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Save Your Property Even If You’re Upside Down in a Mortgage!!

By
Services for Real Estate Pros with Azren Foreclosure Help

 

Many millions of homeowners are upside down in a mortgage loan (meaning they owe more on their mortgages than the home is worth in the current economy). This number will grow in the coming months because home prices are still falling in many areas of the country.

Upside Down in a Mortgage

What Does Upside Down in a Mortgage Mean?

If you’re not familiar with the term “upside down” in a loan, or how the situation arises in the first place, here’s a quick overview. Let’s say you purchased a $500,000 home in 2006, in a city that was experiencing a big real estate bubble (fast rising prices).

With the fast decline in home prices in the last few years, you find that your home is only worth $220,000 in the current market, but you still owe around $400,000 on the house. Since you owe more than the home is worth in the current economy — you are upside down in a mortgage loan. This is also referred to as being “underwater” in the loan. They both mean the same thing.

So What Can You Do?

Some homeowners are trying to refinance their mortgage loans in order to take advantage of low interest rates. But they are hitting roadblocks because they are upside down in a mortgage. Lenders will require you to have a certain amount of equity (ownership) in your home, before they’ll approve you for a refinancing loan. But when you are upside down, you actually have negative equity — you owe more than the property is worth. This is why so many people are being turned away when trying to refinance. They lack the equity needed to get approved.

So, are there any ways to refinance when you are upside down in a mortgage loan? Yes, look into the federal government’s recently announced “Making Home Affordable” program. Your mortgage loan must currently be owned by Freddie Mac or Fannie Mae to qualify. You can look up your loan through the Fannie or Freddie websites. This is the page for a Fannie mortgage search, and this is the Freddie look up.

Save Your Property Even If You’re Upside Down in the Mortgage!!

 

Another great program we recommend is from Bella Homes, a mortgage buyer. You must be upside down to qualify for their program. They currently operate in all states except California. Homes and commercial properties are accepted. This is an excellent solution if you don’t want to move. Learn more about it here, Bella Homes.

 

Corey Dwan
Crested Butte Collection - Crested Butte, CO
Crested Butte Real Estate Expert

Great advice Aziz.

Aug 30, 2011 10:03 AM
Aziz Sattar
Azren Foreclosure Help - Pasadena, CA

Thanks Corey, I would welcome the opportunity to work with you on such mortgage situations in CO. May I send you some info on how we provide a highly valuable service to the strapped homeowner or commercial property owner by email?

We're open for business in every state except California and have agents in 42 states so far that are providing referrals and helping property owners from losing everything to foreclosure or shortsale. And we do not charge any up front or backend fees.

Thanks

Aziz

Sep 01, 2011 09:09 AM