Cash is King – Upside Down Mortgage Solutions

March 4, 2009

Upside Down Mortgage: Obama’s “Making Home Affordable” Program

“This article has been out for several months now and this are constantly changing. Find More information at my new home page Short Refinancing

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The Obama Camp is launching the “Making Home Affordable” program designed to help homeowners who are Upside Down on their mortgage.

The details of the program are not all available but they do lay out the required paperwork and a few guidelines.

“It’s not intended to prevent every foreclosure or to help every homeowner,” a senior Treasury Department official told reporters. “It’s really targeted at responsible homeowners.”

I guess the hidden good news is that if you have an Upside Down Mortgage and you are paying you payments on time this is the plan you have been waiting for.  No more sneaking around or trying to force something down the throats of the lenders.

“I’ve just seen so many of the programs not work,” said Pava Leyrer, president of Heritage National Mortgage in Randville, Mich. “It gets borrowers hopes up. They call and call for these programs and we can’t get anybody to do them.”

Read More about “Making Home Affordable Program“…….

Learn More about Short Sales Here!


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 10, 2009

Loan Modification: Fannie and Freddie Streamline Modification Program

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

“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”

The Federal Housing Finance Agency, the regulator of Fannie Mae and Freddie Mac, recently announced a new Streamlined Modification Program that is designed to help struggling borrowers avoid foreclosure by having Fannie Mae work with mortgage servicers to do a loan modification into more affordable terms.

You may qualify for a loan modification if all of the following are true:

  • Your mortgage loan is owned by Fannie Mae or Freddie Mac.
  • Your mortgage loan is 90 or more days past due.
  • You occupy the property as your primary residence and must be a one-unit property.
  • You are not in bankruptcy.
  • Loan originated prior to January 1, 2008
  • Your Debt-to-Income Ratio needs to be at 38% using current paystub (another obstacle). See Mortgage Debt-to-income Ratio Information
  • You will need to write a hardship letter so go to Sample Hardship Letter here.

To achieve a more affordable mortgage payment through a loan modification, your loan servicer may:

  • extend the term of your loan to as much as 40 years
  • reduce your mortgage interest rate for a period of time
  • defer payment of part of your principal, or
  • or offer a combination of all three.
  • Principal write-downs and principal forgiveness are prohibited. (This is HUGE)

Modification Options

Through the SMP, servicers may change the terms of a loan to reduce a borrower’s first lien monthly mortgage payment, including taxes, insurance and homeowners association payments, to an amount equal to 38 percent of gross monthly income. The changes in terms may include one or more of the following:

  • Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law;
  • Extending the length of the mortgage loan as appropriate;
  • Reducing the mortgage loan interest rate in increments of 0.125 percent to an interest rate that is not less than 3 percent. If the new rate is set below the market interest rate, after five years it will step up in annual increments to either the original loan interest rate or the market interest rate at the time of the modification, whichever is lower;
  • Forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced.

What You Can Do Today
If you are about to fall behind, or have fallen behind on your mortgage payments, or if your loan has been referred to an attorney, the most important step you can take is to get help early from your mortgage lender, servicer, or housing counselor.

Here are important steps to take immediately:

  • Call your lender or loan servicer to talk about your situation. You can find the contact information on your monthly mortgage statement or coupon book.
  • Gather the information you will need. You will be asked to provide:
    • letters or communications from your lender,
    • foreclosure notices,
    • recent mortgage statements showing your loan number,
    • homeowner’s insurance policy,
    • last two pay stubs and most recent tax return for all borrowers named on the mortgage,
    • proof of other income, such as child support, alimony, Social Security, or pension,
    • bank account statements, and
    • list of major monthly bills, including child care, utilities, credit cards, and cell phone.
  • Understand your options. Depending on your situation, you may have several options to discuss with your servicer or counselor. They could include:
    • Repayment Plan — You may be able to catch up on missed payments by creating a schedule for repaying the past-due amount.
    • Advance — If your mortgage is owned by Fannie Mae (your servicer has this information), and your missed payments are due to a temporary financial hardship, you may be eligible for an unsecured personal loan, such as HomeSaver Advance™, that is available from your servicer to help you get current with your payments.
    • Modification — In some cases, mortgage loan terms can be changed on a temporary or permanent basis to make the payment more affordable.
  • Avoid foreclosure rescue scams. Don’t become a victim. Foreclosure scams seek to take advantage of your situation.
  • Your financial situation may have changed significantly since you qualified for your home due to unemployment, divorce, job change/relocation, or medical issues. You may want or need to sell your home as a result of this change. There are options for borrowers who are worried about possible foreclosure:
    • Pre-foreclosure or Short-Sale — Servicers work with borrowers to sell their home and use the proceeds to pay off the loan even if the proceeds are not enough to settle the entire balance.
    • Deed-in-lieu — Borrowers sign over title to the property to Fannie Mae without the expense of foreclosure.

You have more options if you act quickly. Now is the time to ask for help!

Thanks to Mr. Mortgage here are some potential consequences for accepting the terms of a Loan Modification!

Home owners!  Accepting this ’solution’ means you:

  • acknowledge the full debt regardless of the value of the home;
  • waive all rights to fraudulent or predatory lending claims in the future;
  • turn your loan into a full recourse loan that could follow you for life even if you choose foreclosure down the road;
  • remain underwater, full-leveraged, renter for the rest of your life (in most cases);
  • will save no money at 38% housing debt-to-income ratio plus all other debts; (this is just an opinion and not factual.
  • may not discharge any of this mortgage debt through any bankruptcy even after foreclosure;

If widely accepted by home owners, this will ruin the American consumer and make housing a dead asset class for decades. If you are in a serious negative equity position when signing these forms, as most are, remember that you will:

  • never be able to sell your home
  • never be able to buy a new home
  • never be able to rent your home due to owner occupant provisions
  • be responsible for the full loan amount even if the value of your home keeps dropping for the next 10-years.

I know this is a whole lot of information but I wanted to be sure I made you aware of of everything in one shot.
If you find you don’t qualify or are unsure of what to do next please contact me at brent[at]

Fannie mae has recently added a mortgage program that will help homeowners with an upside down mortgage refinance 2009 giving them some upside down mortgage relief.  I highly recommend looking into no closing cost refinance as a solution to your upside down mortgage

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

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 with Mortgage Loan Modification as the subject


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 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

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