Cash is King – Upside Down Mortgage Solutions

October 14, 2008

Upside Down Mortgage: “Hope for Homeowners” FHA Mortgage is the Solution

Learn more about Short Refinancing– Get Your Free Report at the Link above

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




I finally have the details necessary to give you information on the Rescue program that has affectionately changed names to “Hope for Homeowners” (H4H).  (look for my contact information at the bottom of the column)

This program is designed for homeowners of any type who need to refinance their existing upside down mortgage(s).  Of course there are strict guidelines to follow so I will lay out some of them here straight from the HUD website and help you understand what they actually mean to you:

1.    You must have originated your loan prior to January of 2008.
2.    You must NOT be able to afford your current loan.
3.    You need to have made at least six payments on your loan and not intentionally missed payments.
4.    You CANNOT own a second home.
5.    Your debt-to-income ratio needs to EXCEED 31% (front end). See H4H Income Calculation
6.    You must qualify for this loan using full income documentation, which will vary person to person.
7.    You must agree to share equity created at the beginning of your “Hope for Homeowners” mortgage and any future appreciation in the value of your home.
8.    Any existing liens on the property must be removed prior to the completion of this transaction or through this transaction.
9.    Your new debt-to-income ration must be below 31% of your income.
10.    You have until September 30th, 2011 to complete your transaction but you are subject to interest rate fluctuation.
11.    You existing lender must agree to participate in a “write down” or “short pay” on any existing liens.  Look for a great Short Sale Agent

Need more information?

This list is thorough yet incomplete because there is several details that I left out.  Many of you will not need to know these details but if you need more information contact me at:
Brent Lane
RE: Hope for Homeowners Details
Please be specific with your questions because I have limited capacity to respond due to sheer volume of emails.  This way I can help as many people as possible.

Want to hire me to help you with this Refinance?

To work with my team to complete this transaction you must email me with your contact information and I will forward you all necessary paperwork to make complete your FHA Hope for Homeowners.  I also require you to work with a Loss Mitigation Negotiator because their ability to negotiate with lenders will far exceed those of the homeowner.

Brent Lane
RE: H4H Transaction
Please be detailed in your contact information and your request so I have the correct information to help you move forward.

Learn more about Short Refinancing

Watch Our Video at the LINK above.



  1. […] See my New Post […]

    Pingback by Upside Down Mortgage:Getting Your Bank to Work with You « Cash is King — October 14, 2008 @ 7:42 pm | Reply

  2. I am interested in finding out more about the mitigation process. I am current on my mortgage but seriously upside down — 1st, 2nd and 3rd mortgage (3rd mortgage being my swimming pool). House was purchased 2 yrs ago for a total of $430K, home is currently valued (2 months ago) at approx $320K but homes on my block have been foreclosed recently and have sold in area of $275K. I have an interest only loan which will adjust in 3 yrs, then will continue to increase to god-knows-what. I purchased my home with interest only loan because I planned to live here only a few more years and then retire. I make a good salary ($20K), but I have no savings and am 60 yrs old. My only option will either be to walk away and lose my down payment and upgrades I did or mitigate/modify my loan. I am simply not willing or unable to take a hit of this magnitude. I have spoken with several people who have different advice for me. However in reading some of your column, it says I cannot intentionally stop paying my mortgage in order to qualify for mitigation/modification. I am getting ready to pay another mortgage that I know is throwing good money away with virtually no hope of ever recouping what I put into the house. My credit is good, I hate to screw it up — but I will do whatever it takes to work this out. I would greatly appreciate your advice — I’m at my wit’s end and don’t know who to trust. Thanks for your response.

    Comment by charlotte — October 15, 2008 @ 2:09 am | Reply

  3. Ooops! I just found an error! I do not make $20K a year, that was my down payment! I currently make $107,300 from my primary job and approximately $15K from my 2nd job.

    Comment by charlotte — October 15, 2008 @ 2:12 am | Reply

  4. Hi Charlotte!

    Thanks for the comments!

    From what you have listed I feel we have a VERY good chance at completing a Hope for Homeowners transaction for you. You and I need to start out by having a conversation and we can go from there!

    Be in touch.
    Brent Lane

    Comment by brentlane — October 16, 2008 @ 3:49 pm | Reply


    Pingback by Turning an Upside Down Mortgage Right Side Up! Part 1 « Cash is King — October 16, 2008 @ 9:25 pm | Reply


    Pingback by I have an Option ARM Mortgage that is Upside Down? What do I do now? « Cash is King — October 16, 2008 @ 9:29 pm | Reply

  7. We purchased our home in May 2006 for $605k the same home across the street is for sale at $350k. One of the qualifications stated above as: “5. Your debt-to-income ratio needs to EXCEED 31% (front end)”. What does this mean exactly? What is front end? I’ve done my calculation and based on: Gross income, Mortgage payment(1st & 2nd) ours comes in at 28%. But if you through in property tax and homeowners insurance that puts us at 30.5%. We are slowly sinking in our upside down home, in fact the last two months we’ve been unable to make our 2nd mortgage payment. We have four children, two in daycare ($2k/month) and many other bills that are falling behind. Are these taken into consideration? Would we qualify?

    Comment by Don — October 16, 2008 @ 10:45 pm | Reply

  8. Hi Don,

    Front end ratio is a ratio that we use to determine the mortgage payments (including taxes, homeowners insurance and homeowners association dues).

    The calculation is as you stated BUT the lender (FHA) may look at a blended 24+ month average on your income so that could help as well. My suggestion would be to send my some documentation and let me help figure out your income so that we know if you qualify for sure.

    If the ratio is below 31% we are set! First steps are to negotiate with your lenders and I will walk you through that process.

    Comment by brentlane — October 17, 2008 @ 6:47 pm | Reply

  9. I have a problem that tends to be overlooked in this whole housing fiasco. My husband lost his job two years ago, and we have had to relocate. We owned our home and tried to sell it, of course coming in on the negative end of that, we lived apart for 18 months while we tried to figure out what to do. We had help to get into another mortgage on a home where his new job was, and we have renters in the house where we used to live. Here’s the dilemma. We have just gone upside down in the rented house, and it is tanking fast. In the last four months, we have lost $60,000 and it is expected to lose even more. Our renters would love to buy the home, but have less than a stellar credit rating, and our bank refuses to consider a short sale. On top of that, as far as I can tell, we would be taxed on the short sale because it’s not our primary residence anymore, even though we lose $600 a month on it and we were some of the smart ones who were in a mortgage we could afford, it is around 30% of our income. If we could refinance, we would lose the opportunity not to pay mortgage insurance on it, and because of owning two homes and losing money, our credit has taken a nose dive. Any suggestions on how to get our renters’ able to buy the home, lower the payments so we don’t end up foreclosing, or even how to deal with the whole mess? Thanks.

    Comment by Rebecca — October 18, 2008 @ 6:30 am | Reply

  10. I bought a house in 2005 for 630k. It is worth about 350k today. I am current on both loans. First is IO and second is interest and principal. My first mortgag IO is 2457. The second is 870. I am in the military. Do I need to count my housing allowance as income (not taxed but it is on my paystub).

    Also, should I add a principal payment amount to my first loan for the purpose of calculating the debt to income? My wife and I gross about 13000/mo and net about 10000.

    Lastly, would it matter that my second loan balloons at the end of 5 years, Nov 2010, which is also when my ARM adjusts on the first?

    Thanks for the advice!

    Comment by Luke — October 18, 2008 @ 9:11 pm | Reply

  11. Hello,
    We are just lost. My husband is in a Marine stationed in San Diego. We bought our home in October 2006 in Menifee because we couldn’t afford san diego county. Our home was bought for 406K and the same models are short selling for 215k on my street. The problem with us is that we can afford the $3000 monthly mortgage now but barely BUT in one year when we PCS we will not be able to. We will lose our BAH (housing allowance) and will be way in over our heads. Also, I am expecting and will not be bringing in my additional “extra” income.
    How will a short sell affect our credit exactly and for how long?

    Thanks so much!


    Comment by Vanessa — October 20, 2008 @ 4:18 am | Reply

  12. Hi Vanessa!

    I read your comments and I hope I can help you figure out a solution!

    If the house values have dropped as dramatically as you stated then this new
    “Hope for Homeowners” FHA program is a great fit for you and your family.

    The program will bring your mortgage balance down to 90% of the current
    value which will obviously bring that payment down as well.

    If you truly need to sell the home, there is a very specific way to go about
    this to avoid having a significant hit to your credit score. You need to
    work with a professional negotiator who will get your current lender to
    agree to a lower pay-off ahead of missing any payments. Common wisdom is to miss payments
    and then negotiate but this will have a VERY SIGNIFICANT impact to your credit.
    To do this we just need to have a very good set of circumstances and from what you wrote this
    should be easy to show.

    The good news is that both the FHA program and a short sale require very
    similar negotiations and can be done by the same person at the same time.

    Let me know which direction I can guide you and we will go from there.

    Comment by brentlane — October 20, 2008 @ 9:20 pm | Reply

  13. This is indeed an interesting post, it seems that you are an expert in this field. I liked the article its informative especially from people seeking info’s like this.

    There are lots of homeowners nowadays that face this foreclosure problem…
    It is sad to know how this is the truth were in today.

    This is a must read content a good source of information.

    I’ll bookmark this one, and i am looking forward for more of your content.

    Best Regards,
    Craig Leshinger
    National Modification Corp

    Comment by Loan Modification in U.S.A — October 28, 2008 @ 8:07 am | Reply

  14. We refinanced new mortgage in 2006….the first with america’s servicing company and the second with citigroup….1st (305,000) and 2nd (85,000)…the first is fixed at 6% but is interest only for 10years.
    The 2nd is 9% >>>>>>>house value is about 175,000…….would like to modify…mortage is 2400.00 for both.
    I am in construction sales industry…money is tight….I’m at about 30% ratio…other loans and bills
    hurting….what can we do?……

    Comment by Patrick Parks — October 29, 2008 @ 4:44 am | Reply

  15. I wanted to share the results from one of my client’s loan modification direct mail campaigns with you:
    Pieces mailed 20,000 (5,000 a week for 4 weeks in Sept.)
    Phone calls received 811 (Yes over 4% – I tracked it on my toll free number so I can prove this)
    Loan modifications sold 157 (sold means client paid up front)
    Price he charges for loan mod $2,500
    Total revenue from mailer $392,500
    Cost for direct mail $11,000 (I know it sounds expensive but I can do cheap mailers if you want to make less money)
    Many companies can send a mailer out for you but we have a proven letter and have perfected the data so you will have a high response rate and closing ratio.
    Our data includes a combination of: Homeowners 30, 60 and 90 days late on their mortgage, high LTV, Adjustable rate loans with specific lenders (who are willing to modify), specific refi and purchase dates, and a couple other things I can’t tell you.
    Please call me if you have $5,000 to $500,000 in your advertising budget for this and you are ready to take your loan modification business to the next level.

    Comment by Mona — October 29, 2008 @ 11:00 pm | Reply

  16. […] Hope for Homeowners: Calculating your Ratio to Qualify Filed under: Foreclosure, Loss Mitigation Negotiation, Loss mitigation, Upside down mortgage, loan modification, mortgage, refinance — brentlane @ 9:41 pm Tags: FHA Refinance, Government Mortgage Programs, Hope for Homeowners, refinance upside down mortgage, short refi, Short Refinance, Upside down mortgage Need Help with Hope for Homeowners FHA refinance program? […]

    Pingback by Hope for Homeowners: Calculating your Ratio to Qualify « Cash is King — November 4, 2008 @ 9:41 pm | Reply

  17. I purchased a very small condo in 2003 for $247,000, my intent was to have a home to live in. I wasn’t looking to sell anytime soon. I had no good understanding or being upside down or falling market prices. I have a interest only only that will adjust in one year. I have tried to refinance before the market turned really bad and was told by my current lender, “oh don’t worry, you should be okay to wait another year or two”. Well needless to say, I adhered to very bad advise. Now when I try to refinance, I have been told, they could do anything for me I am unside down. All I would like to do is refinance to a rate I can still continue to afford. I am not looking to make a profite or sell. My credit has always been good. I am desperate to keep it that way. When my rate increases within a year, I will be struggling to maintain the payments, and would hate to be a the lastest foreclosure victims.

    Is there any help for my situation.

    Comment by karen — November 10, 2008 @ 6:38 pm | Reply

  18. I bought my new home in 2006 for $436,000 before selling my old home. They said I could take a home equity line of credit out of the old home for the down payment of $86,000, and then after I moved, sell that house and take the remaining equity out and refinance the new house. Well, it didn’t sell, and the market tanked. My new house value has gone from $436,000 (currently owe $340,000 on mortgage) to $205,000. My debt-to-income ratio on it is 40%. The old house has no equity left in it. I’m able to rent if off and on, and have had two house payments to make at times. I still owe $57,000 on it, plus the home equity line of credit has grown from $86,000 to $125,000 because I was unemployed for a period of time.

    I see that this program says you can’t own 2 homes, but what about people who are suffering on both? The first home has no equity, so even if I sold it, it wouldn’t help me any. I don’t need help on that mortgage, but altogether I owe on my old house, my new house, and my line of credit. Is there any help for me? So far I’ve been barely managing by trying to work overtime, but my health is suffering; I’m a single parent, and I don’t know how long I can keep this up. Is there any program that would help me in this situation considering I might be disqualified because I own 2 homes?

    Thank you for any suggestions.

    Comment by Marilyn — November 19, 2008 @ 8:27 am | Reply

  19. On the above post, the 40% debt-to-income ratio is only on my new home. When you total the debt from the old and new houses, the interest on the line of credit, and factor in receiving rent on the old house (best case scenario), the total debt to income ratio is 52%.

    Comment by Marilyn — November 19, 2008 @ 8:34 am | Reply

  20. My credit score normally run from 795 to 805. Is this too high to qualify for H4H? How will inquiring or approval for an H4H refinance affect my credit score.


    Comment by Bac Zee — December 7, 2008 @ 5:24 pm | Reply

  21. Hi Zee!

    Credit score is not part of qualifying for the H4H Program! The high score will show the underwriter you are good with your finances and can be a compensating factor when qualifying but not a necessary piece of the equation. Bad credit to marginal credit is expected for this program.

    Hope that helps!

    Comment by brentlane — December 8, 2008 @ 11:11 pm | Reply

  22. I currently own a condo bought for $345,000. Interest only loan. It is now selling in my neighborhood for 220,000. My 1st mortgage adjusts in 2010. And the 2nd is equity line of credit for 69,000. I make 47,000 yr. Can H4H help me! I am severly under!

    Comment by Andre — December 13, 2008 @ 6:40 pm | Reply

    • Hi Andre!

      H4H program is designed to help but as you noticed there are some strict guidelines you need to meet in order to participate.

      If you shoot me an email with more details I will walk you through it all

      Be in touch.

      Comment by brentlane — December 13, 2008 @ 8:21 pm | Reply

  23. I purchased a very small condo in 2003 for $247,000, my intent was to have a home to live in. I wasn’t looking to sell anytime soon. I had no good understanding or being upside down or falling market prices. I have a interest only loan that will adjust in one year. I had tried to refinance before the market turned bad and was told by my current lender, “oh don’t worry, you should be okay to wait another year or two”. Well needless to say, I adhered to very bad advise. Now when I try to refinance, I get there is nothing we can do for you because I am now upside down. I want to refinance to a rate I can still continue to afford. I am not looking to make a profit or sell. I would really hate to be the lastest foreclosure victims.

    Comment by karen — December 23, 2008 @ 11:29 pm | Reply

  24. We are in an interesting situation, wondering if you can help us. We purchased our home in 2003, before the housing boom. We owe about $696,000, our house appraised for about $850,000 about a year ago. Our LTV was always pretty low and our debt ratio (back end) never exceeding 20%. Our house is now worth about $490,000, even with a half acre lot with a completed yard. It is worth less now, than we bought it for in 2003, at $575,000. I lost my job,company closure, after 10 years with the same company, being paid salary plus commission. I averaged anywhere from $200k to $500k per year for that period of time. I did get another job, but now 100% commission, and no salary. Our mortgage payment is $4500 per month plus utilities. Here is my problem…..we have savings and 401k. We can deplete our savings to stay in this home, but may, in the end have to let it go. I have contacted my bank, they will not approve a short sale since they ask for all our assets and will see we have some savings. The won’t even negotiate anything until we are in default. We have a 2nd mortgage that I called on, and offered to get it turned in to a personal note, so we could at least pay it back, but no go, not unless we are in default. Our credit scores are 800, and we really do NOT want to default to get help. The goal is to stay in our home, we do NOT want to leave, but where do you draw the line? If they won’t let you short sale, is it better to walk away? Do you deplete your life savings for a home that will take 10 or more years to come back to at least what we owe? We are, however, in a position to purchase another (smaller) property due to my commission average over the past 2 years. We currently have a 30 year fixed IO loan on our first and a Prin/Int on the 2nd. I don’t see any hope for our situation, so wondering if you could shed some light please. It seems if you are not in default or not on an ARM, there is no help for us. I would just like to stay here, but the payments are just so much, with not having that steady income coming in. I have people that did deplete everything they had and lost their home anyway, with no savings left. (never thought we would be in this position) Just scared and can’t really find any answers. Any advice is appreciated. Thank you very much.

    Comment by Nikki — December 25, 2008 @ 3:53 am | Reply

  25. im sorry, i was so busy venting about hope to home owners high interest rates, that i forgot to ask, is there anyway they can be talked down a point or to on those high rates?? they offered us 7.5, that would keep our monthly payment the same we are paying now, and we are having a hard time finacially trying to do this? we have never been late on mortgage payment, but have aquired debt, but its under 30,ooo
    we make around 4,500 a month with 2,200 payments a month on morgage alone. But FHA wants your gross income and go by that. thankyou

    Comment by GIGI — January 15, 2009 @ 3:49 am | Reply

  26. Hi Gigi!

    The H4H Rates are not exactly the lowest out there but it’s part of the pro’s and con’s on this loan.

    On one hand you have a lower mortgage balance but on the other you have higher rates. Good with the bad I guess.

    Only other choice you have is a loan modification or a flat out refinance where your current bank agrees to a lower pay off!


    Comment by brentlane — January 28, 2009 @ 7:09 pm | Reply

  27. Hello,

    I purchased my home in May of 2006 for 270K. Unfortunately, soon after my husband lost his job. We contacted our mortgage company in hopes that they can lower our monthly payment which at the time was 2300 and we were told no. After a few late payments my mortgage went up to $3200 per month which I was unable to pay. I actually managed to make 3 payments but basically sold all I could to make them. After more communication with the bank they informed me that could not help me and that I would end up in foreclosure. Out of desperation I moved. I placed the home on the market but now it is only worth about 160K. The bank was not willing to do a shortsale. We have tried everything from Loan modifications, to shortsale and nothing. They were also not participating in the H4H program but now are.
    I need to know if I would qualify and if so how long the process would take. My home is empty and I want to go back in the meantime but am afraid going home would backfire on me and what I tried to avoid would end up happening…being evicted.

    Please advise and thank you.

    Comment by Marisol — February 19, 2009 @ 5:21 pm | Reply

  28. Because my family consisted of only my daughter and I, I purchased a small 2 BR home in November of 2004. Soon I got a boyfriend, we became serious, and he moved in. A little while later, we had a baby. My boyfriend made a large room in the basement (no egress window) for us to use as a BR. We put the house up for sale in June of 2007 and married in July of 2007. We made the decision that we would like one more child. We knew we did not have the room, but surely the house would sell within the year?!? Well, we were wrong… We started asking just above what we owed, $97,000, to break even. We just wanted to get out from underneath of it. After almost two years, we still have not had one single offer. The Realtor has gradually reduced the price to $50,000 pending the acceptance of a short sale from my bank. We now have another child that is sleeping in our illegal BR in the basement. He is 8 months old, and will soon need a room (legal one) of his own. We desperately need out of this home. Our family has outgrown it completely. It is a cute little house that would be perfect for a single person, couple or small family; just not ours!! We would like to know… are there any more options??

    Comment by Stephanie — March 7, 2009 @ 1:28 am | Reply

  29. Hi Brent,
    Here is a little senerio for you. We had one of the adjustable rate interest only loans and got into trouble when it adjusted as I was severly injured at work and had to go out on worker’s comp. So just last year in August, we were in forclosure and the lender converted our adjutable into a fixed rate, however, our adjustable was at 11% and the lender only brought our mortgage down to 9.25% which we still could not afford. They would not negotiate any further and so we have been stuck with this high interest rate high monthly payment loan and they will not modify it again. They are saying now that we do not qualify for the government bailout as we have a fixed rate. How can we(if we can)get around their loophole? It seems unfair that they could do this to us. Even some of the negotators have said that they did not understand why they did not drop us back down to the original 6.5%. This amount we could have managed, but now what?
    Can you help with this question?

    Comment by Debra — April 30, 2009 @ 6:25 pm | Reply

  30. […] it didn't help everyone. Down the pipe came some other programs that most wouldn't implement in the Hope For Homeowners FHA Refinance Program and Obama's Making Homes […]

    Pingback by Upside Down Mortgage Relief | Personal Finance — April 8, 2013 @ 2:00 am | Reply

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