Cash is King – Upside Down Mortgage Solutions

June 6, 2008

Short Sale: Should I just let my home go to Foreclosure?

Here is an email from a reader…… 

On 6/3/08 4:24 PM, 

> Name: Jake 

> Ok here is my situations.  I have perfect credit and I am current on 

> everything right now.  I lost my job a few weeks ago and went from making 

> 70,000 a year to about 35-40k a year.  I also lost insurance through my 

> company and now have to pay COBRA because my wife is pregnant.. We bought our 

> house at the peak of the market and then took a home equity line out to do 

> some thing things around the house.  We escrow our taxes and insurance and it 

> comes out to be about 1900 dollars a month just for our house.. So far I have 

> made the payments but I dont think I will be able to continue to make these 

> payments.  I have about 30k in Credit Card debt.  My how is worth about 

> $173,000 dollars and we owe the one bank 173,000 and we also have our HELOC of 

> 60,000 … Is a short sales possible for us? Should we just walk away and 

> forclose?

> Time: Tuesday June 3, 2008 at 11:24 pm

Hey Jake!

Well my friend it looks like you are in a bit of a spot!

I know the feeling as I have been there before!  Remember on thing, it’s how you handle the situation that shows your true character.

Here is the only thing I want you to take away from this email, TAKE ACTION!  Being in your position, time is money and from the sound of it, with baby on the way, you have to make good decisions for 3 people.  

First things first:  GET THE HOUSE ON THE MARKET!

    Yes you should do this IMMEDIATELY but you can’t just grab the run of the mill Realtor and expect good results.  As my article shows, it is important have someone who knows what they are doing.  If you don’t you will find that you may lose your home to foreclosure and wasted time and energy on something you could have controlled.  I can make it easy on you…..

I work with a group of professional Realtors who have different specialties so finding the right one for you will be easy for me if you would like some help making choices.


    There may be a tax implication to your short sale but my guess is that you should be just fine.  The law changed regarding short sale implications but there are a set of rules you need to follow.


    Inform them that you are listing the home and that you are going to be short selling.  The hope here is to get an offer to buy your home ahead of you missing payments on your mortgage.  This works with certain banks, but it comes down to the decision maker you are assigned to at the bank.


    There is no reason at this point to price your home at any thing less than a price that will demand multiple offers coming in from potential buyers.  If your CPA agrees you should have limited tax implication for a short sale and from a credit standpoint the impact should be the same whether you settled at $10K less or $100K less than you owe.


Go with a truly professional Realtor and price your home to sell in 14 days or less and you should be well on your way!

I am more than happy to send you a referral to an agent I feel best fits the qualities you need to complete this transaction.  Otherwise, I hope this helps!  Let me know if you need anything further.

Brent Lane

The Lane Group


June 4, 2008

I Can’t Pay My Mortgage and I am Upside Down, I’m Going into Foreclosure Part II


I will discuss the Streamline Mortgage Loan Modification


Since this title is my most popular post by more than 4 times my next post I thought it was time I expanded it a bit. You can find my most popular post here.

I think it is time I take this topic to a different level. Just because you are facing late payments, no payments, notice of default or foreclosure, it doesn’t mean that you are out of options. You need to know what other choices are out there for you since the government has stepped in realizing that there was a problem and helping where there used to be little or no solutions. Here are some options that can help you find a solution to avoid foreclosure or selling your home:

  1. If your rate is starting to adjust or has already adjusted then you need to read my post for answers. If you are late on payments because you ARM adjusted then you need to know your options. Selling your home or foreclosure may not be your only choices. Refinancing with those late payments is now an option. The Government put in new rules and now will allow you to refinance into an FHA loan but rules do apply.
  2. You need to know the math behind the adjusting loan and the only way to figure that out is to look at your note provided to you at the time of signing your loan documents. I will help you with your rate adjustment payments so e-mail me your current mortgage statement and your mortgage note with all the riders attached to the note and I will tell you your new adjusted payment. It may not be that bad and could be manageable in the short run.
  3. Being “upside down,” (owing more than your home is worth), is no longer a hopeless situation. It’s a difficult situation to be in, but know one thing, you can get a new fixed rate mortgage at an extremely low interest rate if you know how to handle the banks.  Look for upcoming articles about negotiations along with success stories of others we have helped.
  4. If your ARM has not yet adjusted and you expect it to adjust in the next 10 months you may be able to get a 5-year freeze on your interest rate. You need to call your lender and ask them about this option and reference the “Hope Now” program. This is a voluntary program on behalf of the lenders and it can stop your rate from increasing if approved by the lender. To qualify your loan must have been between Jan. 1st, 2005 and July 31st, 2007. EDIT- Please find the top 3 post to the right for further details around this program.

Most important fact of all is to explore your options and know your adjustment date on the nose. If you are approaching the anniversary date to your purchase and you fall within the first 10 years of ownership, you may have an adjustable rate mortgage and not even be aware of it. Open those loan documents or call your lender to find out those details. If you need help with anything please email me Here is more information about myself and my Team. If you are feeling uncomfortable contacting me, take a look at my license information here and see what other say about me here.

Foreclosures NOT Slowing Down! 5 million more?

I really couldn’t believe the numbers were going to be that high!

I mean really, think about it that is entire cities, states for that matter. I hope that those of you reading this that happen to be facing foreclosure do something about it.

Sores Predicts 5 Million Foreclosures in the next 18 months

After searching all over the net I finally found the complete guide for people facing FORECLOSURE!

Learn About a SHORT REFI here

Learn all you can and DONT BECOME A STATISTIC!

Blog at