Many upside-down homeowners have found a way to take advantage of this incredible buyer's market!
I talk to people daily who express frustration about the fact that they must continue to make payments on a home that is significantly upside-down. They watch as their neighbors abandon properties, either due to hardship, or because they are simply sick of paying for a home that will possibly never be worth what it once was. Then they watch helplessly as new buyers come in and buy the abandoned home at a deep discount, further submarining their property value. So, why don't they follow suit? For many, walking away from their responsibility is not something they can comfortably do.
What is an upside-down homeowner to do?
Many homeowners decide that the best strategy is to call their bank and try a loan modification. Unfortunately, the reality is that 96% of loan modifications fail. Typically, as a condition of being considered for a loan modification, they are told by their lender that they must miss payments, which causes havoc to their credit score. And in many cases where the modification is granted, the new payment ends up being higher due to the fact that the accumulation of missed payments is lopped onto the new loan balance. You may be like these frustrated homeowners who don't want to ruin their credit by defaulting on a loan. You may not qualify for a short sale. Or you may not feel right about walking away. However, you wish you could take advantage of the best buying market in decades. Guess what? You may be able to!
What?! I can buy an investment property?
Quite possibly. I had lunch today with my favorite lender, Roland Benson, with iMortgage (916) 768-1578. He said that while most large banks will not fund this type of loan, iMortgage is a direct lender and does NOT impose extra restrictions. Because of this freedom, Roland's company has success getting these loans funded and closed!
Here's how it works:
- Find a property you would like to buy. If you don't have an agent, I can help you. Contact me.
- Contact Roland Benson with iMortgage (916) 768-1578.
- Most properties in this market can cover their own mortgages through rental income.
- As long as your credit is intact (i.e., you have not missed payments by attempting a no-win loan modification), you are likely good to go.
Many people have no idea that this is an option. I sure didn't until I talked to Roland today. Take advantage of this great market and go buy an investment property today!
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