Underwater Mortgage Options
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Underwater Mortgage Options Document Transcript

  • 1. Underwater Mortgage Optionshttp://refinanceunderwatermortgagehelp.com is the only program that can help homeownerswith an underwater mortgage build Equity into their property. Check it out today. Underwater Mortgage Options Has the housing market crashed in your area and left you owing morethan your house is worth? Now you have an Underwater Mortgage (Upside down Mortgage)and your thinking. Do you walk away? Do you let it go to Foreclosure? What about your credit?Try to sell the property? Short Sale? Any Government Programs? and many others. What aremy Underwater Mortgage Options?We will cover the most popular Underwater Mortgage Options available for homeowners.There are programs that will: damage your credit, homeowner pays out-of-pocket expenses,forces homeowner to move out, refinance the property but you still will owe more than its value,and many others that will negatively affect the homeowner,There are many Underwater Mortgage Options to pick from; however, you will soon find outthere is ONLY one real option that will: Reduce Mortgage Loan Amount, Reduce MortgagePayment, Reduce Interest Rate, Build Equity into the Property, Homeowner Stays in theProperty, No Out-Of-Pocket Expense at Closing, and Increase their Credit Score. Underwater Mortgage Options #1-Walk Away-ForeclosureA homeowner may consider walking away from the house, thinking there is no way to ever getany equity out of the property. Depending on the monthly mortgage payments a person mightbe able to buy a BIGGER and BETTER house for the price they are paying each and everymonth.Walking away and letting the bank take the house will damage the credit score (late paymentsleading up to Foreclosure); however, if a person is able to get the 2nd house PRIOR to lettingthe 1st one default, they would have a better credit score to obtain the 2nd property.When the property is sold at Foreclosure and the amount sold for does NOT cover the loanamount, the bank may go after the homeowner for the difference called a Deficiency 1/4
  • 2. Judgement. Many times the banks will cut their losses and move on, but few banks will do it ifthe amount is large enough.Bottom line: Damaged Credit, Late Payments, Foreclosure, Move Out, PossibleDeficiency Judgment Underwater Mortgage Options #2-Short SellIf the homeowner has an underwater mortgage and is in Default (not paying the mortgage) aperson might be able to do a Short Sale. A Short Sale is when someone (usually a real estateinvestor) wants to buy the property, but at a reduce amount from the bank.IF the bank reduces the amount owed, the Real Estate Investor buys the property and thehomeowner is forced to move out. The bank may come after the homeowner for the differencefrom the original amount of the loan and the discounted price (Deficiency Judgment). Manytimes the bank take the loss and moves on. This process takes 6-9 months. Many Short Salesfail due to taking too long.Bottom line: Damage Credit, Move Out, Time Consuming, Possible Failure, PossibleDeficiency Judgment and Find someone (investor or any person) who wants to buy theproperty AND knows how to negotiate a Short Sale. Underwater Mortgage Options #3-Deed in LieuIf you are a homeowner who has not paid their mortgage payments and are facing aForeclosure, a person may consider a Deed In Lieu. The person has no desire to stay in thehouse and wants to preserve their credit as much as possible. However, by this point there aremany negative marks on the credit report due to the late/missed payments.Many people are unaware of this option. Basically, you tell the bank you will leave the propertyand sign the house back over to them without going through the Foreclosure process. This willavoid a Foreclosure from your credit report.Bottom line: Damage Credit, Move Out, and Late Payments. Underwater Mortgage Options #4- Sell the PropertyIf the homeowner with an Underwater Mortgage no longer wants the house they may considerselling the house. The problem is, since they owe more than the property is worth, will anyonewant to buy a house MORE than market value-the answer is clear NO. The homeowner wouldhave to bring money to the closing table so that the next buyer is purchasing the property atmarket value.You would be unable to use a real estate agent; since, it would cost more out-of-pocket 2/4
  • 3. expense. A person might consider Sale by Owner, but your still faced with bringing money tothe table at closing. No equity in a property is hard and it is even harder when it is Underwater.Bottom line: Out-of-Pocket Expense, Move Out, and Hard to Sell. Underwater Mortgage Options #5-Refinance the PropertyIf the homeowner wants to Refinance an Underwater Mortgage to get a lower interest rate. Theproblem is obvious, there is no equity in the property and the bank will not refinance a housethat is upside down. The homeowner would have to bring money to the closing table to get thatlower rate.Bottom line: Out-of-Pocket Expense. Underwater Mortgage Options #6-Government Program HARP ProgramIt is a program that will allow people to refinance a property from 105%-125% of theloan-to-value of the property. A person can NOT have any late payments. They are looking toremove the 125% loan-to-value guidelines.The program will not work with most people since the majority of homeowners with underwatermortgages are over 125% loan-to-value. Furthermore, even if you do qualify for the programyou still have a house where you owe MORE than the house is worth.Bottom line: May Not Qualify, If you do get in the program you still owe more than thehouse is worth, Possible Lower Interest Rate, Possible Lower Mortgage Payments. Underwater Mortgage Options #7-Government Program HAMP ProgramIf you are unable to qualify for any other refinance program or if you are delinquent on yourmortgage payments and are on the verge of foreclosing your best bet is often to seek a loanmodification from your current lender. Loan modifications normally reduce mortgage paymentsby lowering interest rates or extending the loan period. NOTE: It does NOT lower the balance,it may lower the payment, but it stretches out the term of the loan.Obama’s new “Home Affordable Modification Program” (HAMP) gives lenders incentive tomodify troubled loans as well. While the program provides government incentives of up to$1,500 to lenders to process these modifications, the ultimate approval rests with the lender.NOTE: Many banks do NOT do many loan modification’s due to the lack of incentive, tootime consuming, and not enough staff. 3/4
  • 4. To qualify, you must demonstrate financial hardship that puts your mortgage in imminent danger of default. The mortgage must be owned by Fannie Mae or Freddie Mac or by others signed up with the U.S. Treasury to qualify for HAMP. ***Please be aware though that all loan modifications remain voluntary on the part of lenders — the government-backed loan modification programs are not mandatory.*** Bottom line: May Not Qualify, If you do get in the program you still owe more than the house is worth, Possible Lower Interest Rate, Possible Lower Mortgage Payment. Underwater Mortgage Options #8- Freedom USA Investing Refinance Program Freedom USA Investing “Refinance Underwater Mortgage” Program will be able to help homeowners get a lower interest rate, reduce the amount of the mortgage loan, reduce the monthly payments, will increase their credit score, allow the homeowner to stay in their home, and build Equity back into their home. More info about the program please CLICK HERE Bottom line: Reduce Mortgage Loan Amount, Reduce Mortgage Payment, Reduce Interest Rate, Build Equity into the Property, Homeowner Stays in the Property, No Out-Of-Pocket Expense at Closing, and Increase their Credit Score. http://www.refinanceunderwatermortgagehelp.com is the only program that can help homeowners with an underwater mortgage build Equity into their property. Check it out today. Refinance Underwater Mortgage Help Underwater Mortgage Options 4/4Powered by TCPDF (www.tcpdf.org)