Cash is King – Upside Down Mortgage Solutions

June 11, 2009

Fannie Mae Solves Upside Down Mortgage Refinance Issue



Fannie Mae has stepped in to help!


Refinancing Upside Down Mortgage has a new face and Fannie Mae is leading the charge.


They are now allowing homeowners the ability to refinance their Upside Down Home Loan  with relative ease.

I have put together some educational videos that will walk you through the steps to help you through the process of  refinancing an upside down mortgage.

Click the LINK below and I will tell you how to start the refinancing upside down mortgage process.



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

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”

December 2, 2008

Coping with an Upside Down Mortgage Part I

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

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

I recently teamed up with my Attorney friend Steven Beede and he and I have decided to produce a series of BLOG posts and CD’s  to help individuals and families Cope with their mortgage during this tough time.

You can expect to have this series available within two to three weeks with details coming out periodically along the way.
The series will include:

  • Information on the process and how it will impact you in the future
  • Credit impact for any decision you make
  • Legal implications moving forward
  • Who to contact when Refinancing an Upside Down Mortgage
  • Who to contact when you need to short sale your property
  • How to handle a second mortgage to avoid any future legal and financial issues
  • Modifying your mortgage properly


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

April 6, 2008

Upside Down Mortgage:Getting Your Bank to Work with You

Listen in on a Interview I did on Loan Modifications and the

Fannie Mae and Freddie Mac Streamline Loan Modification Program


See my New Post

Refinancing Upside Down Mortgage

“Refinancing SECRETS for an Upside Down Home Loan that Banks Don’t Want You To Know because it will Cost them THOUSANDS of Dollars!”

Follow the Link here “Refi Secrets for Upside Down Loans!” 

It is estimated that 1 in 10 homeowners with mortgages are upside down in their homes, as of March, 2008.

As alarming as that is, the projection is that as home values continue to plummet, 1 in 3 home owners will be upside down by the end of this year, 2008. Let me just take a moment to explain exactly what I mean when I say upside down. It means that you owe more than your home is worth. Another term for this situation is “underwater.”

A good example would be a friend of mine who has a house he built in Tampa, Florida, and has just moved into it from Long Island, NY. He owes $295,000 on it and the builder is now selling similar houses for $185,000. My friend is seriously underwater.

Not only that, his mortgage will adjust in a year to a number that will probably push him into foreclosure. He no longer wants the house. What he doesn’t know, is that neither does the bank! They do not want a house that is worth less than the financing on it sitting on their books.

Loss Mitigation can be his solution.

This is the process of mitigating or lessening the losses associated with assets, in this case homes.

It is a department in a bank and it is also the process of negotiating a solution that will mitigate losses for both the bank and the homeowner, typically allowing him to stay in the house so that it does not drag down the bank’s balance sheet.

Could my friend negotiate his own loss mitigation deal? Yes, he could also remove his own appendix, but the outcome in both cases would probably be disaster. Were he to call the bank, he would be ill prepared for what he will likely encounter.

First, he will have difficulty finding the right person to help him.

Second, if he eventually stumbled upon the loss mitigation department, they would probably not talk to him because he is not delinquent or in foreclosure and he would not get anywhere.

His best chance is to be represented by a loss mitigation professional negotiator.

This is someone, usually a former banking insider or mortgage broker, who is now working on the other side of the desk, helping those who are in trouble with their loans. He will know where the bodies are buried in the bank and will be familiar in many cases with the specific personnel in the bank’s loss mit department.

If the homeowner can show that his DTI, Debt to Income ratio, is under 50% now, and he has proved that he can make his present payments but would go to a 60% or higher DTI upon the reset of the loan; the loss mitigator is in a good position to negotiate a loan modification that would recast the loan without the scheduled increase.

Although the homeowner’s DTI is simply calculated by dividing his income by his total monthly debt load, the homeowner may include or exclude items or report them in a manner that will quickly get his proposal shot down by the bank.

Say he is paid weekly, bringing home $1,000/wk. He puts his monthly income down as $4,000/Mo.

In reality, there are 4.3 weeks in a month, so he is short changing himself by $300/mo. Not a big deal?

What about something as simple as reporting the cost of food for a family of four, for instance? The homeowner may report their actual figure of say, $800 month. He has no way of knowing that the bank is satisfied with a pro forma, $100/person/month figure for food. So now, he has short changed his income by $300/mo and overstated his expenses by $400/mo. Such a net swing of $700 month could easily push his DTI into the rejection zone.

The loss mitigator, on the other hand speaks the bank’s language, knows and understands their criteria and procedures, allowing him to help the homeowner tailor his situation to satisfactorily meet them.

The alternative to the bank is not a positive one.

The homeowner stops paying. They bring a foreclosure. The house does not sell at auction so they have to continue it on their books as a non performing asset which is a black mark on their finances.

It has been observed that the total cost to the bank to take a house back, in terms of lost interest payments, legal fees, administrative fees, maintenance, repairs, taxes, insurance, broker fees, etc; including the loss on the house when it is eventually dumped on the market at a fire sale price, could easily total $50,000 or more!

It just makes more dollars and sense to have the homeowner in the house, making payments he can afford while keeping a non performing loan off their books. That is the outcome of a successful loss mitigation.



Copyright 2008 Bill Young
Bill is the Director of a nationwide loss mitigation network. If you are a real estate professional looking to augment or replace your regular income, the loss mitigation industry could be your answer. More information Click here: http://Loss-Mitigation.Info or call Bill at 646-961-3818

March 8, 2008

Upside Down on your Mortgage

Read my most recent article about

Upside Down Mortgage Right Side Up

I just read an article on and they gave the obvious options for people who owe more than their home is worth.  Those of you who have visited my site before know that you have options when it comes to being upside down.  Loan modification and doing a short sale are two very good options but leaving out one major idea could be detrimental to some  homeowners.

Refinancing can actually still be done even if you owe more than your home is worth but you really should have a first and a second mortgage.  I have written about this in a few articles so look here and here for more details.  Best of luck to those who are in trouble, never give up and fight to the end to same your home because you will be glad you did in the long run.    If you need further information or want help with a specific question please comment below or email me at


Refinancing SECRETS for an Upside Down Loan that Banks Don’t Want You To Know because it will Cost them THOUSANDS of Dollars!”

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