Cash is King – Upside Down Mortgage Solutions

March 23, 2009

Upside Down Mortgage: The Reason Why and Opinion from the Pros!

Check out our new BLOG on

Coping with an Upside Down Mortgage:

A Legal Perspective

Mortgage Deliquencies up for the 8th Straigh Quarter

http://news.yahoo.com/s/ap/20090303/ap_on_bi_ge/transunion_mortgage_delinquencies_1

CHICAGO – The number of people who were late making their mortgage payments shot up 53 percent in the fourth quarter of 2008 from the same period in 2007, according to data provided by TransUnion LLC.

The credit reporting agency said its database shows delinquencies — or the percentage of mortgage holders at least 60 days behind on payments, considered a precursor to foreclosure — jumped to 4.58 percent nationally, from 2.99 percent for the 2007 fourth quarter.

That was 16 percent above the 3.96 percent rate seen in the third quarter, TransUnion said, and marked the eighth straight quarter that deliquency rates rose.

“It’s about what we were expecting,” said Keith Carson, senior consultant in TransUnion’s financial services group. But while not unexpected, the huge jump from last year was still “alarming,” Carson said.

TransUnion, best known for its consumer credit rating data, projects delinquency rates could reach as high as 8 percent by the end of the year. The company isn’t predicting that the climate will improve until the middle of 2010.

The states that have shown the highest delinquency and foreclosure rates remain the same. Florida is on top, with a 9.52 percent rate for the fourth quarter, while Nevada is second with 9.01 percent. Arizona came in at 6.93 percent and California right behind at 6.88 percent. Carson said there is a glut of homes in those states, which is combining with increasing economic woes and declining home values to keep the rates high.

North Dakota, at 1.21 percent, remains the state with the lowest delinquency rate.

The figures are culled from TransUnion Trend Data, which consists of 27 million consumer records randomly sampled each month from the credit reporting agency’s national consumer credit database.

While the government has launched efforts to stem foreclosures, those moves are not yet reflected in data, Carson said. Banks are also trying to work with consumers to reduce problematic mortgages, but falling home prices are feeding the problem, he said. “We do know from everything we’ve found out in the last year is that the primary driver on mortgage defaults is negative equity,” he said. When homeowners owe more on their mortgages than the houses are worth, data show a higher likelihood that consumers will simply walk away, he said.

California is the state with the highest average mortgage debt per borrower, at $356,421. West Virginia has the lowest, at $96,243.

Lenders are trying to address some negative equity issues with refinancing, but Carson said data shows the rate of redefault on modified mortgages “has been very high, primarily because of negative equity.”

Find Secrets to Refinancing your Upside Down Mortgage ……

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

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February 18, 2009

Upside Down Mortgage: Obama’s New Rescue Plan

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Refinance an Upside Down Mortgage”

“Housing Secretary Shaun Donovan stressed that homeowners don’t need to be delinquent in order to get help.” – This comment has to be the best news for many homeowners out there who need the help but also want to keep their great credit!”

This quote about says it all to most people.  It came from a recent article released by the Associated Press (AP).

This answers the most common question I get when “how to handle an upside down mortgage” and “solutions to an upside down mortgage”.

The rest of the article can be found here at Upside Down Mortgage Solutions.

January 8, 2009

Citigroup and Bankrutcy Judges Join Forces to Save Homeowners from Foreclosure

Learn more about Refinancing an Upside Down Mortgage- Get Your Free Report Here

News came out today that may help many homeowners who are facing problems with their mortgage.  Letting your house go because the home is upside down and you need help start with my free report and if that only wets the appetite then move on to my free video series on Refinancing an Upside Down Mortgage

You can also find help from my friend who is the Sacramento Short Sale Agent I recommend

Democratic lawmakers reached an agreement with Citigroup Inc. on a plan to let bankruptcy judges alter loans in an effort to prevent homes from going into foreclosure. Other lenders are expected to follow suit.

Known as “cramdown,” the rewrite would let bankruptcy court judges erase some mortgage debt to help bankrupt homeowners better handle their payments, subject to strict conditions.

The legal reform would help “millions of families save their homes,” said senators Richard Durbin of Illinois, Charles Schumer of New York and Christopher Dodd of Connecticut.

Michigan Democratic Rep. John Conyers has introduced the mortgage bankruptcy measure in the House of Representatives.

Under the terms of the reform as agreed, only mortgages entered into prior to the date of enactment of the bill would be eligible for the treatment, the senators said.

Homeowners would have to certify that they have tried to contact their lender before filing for bankruptcy, they said.

Only major violations of the “Truth in Lending Act” would invalidate creditor claims on bankruptcy, they said.

Schumer said his office has contacted top bankers nationwide and some said they would be supportive.

Officials at other top banks — including Wells Fargo (WFC.N), Bank of America (BAC.N), SunTrust (STI.N) and JPMorgan Chase & Co (JPM.N) — were contacted by Reuters but had no comment.

This latest adjustment to Bankruptcy law will help homeowners avoid any possible foreclosure and allow for someone other than the bank to make adjustments to the toxic mortgages that have plagued homeowners facing foreclosure.

Learn more about Refinancing an Upside Down Mortgage– Get Your Free Report Here

December 19, 2008

Mortgage Loan Modification: FDIC, Fannie Mae and Freddie Mac Are Here to Help Homeowners.

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

Need help with a mortgage loan modification of If you are behind on your mortgage payments

this column will provide you with some useful information.

There is a lot of talk these days from all lender, the FDIC and both Fannie Mae and Freddie Mac with regards to mortgage loan modification.  I think its great that these companies and institutions have stepped up to help homeowners but I have also found that many mortgage loan modifications can be potentially dangerous.  You can find out more information on that topic in this post on Mortgage Loan Modification Terms.

IMPORTANT TO NOTE: If you are current on your mortgage payments we can help there as well.  It requires additional footwork but can be done if we provide the bank with a very “good reason.”  I often find it easy to find the reason because it can be as simple and your debt to income ratio or being self employed or you have declining income.  All these things are ‘reasons’ we give to the bank as to why they need to help you with a note modification.

To have me review your scenario please email me at Brent@brentlane.net with Mortgage Loan Modification as the subject

FAST TRACK WORKOUTS FOR DELINQUENT BORROWERS WITH FREDDIE MAC-OWNED MORTGAGES UNDERWAY

Washington, DC – Seriously delinquent borrowers with mortgages owned by Freddie Mac or Fannie Mae can now take advantage of a new Streamlined Modification Program designed to make mortgage payments more affordable so more families can avoid foreclosure and stay in their homes.   The Streamlined Mod Program officially went into effect on December 15, three days after Freddie Mac sent detailed implementation instructions to its servicers.

Announced on November 11, 2008 with the Federal Housing Finance Agency (FHFA), Fannie Mae and the HOPE Now Alliance, the Streamlined Modification Program replaces several time-consuming steps in a traditional loan modification with a faster uniform process that uses standard eligibility requirements and documents.

“This initiative builds on Freddie Mac’s current loss mitigation efforts, which are on track to provide three out of five of our seriously delinquent borrowers with a workout this year,” said David M. Moffett, Freddie Mac’s Chief Executive Officer.  “Our alliance with FHFA, Fannie Mae, and the HOPE Now Alliance will help our industry bring relief to thousands of distressed homeowners.”

Under the Streamlined Modification Program, mortgage and escrow payments can be cut to 38 percent or less of an eligible borrower’s gross monthly income by one or more of the following steps as necessary: reducing mortgage rates, extending the mortgage term up to 40 years, or forbearing part of the principal. To be eligible, borrowers must own and occupy the property as a primary residence, have missed at least three mortgage payments and not filed for bankruptcy.

Borrowers should contact their servicers if they think they may qualify.  At the same time, servicers will be identifying eligible borrowers and reaching out to them through the mail.

If an affordable payment cannot be achieved through the Streamlined Modification Program, servicers will evaluate borrowers through the traditional modification process. Servicers will also continue reaching out to distressed borrowers as early as possible to determine their eligibility for a workout or other foreclosure alternative.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

December 4, 2008

Adjustable Rate Mortgage and Stated Income Loan: How to Handle the Adjustable Part

Learn more about Refinancing an Upside Down Mortgage- Get Your Free Report Here

Let’s roll back the clocks a bit!

Say it’s 2003 and the Real Estate Market is hot as every.  People are buying up new properties moving up, down and sideways.

From a financing point of view, people were refinancing and buying new homes at an incredible pace and at the best interest rates in years. It was common

A simple loan called the Stated Income Loan was being used all over the place to help people either refinance or purchase those large homes.  Many of these loans were adjustable rate mortgages to help lower the interest rate and keep the payment low.

A Stated Income loan is simple to explain.  It allows a high asset holding and excellent credit buyer or borrower to simply put whatever income they wanted on their loan application in order to qualify.  Sounds interesting, no wonder why they call it the liars loan.

Now I want to point out that this loan WAS misused but the original intent of this loan was to be for those high-income earning or self-employed individuals who couldn’t show on their tax returns the required amount of income to qualify for their loan.  Most self-employed people have large amounts of write-offs on their tax returns leaving little to help them qualify for a new loan.  As long as there were assets lenders were willing to lend.

Now this sets up things in the current market.

We have seen property values dip and lending guidelines go from loose to beyond tight.

The Stated Income Loan is a thing of the past and has been eliminated almost entirely.  Even if there were options the interest rates on these types of loans would be extremely high and almost unaffordable.

The government has rolled out help for many homeowners but Self-Employed people are stuck in their loans for a variety of reasons but the biggest dilemma they have is that their loans are mostly adjustable and will increase when their fixed period ends.

This brings up a question, if lending guidelines have tightened some much and there are no longer loans available for people in this category what solutions do they have?

The answer isn’t overly complicated just not what you would expect.  The solution is in the hands of the existing lenders or those who currently hold the loan.  They will have to help these homeowners by way of a Loan Modification.

A Loan Modification will adjust the terms of the existing loan to make it affordable to homeowner.  There are rules that a typical a lender would look at to qualify these folk but this may be far easier than an actual refinance.  Worst case would be a 5 year freeze on the interest rate which doesn’t completely solve your problem but will put it on hold for quite a while.

Another area you could look into is finding your local short sale agent to help you figure out how to get out from under your mortgage.  This is far better than giving up and walking away.

To start the Loan Modification Process you simply need to email me at brent[at]brentlane.net

Read here about Short Refinancing

California Refinance


Steven Chu

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