Cash is King – Upside Down Mortgage Solutions

July 18, 2008

HOPE NOW Fails to Deliver, Now What? Part 1

Here is yet another email writer/reader and my response!

(Note: thank you all for writing in and if you do write, please be patient, I DO get back to everyone but it takes time to get through them all)

I think you will find this to be one of the best emails I have had as it covers quite a bit of information that is relevant to many people!

(I have made a few edits to help bring across the point better)
Hi. I read you WEB site and hope you can be some help to me. I too am in an ARM that re-sets to a higher payment that I cannot make. I’ve worked With HOPE NOW to create a budget to show to my lender – Nation Star – that I will not be able to make the new payments. I have not had positive results with Hope Now or speaking with my lender.

My lender states only 6 months freeze is allowable and Hope Now is basically not worth the trouble or efforts I made with them to date. Adding to my troubles is my house value has dropped considerably my appraised value was $490,000 and it currently valued at $309,000. Real Estate market in my part of California is a long wait for new and even foreclosed homes, so a short sale may not work for me.  I even tried to use FHA loan with my current lender (Nation Star), but was told I did not have enough equity and the application was turned down.

I am wondering what my options are and I am waiting to see if this new FHA law I heard on the new will be of any help. I would like to stay in house. I can make the current payment – its’ hard- but I can do it. Any suggestions from you are greatly appreciated.



Follow along and read learn how to handle things when the


Hope Now

Mortgage Rate Freeze

Upside Down Mortgage



  1. Refinance does not solve the problem of a bad mortgage signed at the first place. But it might still be a relief from it. So it can certainly be considered.

    Comment by Debra — August 2, 2008 @ 4:44 pm | Reply

  2. Over the past month I’ve been reading tons of articles and advice columns about the housing crisis. None, seem to give advice on my particular situation. I brought a piece of rental property for the sole purpose of selling it at some point to pay towards my enormous student loan expense. Well being inexperienced I brought into a loan with a 80/20 2 yr ARM. This place has been nothing but trouble since I brought it, from horrible tenants, to it just being a money pit, to the association being dead broke. Here are my issues:
    1. At this point in time the apartment is empty and I cannot afford the $1079 a month mortgage on my own without a tenant. Even when I have a tenant, I can only charge so much for rent and end up paying a portion of the mortgage out of pocket anyway. So when the ARM adjusts I know I won’t be able to afford it regardless.

    2. I keep being told about these short sale options but even if I was able to qualify for one with my lender, I’m told I’d be hit with a huge IRS bill and I don’t qualify for the debt forgiveness bill because this isn’t my primary residence.

    3. Even if I make it to the 2 year mark and I sell it without a prepayment penalty, I still am upside down in the mortgage so I’d end up having to pay the difference regardless.

    It seems no matter where I turn I hit a dead end. It’s getting to the point where walking away from it is seeming like a better idea every day. I can’t financially manage this property as it is, and it’s going to get worse in March of 09 when the rate adjust. I can’t even sell it and refinancing seems out of the question when I owe more than it’s worth. Is walking away really my only option here?

    Comment by Daphne — August 3, 2008 @ 2:10 am | Reply

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