Cash is King – Upside Down Mortgage Solutions

June 4, 2008

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

JOIN ME FOR A LIVE CONFERENCE CALL ON SATURDAY JANUARY 10TH AT 11AM PST

I will discuss the Streamline Mortgage Loan Modification

REGISTER FOR THE CALL HERE!

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 atbrent@brentlane.net. 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.


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7 Comments »

  1. I had the same problem recently and found a great article on claim advances. You can actually get an interest free loan to pay up your mortgage. You just have to be able to pay back that loan while continuing to keep your mortgage current. I haven’t approached my lender with this yet. Anyone got an opinion on this one?

    Comment by Judy — June 6, 2008 @ 4:48 pm | Reply

  2. We are upside down in our current mortgage. We were in an interest only loan, and the loan’s have now gone up to 7% and 11% for the second. Our house is only worth about $230,000, and our loan is still $244,000. We tried to refinance but were not accepted (3 times!) and we tried to write a hardship letter and that was denied as well. We have never missed a payment, but will be unable to make a payment for the first time this month. We are in a bind because my wife is not working now because she is ready to have a baby, so we only have one income coming in. We are ready to do a short sale and move into an apartment to re-establish our credit and pay off all our debt. Is this our best option?? My wife is very worried as I am, as to what the best course of action is to have great credit a year or two from now so we can buy another house. We cannot make the payments anymore and is causing problems with our marriage because of all this stress. I am now working 4 jobs, and we still would barely be able to pay a mortgage every month, and get by. To make things worse, I have $58,000 in student loans that will be kicking in, in 5 more months. Our current loans are for $196,000 and the other one is for $48,000. They are both through CHASE Bank. Please Help!!

    Comment by Brian Howells — June 26, 2008 @ 4:18 pm | Reply

  3. Hey Brian,

    Sorry to see the trouble you are in!

    I think I might have a solution, The new hot topic in this category is a Short-refi and depending on your situation you may be eligible for the program.

    Check out another blog I have at http://short-refi.blogspot.com

    That may answer some questions.

    Be in touch.
    Brent

    Comment by brentlane — June 26, 2008 @ 4:31 pm | Reply

  4. Hi, We moved into a home about 18 months ago accross country, my husband has been working at a company and things are not going to be improving so we are planning on returning to the west coast. Now our home was bought with a conventional loan at @ 6.75% and a 45,000 down payment but we are going to be unable to pay our house payment anymore since his job is ending. If we put it up for sale and it doesnt sell what happens to our $45,000 we paid at closing? If the bank takes over do we lose that money ?? We need to get that money to survive !!

    Comment by Kym — September 12, 2008 @ 1:52 pm | Reply

  5. My wife and I bought a home in 2003 and we currently have a fixed 5.65% rate loan at $160,000 and a second home equity line of credit at 14% and is maxed out at $21,000. Our house is only worth $145,000 ($36,000 upside down). Like Brian I am unable to make my next payment (first time ever being late). I am so afraid of what my future will hold. Please help.

    Comment by Ryan — October 7, 2008 @ 8:08 pm | Reply

  6. I had an arm loan and started going backwards and more in debt with it and i refinanced but for alot more than the house is worth,now i am stuck in a low fixed 5.8% but now i am divorcing and cannot afford the payments by myself I have talked with my mortgage company and they won’t help me,and I talked with a realitor and they won’t help me neither because my house is upside down by almost a 100,000.00.Now the mortgage company are the ones that appraised the house for the refi…..what the?So you see I am stuck….and I would like to do the right thing,I don’t know what to do.I have 2 teenage kids and they know I work hard to keep a roof over their heads but now i’m stuck in a house that seems no one wants to help me with.Its a headache.

    Comment by michaelene — October 10, 2008 @ 4:49 am | Reply

  7. first, my husband left me on 10/13/2008 after 32 years of marriage. we had never been late on the mortgage payment or the second on the house. now the payment for october is past due by 22 days. we are upside down on the mortgage anyway. i haven’t worked in years and am not able to do so now because of medical condition. now i have applied for social security disability and have obtained a lawyer for a divorce. still no money coming in for me at this time. i feel like my world is crashing apart. please if you have any thoughts on what to do please respond. i would hate to lose my home since everything is falling apart.

    Comment by candy — October 23, 2008 @ 2:54 am | Reply


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