Negative Equity San Diego

In San Diego County, Some People Owe $100,000 or Even $300,000 More Than Their Home is Worth!!

Our Program VS Loan Modifications Because lenders are not required to lower the balance owed on loan modifications, I have only heard of one instance where the lender lowered the amount owed. They lowered it by 10% and the person still owes 2.5 times what the home is worth. Yes they will lower the monthly payment, but you will still owe a ridiculous amount more than your home is worth. You may have gotten your loan modified. How much did you owe on the loan before the modification? How much do you owe now? I have done loan mods for a little over a year. I have spoken with people that have done hundreds, even a certified HUD counselor, and I have only heard of that 1 case where they lowered the loan balance. Consider this: When do you think home values in your area will start to go back up?

• 2 years?
• 5 years?
• More?

When do you think your home will be worth the amount you owe?

• 10 years?
• 15 years?
• More?

For every $50,000 you owe on your home above what it is worth, with 5% interest on a 30 year fixed, over the next 30 years you will throw away $96,000 At 6%, $107,000. Try This: Figure out how much you are throwing away- First get a ballpark of how much your home is worth- go here and make sure you fill in beds and square footage Then take the amount you owe and for every $50,000 above your homes value add $96,000 if your interest rate is close to 5% and $107,000 if close to 6%. Real Example: Jose & Norma had a mortgage of $435,000 Their home was worth $135,000 Interest rate was 6.25% $300,000 difference or $107,000 per $50,000 thrown away! Without our program, they would have thrown away $642,000! Although Jose & Norma's situation was on the extreme side, the amount thrown away is pretty common. On a wider scale we see San Diegans with homes now worth $300,000 that they owe $600,000 for. The amount they will throw away is still around $642,000. Now try this: Go to craigslist and see how much you would be paying in rent for something like you live in now. I bet its much less! Here is a brief outline of our program: 1- We have your lenders accept what we can sell your home for as payment to fully satisfy the amount you owe. 2- You become a renter for 2 years in a house similar to yours, paying less than you are currently paying monthly. 3- After the two years, you buy a house similar to your original for what it is currently worth.   A Growing Trend One of my clients, Norma and Jose Del Hoya decided it would be better to short sell their Encanto home and their mortgage company agreed they could sell the home for fair market value and then they would owe nothing. The lender, like most lenders, agreed to accept the sale amount as satisfying the debt. The Del Hoyas decided they could rent a similar home for much less than their mortgage payments and then in 2 years buy a similar house for 1/3 what they currently owe. Another set of clients, Rosa & Javier made a similar decision. They were shocked to find out that the same floor plan in their National City complex just sold for ¼ of what they owed on theirs. They plan to do the same as Jose & Norma- Sell now and owe nothing, rent something similar for 2 years at half their current mortgage payment. Then in 2 years buy something similar for ¼ or 1/3 what they currently owe. Currently we are working with a couple in Otay Ranch who owe $420,000 on a home that is worth $260,000. We are rescuing them from throwing away about $307,000. A military couple we are working with owes $230,000 on an Escondido condo that is now worth $80,000. We are rescuing them from throwing away about $321,000. While this appears to be a growing trend, I cannot say what would be the wisest financial decision for you. If you are curious as to how much your home is worth or if you have any questions as to our program, feel free to now Contact Us . All inquiries are confidential. This is not intended to solicit properties already listed with a real estate agent.