Cash is King – Upside Down Mortgage Solutions

May 14, 2008

California Real Estate: You Better Buy Soon.

They just keep at it!  Focusing on the negative things putting these huge numbers and overwhelming percentages in front of you hoping to continue to scare you causing you to do nothing.

In the latest AP article written posted at

You will read some serious statistic.  I can see how it is scary to go out and buy but in my area, Northern California, the time couldn’t be more perfect.  House prices are lower than they have been in 8 years and there is value all over the place.

Move up or investment properties are the hot ticket.

It has been a while since investment properties provided cash flow right after you closed escrow.  Many families are now moving to bigger and better homes because of the market we are in.

I think that many people just close their eyes and hope things get better when they should be focusing on the reality, NOW IS THE TIME TO BUY! ( See Previous post here about actual numbers supporting this information)

When it comes time to buy you have to be ready, know what to expect and know how to get things done in this market.  Even the most basic transaction on a REO property can take time and energy while the bank inefficiencies take hold of the transaction and never let go.

I have a couple of Free Reports that could be useful:

“The 3 Things Every REO Offer Needs to Get Accepted by the Bank”


5 Reasons You Should Avoid CalHFA Loans!

Also see:

Buying a Home in California in a Down Market

I have two more reports about buying a home and how to do it right due out within two weeks and they will be automatically sent to you if you request these reports.


I will sent the reports as soon as I can!

Happy House Hunting!

California Mortgage and California Real Estate

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Short-Refi California



May 4, 2008

I have an Option ARM Mortgage that is Upside Down? What do I do now?

Listen in on a Interview I did on Loan Modifications and the Fannie Mae and Freddie Mac Streamline Loan Modification Program



I received a great question that I am sure applies to several people.  The answer will make you question what you know about your own Option ARM.

“I have an option arm with countrywide. They say that I don’t qualify for a loan modification……”

Now this particular person has this loan on an investment property but the help I gave him will help many more people understand their loan a little better and what the next steps would be to avoid any undesirable situations.

Here is my Response:

“Thanks for the email!

I think that you should stick with that loan!

Changing that loan on a non-owner property will only go from bad to worse.  Let me Explain….

In the eyes of a bank you couldn’t be more of a high risk.  An investment property with no equity in an option ARM is a bad place to be in, IF YOU DON”T HAVE A PLAN!

I suggest making the Interest Only payment as often as possible as that will be one sure fire way to keep the property.  I know that the interest rate is high but you have no other solution if you want to keep the property.  If you want to sell the property and it is an investment property I would suggest contacting your CPA before you move forward with that process so you know the consequences from a tax perspective.



If you don’t know the answer then you could be caught off guard when your loan “Maxs out” (recast) because once hit that point you won’t have any options left but making the interest only payment.

The obvious next question is how do I find out where my recast point is?  You will need to review the paperwork you signed for the loan on that property.  You will be looking for a “Note” and “Riders” and within those documents look for recast in terms of percentages (110% – 125%).  Once you know the percentage you need to multiply your percentage against your original loan balance.  That outcome will be the “Max out” point for your loan and if you reach that number your loan will have a new minimum payment of interest only.  There are some other rules and tricks that will come up but if you are under 5 years into the loan you are good with just these basics.  If you are over that point you and I will have to talk!”

IF YOU ARE A HOMEOWNER and this is your PRIMARY RESIDENCE….. Additional Rules apply.

You can find out more about those rules in my FREE REPORT!

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

JUST SEND ME AN EMAIL with “Refi Secrets for Upside Down Loans!” as the subject to

More California Mortgage Solutions……


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