Cash is King – Upside Down Mortgage Solutions

July 2, 2008

Turning an Upside Down Mortgage Right Side Up! Part 1

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

Refinance Your Upside Down Mortgage in California HERE

Bob writes in and his upside down mortgage situation deserves a post!  (welcome to your 15 seconds of fame Bob)

His situation is simple to fix but most people don’t know what to do first.

I am going to show him how to do it and if you follow along I will show you as well.

(Note: I am going to carry this over to my other BLOG because I am not sure how long WordPress.com is going to keep my site running, so follow along and change your RSS feed if you need too!)

Brent,
I was reviewing some of your articles and I am very impressed with your advice and credentials.  I was hoping you would be able to provide me with some advice.

I currently own a townhouse in ~~ of which I am about $20,000 upside down on my mortgage.  My loan is for $277,000 total which consists of an 80/20 loan.  My 80% is interest only ARM at 7.75% and the 20 is a 30 year fixed at 13.25%.  As you can imagine I am not making a whole lot of progress on building equity.  I am looking for a way to get out from my current loan and purchase a different house (or possibly rent) so I can get my finances in order.  I am looking for something that is not going to completely destroy my credit.

Any advice that you are able to offer me is appreciated.

Thanks,
Bob

~~~~~~~~~~~~~~~~~~

See my Response and Follow along to my other BLOG

Turning an Upside Down Mortgage Right Side Up! Part 2

Recent POST>

Short Refinance Company

Refinance Upside Down Mortgage in CA


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33 Comments »

  1. we bought our house 3 years ago, for 450.000, now its only worth 370.000, and our interest only loan is up in another year. tried to get an FHA loan, but we are upside down, we cant afford to pay more than what we pay now, we are a 5.5 on first and a 6.6 on the little loan.. what can we do??

    Comment by jose — July 3, 2008 @ 4:21 am | Reply

  2. Hi Jose!

    I tried you via email so maybe this will work better!

    I think you have a situation where I can help. You need to try a couple things but I need more information to give you better advice.

    Email me when you can and I will be happy to help.
    Brent

    Comment by brentlane — July 9, 2008 @ 6:53 am | Reply

  3. I am in the same situation, there are no options it seems except to just walk away. We have the 80/20 loan, both with an ARM, the house is worth 50,000 less than what we bought it for and we can’t afford for our payments to start going up now and no one will refinance ofcourse because of the value. So what can I do about this? Walk away and say forget about it? I just don’t see any other option.

    Comment by Heather — July 30, 2008 @ 4:01 pm | Reply

  4. […] months now and this are constantly changing.  The most up to date information can be found at Turning an Upside Down Mortgage Right Side Up Part 1! or in an article about a Professional Loss Mitigation […]

    Pingback by My Mortgage ARM Adjusted and I Can’t Make My Mortgage Payments! « Cash is King — August 5, 2008 @ 8:20 pm | Reply

  5. […] Upside Down Right Side Up HERE and Professional Loss Mitigation Negotiator HERE! […]

    Pingback by Upside Down on your Mortgage « Cash is King — August 5, 2008 @ 8:25 pm | Reply

  6. Hi there and thanks for the great ideas. My wife and I bought a house a year and half ago for 300K. Our next door neighbor just sold for 225K and we saw a similar house to ours, in the same development selling for 200K. We would love to sell our house but cannot afford to payback 100K. Do you have any ideas or suggestions. Are there any government programs to help forgive some of the loan?

    Thanks in advance for any help,

    Duke

    Comment by Duke — August 12, 2008 @ 12:40 pm | Reply

    • We have a similar situation please help.

      Comment by ann — October 20, 2009 @ 8:29 pm | Reply

  7. I have a condo. I paid $147,900 in November 2005. My first mortgage is an interest only loan for 118,320 and my second mortgage is $29,580. The property is only worth $94,000! It is set to adjust in November 2010. I have not missed any payments! What can I do?

    Comment by James — December 16, 2008 @ 3:01 am | Reply

    • Hi James!

      I think you and many homeowners like you will find that if you have a balance that is less than $50K upside down the bank will be receptive to helping you make adjustments.

      It’s the larger loans that are upside down by more than $150K that will have a tougher time making adjustments but with the correct approach anything is possible.

      Hope that helps!
      Brent@brentlane.net

      Comment by brentlane — December 16, 2008 @ 5:49 pm | Reply

  8. I AM UPSIDE DOWN IN MY MORTGAGE AND WOULD LIKE TO REFINANCE MY MORTGAGE

    JB

    Comment by janice brown — December 27, 2008 @ 7:13 pm | Reply

  9. My loan is upside down. We are at a now 30 year fixed with Chase at 8.8%. The loan started out as a 7 year conventional loan and then Chase at the end of the seven years(2008) stated that they converted it to a 30 year fixed at the existing rate of 8.8%. We tried to refinance to a lower rate but found that we were upside down.Current appraisal is 178,000 we owe 223,000. We tried to go to Chase for a loan modification but were denied. We want to keep our home and just want a lower manageable rate . Can you help?

    Regards,
    Brian

    Comment by Brian Lingerfelt — January 9, 2009 @ 3:38 pm | Reply

  10. Hi Brent, I was hoping to get some advice. We purchased our home at $475K and our neighbor (same model home) is selling theirs for $275K. We have a Cal-Vet loan at a fixed 6.1% for 30 years. Our credit is nearly perfect and don’t really want to screw it up by foreclosing on a house. But we also don’t see a point in paying our mortgage when the value of our house has dropped so low. Any advice or programs you know of that we could qualify for?

    Comment by Nicole — January 9, 2009 @ 11:04 pm | Reply

  11. Hello Brent:

    I have a similar situation of upside down mortgage with Chase. I have called them to request for a reduced pay off mortgage but was denied. Please advise.

    Comment by Vinay — January 17, 2009 @ 1:43 pm | Reply

  12. Hi Brent,
    We are in a similar situation. My fiance took an upside down house in the divorce two years ago in lieu of having to pay the mortgage AND the lawyre any longer. Currently the home is valued at ~$250-260k. Two homes sold in the last month at $255k that are comps. We are paying a ridiculous amount on two mortages (~$2600/mo combined- current balance: 1st 224k @ 5.85%, 2nd 57k @ 8%)so we really have no extra cash. We have exhausted all of our avenues including trying to short sale (2nd mortgaged denied it, but 1st accepted it as long as the 2nd accepted), trying to refinance (clearly not working), we tried to get an FHA 203k loan which we are still waiting to hear back on although it doesn’t sound promising.

    We are not willing to walk away and foreclose, although my name is not on any of the loans. We could start fresh on just my credit, but I cannot get qualified for loan on a home large enough for us to live in (children complicate this picture greatly). I just think that it’s ridiculous that there is NOTHING we can do when we both have PERFECT credit. We can get approved for any loan our hearts desired… IF the house qualified. Please help with anything we haven’t thought of.

    Comment by Steph — July 14, 2010 @ 3:55 pm | Reply

  13. We are up side down about $60,000 on our and owe $400,000 on our home, my husband and I are retireing in March, our income will be almost cut in half, and we can’t sell the house. Any government programs availible for us that won’t hurt our 850 fica score but reduce our payment so we can stay?

    Comment by sandra brown — February 3, 2011 @ 8:34 pm | Reply

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