1. Underwater Mortgage Options
http://refinanceunderwatermortgagehelp.com is the only program that can help homeowners
with 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 more
than 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 are
my 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 out
there is ONLY one real option that will: Reduce Mortgage Loan Amount, Reduce Mortgage
Payment, Reduce Interest Rate, Build Equity into the Property, Homeowner Stays in the
Property, and Increase their Credit Score.
Underwater Mortgage Options #1-Walk Away-Foreclosure
A homeowner may consider walking away from the house, thinking there is no way to ever get
any equity out of the property. Depending on the monthly mortgage payments a person might
be able to buy a BIGGER and BETTER house for the price they are paying each and every
month.
Walking away and letting the bank take the house will damage the credit score (late payments
leading up to Foreclosure); however, if a person is able to get the 2nd house PRIOR to letting
the 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 loan
amount, the bank may go after the homeowner for the difference called a Deficiency
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2. Judgement. Many times the banks will cut their losses and move on, but few banks will do it if
the amount is large enough.
Bottom line: Damaged Credit, Late Payments, Foreclosure, Move Out, Possible
Deficiency Judgment
Underwater Mortgage Options #2-Short Sell
If the homeowner has an underwater mortgage and is in Default (not paying the mortgage) a
person might be able to do a Short Sale. A Short Sale is when someone (usually a real estate
investor) 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 the
homeowner is forced to move out. The bank may come after the homeowner for the difference
from the original amount of the loan and the discounted price (Deficiency Judgment). Many
times the bank take the loss and moves on. This process takes 6-9 months. Many Short Sales
fail due to taking too long.
Bottom line: Damage Credit, Move Out, Time Consuming, Possible Failure, Possible
Deficiency Judgment and Find someone (investor or any person) who wants to buy the
property AND knows how to negotiate a Short Sale.
Underwater Mortgage Options #3-Deed in Lieu
If you are a homeowner who has not paid their mortgage payments and are facing a
Foreclosure, a person may consider a Deed In Lieu. The person has no desire to stay in the
house and wants to preserve their credit as much as possible. However, by this point there are
many 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 property
and sign the house back over to them without going through the Foreclosure process. This will
avoid a Foreclosure from your credit report.
Bottom line: Damage Credit, Move Out, and Late Payments.
Underwater Mortgage Options #4- Sell the Property
If the homeowner with an Underwater Mortgage no longer wants the house they may consider
selling the house. The problem is, since they owe more than the property is worth, will anyone
want to buy a house MORE than market value-the answer is clear NO. The homeowner would
have to bring money to the closing table so that the next buyer is purchasing the property at
market value.
You would be unable to use a real estate agent; since, it would cost more out-of-pocket
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3. expense. A person might consider Sale by Owner, but your still faced with bringing money to
the 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 Property
If the homeowner wants to Refinance an Underwater Mortgage to get a lower interest rate. The
problem is obvious, there is no equity in the property and the bank will not refinance a house
that is upside down. The homeowner would have to bring money to the closing table to get that
lower rate.
Bottom line: Out-of-Pocket Expense.
Underwater Mortgage Options #6-Government Program HARP
Program
It is a program that will allow people to refinance a property from 105%-125% of the
loan-to-value of the property. A person can NOT have any late payments. They are looking to
remove the 125% loan-to-value guidelines.
IF your lucky enough for them to qualify they will lower the interest rate.
The program will not work with most people since the majority of homeowners with underwater
mortgages are over 125% loan-to-value. Furthermore, even if you do qualify for the program
you 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 the
house is worth, Possible Lower Interest Rate, Possible Lower Mortgage Payments.
Underwater Mortgage Options #7-Government Program HAMP
Program
If you are unable to qualify for any other refinance program or if you are delinquent on your
mortgage payments and are on the verge of foreclosing your best bet is often to seek a loan
modification from your current lender. Loan modifications normally reduce mortgage payments
by 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. Typically it extends
the term out to 40 years.
Obama’s new “Home Affordable Modification Program” (HAMP) gives lenders incentive to
modify troubled loans as well. While the program provides government incentives of up to
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4. $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, too
time consuming, and not enough staff.
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-
“Refinance Underwater Mortgage Help” Program
The “Refinance Underwater Mortgage Help” 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, 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
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