I can direct you as to what you should be doing next!

    Hope that helps.


    Comment by brentlane — March 27, 2008 @ 4:16 pm | Reply

  8. I refinanced october 2007 after my ARM matured and got a 30 year fixed from Countrywide at 7%. I lost my job and am feeling the pressure of this mortgage on my chest ($1750 per mo.). Thankfully I had some money put away. Am I eligible for any help from gov’t or otherwise? I think my credit is around 660 and I have never been late. There may still be equity in my home or it’s even anyway with what I owe…

    Comment by Max — April 10, 2008 @ 12:11 pm | Reply

  9. I have an option arm with countrywide. They say that I don’t qualify for a loan modification. I have a 700 FICO score but the the value is less than what I owe. The property is a non-owner occupied duplex. How can I get a new loan?

    Comment by Allen Jackson — May 3, 2008 @ 11:35 pm | Reply

  10. Hi,Similar situation is happening to me at this time. My ARM will change now in AUgust 2008 from 7.75 to 9.25 and then again in January 2009. My husband lost his job around a year ago leaving an unbalance economy in the household. My payment has been on time, however struggle to make them. My lender does not want to refinance my actual mortage, because the income ratio. I am ready to move out because I can not take anymore the stress and the frustation of not been able to do anything about. NO lender want to help me. I wonder if I left the house, would I be able to buy another one in the future.

    Sincerely yours,

    Rosa Garcia

    Comment by Rosa Garcia — June 28, 2008 @ 11:24 pm | Reply

  11. I am in a different but similar situation. I have a loan that my wife and I got in Sept 05. It was a 2yr ARM and we felt we would just re-fi before it went up or about there. Well, my wife is no longer my wife and I’m stuck with the house. (Couldn’t re-fi due to divorce) The ARM hit twice now and I’m stuck with a mort at 9.95% and 700+ more than the original. I need to re-fi 1.) to get her off the loan 2.) to lower this rate before I get hit again in October. The value of the house dropped 85k and I’m now 40k over value. Help.

    Comment by Chris — July 9, 2008 @ 1:16 am | Reply

  12. Hi Chris!

    I would be more than happy to help!

    I need some additional details and I will tell you what path to take.

    Email me at but I will also email you as well.

    Rosa- I hope things went well I never did hear back from you via email. If you are still around and need some help, please let me know.

    Comment by brentlane — July 9, 2008 @ 6:50 am | Reply

  13. Hi!
    I am trying to help out a friend of mine who is having some serious problems with her situation at the moment. She currently has a 2flat income property, and a small home. She has been current with her payments, but as a contractor her business has taken some serious hits and she is worried that she will lose her properties. She would like to get her monthly payment reduced – even for just 6 months would really help her out. She is currently paying out around $4,800 a month total. She has a re-fi on the income property and about $60,000 equity into it.

    Comment by Jon — July 15, 2008 @ 2:56 pm | Reply

  14. my mortgage went up from $1700 to $2700 because we are reaching our cap. i dont want to sell my house i dont think that is even an option but i cannot make those payments what can i do?

    Comment by NANCY MEZA — August 2, 2008 @ 7:14 pm | Reply

  15. this is what I have been looking for, information on upside down homes, I’m currently down 103k off of 300k

    Comment by tray — August 19, 2008 @ 3:19 am | Reply

  16. It’s a real shame what has happened to America with the subprime mortgage meltdown. Where was the compliance regulators when this was going on. My firm offers Mortgage Modification Loans to homeowners who can not afford to keep going with their payments, or who are in the processes of foreclosure.

    Comment by mortgagemodifications — September 8, 2008 @ 5:30 am | Reply

  17. Hello I need help, I have adjustable rate mortgage and I have been trying to refinance but my mortage is more than my house is worth. I have two mortages one for 64000 and one for 16000 so far I cannot refinance because i have no equity. My lender is also doing some thing crazy. They cancel my escrow which may my taxes and PMI without my consent stating that I sent a letter requesting this to be canceled. When I recieved this documentation this was not my handwriting nor my signature. Im at lost as what to do and I have a feeling that my mortgage will go up to a point where I am not able to afford it and my house is not worth that much. I have also been trying to fix my house since I had a pipe leak. with this mortage going up I will not be able to fix my house. If you could please give me some advice I would be greatly appreciate. I have never been late on my mortgage. no missed payments.

    Comment by Dave — October 28, 2008 @ 2:10 am | Reply

  18. I have an investment lot loan which matured in July 2008. I have contacted the bank to discuss the options. Our circumstances have changed a lot over the last 2 years. Both of us loss jobs after 14 years of service. We were never late on the payment. The bank would not refinance us do to our finacial situation. Since July we continue to pay our regular amount which is interest only, but a letter came in today requiring us to pay the entire amount. What to do????

    Comment by john — October 31, 2008 @ 2:25 am | Reply

  19. We have a Option Arm 1st mortgage and equity 2nd with Countrywide that is scheduled to recast in about 90 days. Currently we do not have any equity in our home to refinance because home values in our area have dropped since we had this loan. The lender has denied us any help from the programs they offer. We have been paying the minimum option on time and have never been late on payments. Do you have any suggestions? Thanks..

    Comment by Sel — January 9, 2009 @ 8:59 pm | Reply

  20. My interest-only 5 year Arm loan (at 4.5%) will reset in February 2010. I bought my townhouse for $275,000 in 2005 and owe $220,000. I got a home equity loan that I owe a little under $100,000 on. The market for my house appears to be somewhere between $250,000 to $275,000 right now. I was looking to refinance but of course, I am over 100% of my home’s value. My boyfriend and I are looking at options because we are thinking about getting married and I want to rent or sell my house soon. If I rent, the increased payment next year could be disastrous. Although I am a single mom, I CAN make the higher payments (it will be really tight, though)so am not late on payments currenlty. Will any of the new regulations help my situation? I have been told I would need to apply for subrogation but it doesn’t look good since I am over 100%. Help! Thanks.

    Comment by Trish — March 8, 2009 @ 12:27 pm | Reply

  21. Hi Brent,
    We bought our home on this golf course in 2001. 1 year later they sold the golf course and the builders who bought the course meant to build new hommes on it but they went bankrupt. We tried to sell last year to downsize but it was too late the values were headed down. We are sitting in 3525 sq ft, 5 bedrooms 4 1/2 baths custom split level and there are just two of us, my wife is a school teacher and I am now unemployed and 61 years old. To make matters worse we had an ARM mortgage that just converted this month and our mortgage is jumping up over $500.00 a month ! I thought there was susposed to be a program to help people like us ? We have never been late on any mortgage payments. We live here in Michigan.

    Any ideas ???

    Thanks Brent for any help you can give to us.
    Ernie and Christine Laing

    Comment by Ernie Laing — June 2, 2009 @ 3:33 pm | Reply

    • Ernie….

      At the very least you should be able to get the lender to freeze your payments ahead of the adjustment. This is a relatively easy thing to do but not the most desirable. You need to focus on getting them to lock in the payment versus freezing it because that would mean your loan payment would remain the same throughout the life of the loan.

      Start with the lender and tell them you are in trouble and can’t make your payments but be prepared to thoroughly document your financial situation. Hopefully they will work with you to find a solution.

      Worst Case – Short Sale! I hate to say it but know the reality!

      Also, Check out Fannie Mae’s new Upside Down Mortgage Refinance Program at

      Good Luck

      Comment by brentlane — June 22, 2009 @ 5:52 pm | Reply

  22. I have a 5yr arm intrest only. My lender Taylor bean and whitaker has gone under and sold my loan to Cenlar. I have 1 year left but.. Cenlar has increased my Escrow up to 200$. I can barley afford the house payment I have now! I can’t afford this increase.. I see myself in a sinking ship. Can they really increase my Escrow when I still have a year left?!

    Comment by Jammie — August 30, 2009 @ 3:14 pm | Reply

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