How to keep your home and save your credit

Hello! I'm Shawn Grajeda... President of CSG Investments. I've been in the Real Estate and Lending field for over 6 years now and times have definitely changed. 

Home values have gone down dramatically and home loans are very difficult to qualify for these days. "So, what does the American home owner do? " Most home owners have no clue of their rights, options or legal issue's.

I want to let home owners know that this is what you need to do first:

•1)       Request a modification on mortgage interest rates and lower the balance of you home. Make sure the reduced debt is forgiven and will not have to be repaid. Most 2^nd mortgages will be reduced by 90% of the balance owed if your home is underwater. Your lender will also be able to freeze your interest rate for 5 years around a 5%.

•2)       Sit down with a Real Estate Agent if your loan modification is unsuccessful. Most Agent's, will have experience with short selling homes. Visit your Agent's website first and ask about the Agent's marketing plan before you sign a listing agreement. If you owe $400,000 on your home and the sales in your area are $275,000, then you will receive a 1099 for $125,000 + Expenses from your Lender. Your Agent should be listing your home slightly under the current Bank Owned sales prices. Our Government has been generous enough to forgive outstanding mortgage debt from the short sale of your home. Not all home owners will be exempt from paying taxes on the loss of their home and some home owners in California can still have their 2^nd mortgage company file a deficiency judgment against you. Just google the "Mortgage debt Relief Act" to find out more information.

Keep in mind this is not the market to sell right now. This is the market to buy! The average monthly payment of a purchase right now is almost that of the local rent. There are tons of people loosing their homes right now and looking to rent a home for half the cost of their foreclosed home. If you are buying investment property and can wash the mortgage cost with the rent, then that is the reason to buy. I'm not just talking about buying one home. I'm talking about a real estate portfolio with at least 10 homes bought around $250,000 and having a renter pay for the expense and then selling them in a sellers market at $350,000 in 7-10 years at a gross profit of $1,000,000.00. "That's a retirement plan!"

"The best time for opportunity is during a recession or real estate crash."