Cash is King – Upside Down Mortgage Solutions

September 17, 2010

Underwater Mortgage Help – FHA Short Refinance Program

// Homeowners who have seen their home’s value drop over the past months may have options in dealing with their underwater mortgage through a new FHA short refinance program. Homeowners who might qualify for this program could see a principal reduction on their underwater mortgage and have the opportunity to refinance for an FHA home loan, which could bring a more affordable mortgage interest rate and lower monthly mortgage payment.

Many homeowners who own more on their home than their home is actually worth are obviously in a very difficult financial situation, especially in cases where a homeowner’s monthly mortgage obligation has become problematic due to the loss in property value. Interest rates on home loans are quite low at the present time but underwater homeowners have been unable to refinance for a more affordable mortgage rate and possible mortgage payment since they have negative equity in their home.

Yet, it’s hoped that this new Federal Housing Administration program will bring more options to homeowners in an underwater mortgage situation so that they may make their home loan payment more affordable and avoid foreclosure. However, there have been some concerns over whether this program will be successful due to the fact that mortgage servicers will be required to offer a principal reduction before homeowners may qualify.

Mortgage servicers have been reluctant to offer principal reductions in some cases and since another qualification of this program is that a homeowner must be current on their home loan payments, it’s believed that mortgage servicers may not offer principal reductions in cases where homeowners can still meet their mortgage payment requirements. However, homeowners who may be struggling to stay current on their home loan payments may find assistance through this short refinance opportunity as long as their mortgage servicer will work with them to provide more affordable mortgage payment options.


July 1, 2010

Underwater Mortgage – Strategic Mortgage Defaults

It’s amazing to me that people are so shocked when someone says they are no longer going to make payments on their home that has a underwater mortgage.  Look at what they are saying, they simply see that their payments are going towards a dead asset or in this case their mortgage.  They just don’t see the point as they are the glass half empty type of people.  You know these folks everything is a negative thing ahead of the potential positive outcome.

It becomes an ethical question at this point, make your house payments or stop paying and walk away.

If you have been here before I have addressed the common response of walking away from your home as something that should never happen.  I truly believe that you need to fight to find solutions before resorting to the easiest course of action.  It’s just easy to walk away and it’s HARD to stay in and fight with your bank or lender to make things work “The Right Way”

“The Right Way” is fighting for a desired outcome and not taking the path well traveled.

1. Attempt a loan modification –  This is difficult to accomplish and will often require duplicate work on your end just to have them look at your paperwork.

2. Attempt a Short Sale – this is selling your home for less than the loan amount.  It is very common these day and there are some very good Short Sales Agents out there so just go find one you like and make it work.

3. Try a Short Refinance – This is not easy but it is possible to refinance your home for less than you owe.  You need to demonstrate a hardship and if done correctly you can get your balance reduced and you remain in your home.

4.  Sell and rent back – this is more complicated but can be done if you absolutely want to stay in the home you currently own.  You also might get lucky and be able to buy the house back for less shortly after you short sell it to the investor.

Many times people don’t work through all their options because it is just TOO HARD!  There is a whole lot of emotional stress when it comes to dealing with your mortgage.  I guess anytime you deal with finances it seems to be difficult.  Just know you have options and that figuring out those options is not that difficult.


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

November 4, 2008

Hope for Homeowners: Calculating your Debt-To-Income Ratios to Qualify

Useful Information:

Upside Down Mortgage Help Get started Here!

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

Need Help with Hope for Homeowners FHA refinance program?- Start with a foundation in Upside Down Mortgage Solutions HERE!

In an effort to help those in need who want to calculate their income and ratios on their own I thought I would use an email I just received and how we can learn from our mistakes!

Dear Brent:

I received your email concerning the “H4H” program and would like to use your team.  However, we currently do not qualify due to the “31%” mortgage debt to income ratio requirement.

Our current gross income is 131,050.16.

Our current mortgage payment is 2381.00 per month.  That does not include homeowner’s insurance or property tax.  Our property tax this year was $3740.84 and our insurance was $1281.00.  The total of these two amounts is $5021.84, which divided by 12 is $418.48.  We currently put aside 520.00 each month in a savings account in order to pay these “escrow amounts” ourselves.

When {company “W”} corporation first started servicing our loan, I tried to set up an escrow account with them, but encountered such difficulty with their customer service that I decided to pay the taxes and insurance myself.  Also, so far I have been unable to get them to divulge exactly who owns our loan.  They just keep offering to “modify” our loan, but when I ask who owns our loan so that I can avail myself of the “H4H” plan, they say that they don’t know, they just repeat that they only “service our loan”.  Isn’t it illegal to deny this information to me?

I used these calculations to determine our “front end mortgage debt to income ratio“–gross income $131.050.16  divided by 12= $10,920,84, multiplied by .31 =3,385.46.  So we spend 2799.48 on housing per month, but we are not spending 31% which would be $ 3,385.46.  If I calculate it using the $520.00 figure that I actually put away in savings for our escrow we spend $2901.00 for housing, which still falls short.

However, our loan is an “arm/balloon payment” loan that is due to start adjusting in December,2009.  We are trying to take proactive measures in order to avoid a situation where we cannot afford our payments.  We owe 380,949.69 on our loan, and the last time I looked (l ast month) our house value had gone down to app. 230,000.00.

So you see we are “upside down” and face major difficulties when the “arm” starts to adjust.  Is there any assistance you and your team can provide?  What do you suggest that we do?  We thought that we had a 30 year fixed rate when we got the loan because that’s what the loan officer for [company B] kept saying on the phone; when we signed the papers we stupidly did not read them well enough and now have this terrible “ARM” loan hanging over us.  Also, we should be able to get a better rate than 6.985% which is what the rate is right now.  Please write back and advise us.  We would love to use your team if there is any way you can help us out of this mess.  Also we need to know if mitigating our loan will impact our credit scores. Thank you very much!!!! L M


Hi L!

Thanks for the email!

I appreciate all the detail!  It makes my response more useful!

OK let’s take a look at your situation.

It is important to use the correct gross income.  If you are a W-2 employee then it is straight forward BUT if you are a 1099, receive bonuses or are a self-employed person there are additional calculations that need to be considered.  Your income will probably be the most important calculation we make because if we can prove you have less income using different tax records then we need to be doing so to help you qualify.

Next, using the right mortgage payment is important.  You are on the right track with your numbers above so it would come down to your income to determine if the underwriter would truly use all $131K of that income.

Being upside down isn’t the end of the world it is only a minor speed bump.  We need to handle the situation differently but that is easily done.

If the H4H program isn’t a good fit there are other choices for us out there!

When you get some time give me a ring and I will walk you through the process and the paperwork.

Be in touch.
Brent Lane

As you can see calculating the income and mortgage payments correctly are very important in qualifying for the Hope for Homeowners FHA refinance.  If your are slightly off on your numbers then you may head in the wrong direction.

If you need additional help figuring out your income or if you have a complicated situation then please feel free to contact me!

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

Learn the Basics and Foundation to Coping with an Upside Down Mortgage




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.

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