Is there an Upside to an upside down mortgage?
Is there an Upside to an
upside down mortgage? Yes. The Mortgage Relief Program via Homeowners Relief
Options Inc. Our Program Is Nationwide.
We talk to countless
people who contact us each week. Each one has a situation. Some are unique and
some are not so unique. However there is a common problem that they all have.
The Mortgage Payment.
There are those who can
no longer afford to pay their current mortgage and there are those who do not
want to pay the mortgage on their current home for various reasons, mostly
financial. Sure we can get into the argument that perhaps they should not have
entered a mortgage agreement and bought the house in the first place.
But the problem exists.
The first thing every one does is to try to sell the house of course and they
all run into the same problem: they owe more on the mortgage than the current
value of the house. Sure they can still contact a Realtor and place the home on
the market but the homeowner will have to come up with the difference in many
cases thousands of dollars in addition to closing costs. If you're upside down
or underwater by just 10 percent that still translates anywhere between $10k to
40k for many homeowners. Who has that kind of expendable cash on reserve for
this? Who wants to take out their savings, retirement or 401k to sell their
house?
Okay. A traditional sale
obviously is not going to cut it. Enter the "short sale". The most
common solution that is offered by your local friendly Realtor. Basically this
is an option that has to get approved first of all by your lender, bank or
servicer of your mortgage loan. You must get through that hurdle first. While
you are waiting for approval which can take anywhere between 3 to 12 months on
average you still must pay the mortgage, insurance, taxes and maintenance.
If you're still in the
home that might not be to bad, you're just waiting for yes or no from the
lender...unless you have to move out for personal or financial reasons right
away and that 3 to 12 months of mortgage payments can be financially taxing
especially when you have to pay rent or lodging somewhere else aka double
payments. This is especially true for those who have an unoccupied home. Living
somewhere else and paying the mortgage on the old home.
What happens if you
don't get approved or the buyer can no longer close or buy? Those 3 to 12
months payments on an empty house can be financially taxing. This happens a lot
with short sales. Potential buyers get discouraged by the long wait and process
and often find another home.
What about the
difference between what you owe and what the lender will short sale for? Known
as the deficiency amount. Some lenders can and will still come after you for
that amount later. Sure you might be in a state that does not allow the lender
to come after you for the deficiency amount. That's would be great if that's
the case. Some lenders will even allow as part of the short sale agreement to
not come after you for the deficient amount. But of course all this will have
to be negotiated skillfully.
But deficiency or not, what
happens to your credit because of the short sale? Many homeowners are unaware
that the severe credit drop because of a short sale is about the same as a
foreclosure. Sure it won't be listed as foreclosure on your credit report but
the score will be nearly the same. (See the accompanying graphic). Realtors are
supposed to give full disclosure and this is one of the things that most often
is not disclosed. After all Realtors make a commission and get paid off of the
short sale of your home that's why they recommend it and push for a short sale
option and homeowners are generally not allowed to profit or make any money
from the sale of the home.
I have nothing against
Realtors. Many are my friends and are in my network. I worked with many of them
on occasion and have 2 family members that are Realtors as well. Some homeowners
will want to go for this "nuclear option" and short sale and it may
be the best option for them. An experienced, qualified
and capable Realtor will get it accomplished in most cases.
 |
A
similar credit drop for short sale as a foreclosure!
|
Okay. Rent out the home.
Aka land lording. This is an option if you don't mind dealing with tenants who
will call you regularly for the simplest things to major repairs. All coming
out of your pocket or bank account. Not to mention you still have to pay the
taxes, insurance and general maintenance on the property. Also you most likely
have to still pay a portion of the mortgage if market rents in your area are
below your monthly mortgage amount. Basically your tenant will be paying part
of the mortgage but you will pay the rest out of your pocket including
maintenance, repairs, cleaning, evictions and court costs.
Hire a property manager.
All of the above included plus the property managers monthly fee to collect
your rent from your tenant and keep tabs on the property. An extra cost to you.
Now lets put things in
perspective. We are not talking about those who can wait a few years or more
for the market to hopefully improve so they can sell to the point where at
least they break even. They don't mind shelling out a thousand or more every
month to a negative equity situation with no return on their money.
No. Were talking about
people who MUST move now. Who do not want to make another mortgage payment or
cannot make another mortgage payment. The house is a liability instead of an
asset. Draining whatever finances you have left every month.
No. We're talking about
the doctor who told us the money and employment was out of state and he had to
go now. His home was upside down or underwater and couldn't sell now and he
couldn't sit and wait. He turned his mortgage and home over to Homeowners
Relief Options Inc. and moved on.
No. We're talking about
the head of the house hold who said there was a job waiting in the nearby city
for him and his house can't sell now but he had to go now. We took over...he
moved on.
No. We're talking about
the woman or man whose ex spouse left them the house and mortgage in a divorce
decree but could not afford it single handedly. We took over...they moved on.
No. We're talking about
the couple who tried to rent out to tenants only to get into a financial hole
because of evictions, repairs, new carpet, paint and missed monthly payments
among other things. We took over...they moved
on.
We could go on with more
examples of those we have helped reduce their stress and financial
burden.
If you need to get out
from under your current mortgage payment and house NOW and you can't sell your
house because you owe more than what your house is currently worth or you just need to leave now! Call us,
Homeowners Relief Options Inc. We'll take over your mortgage payments and
house. If you currently occupy your home just tell us when you will vacate and
we'll start the process and finalize around that date. If its unoccupied we'll
start the process now.
It does not matter how
much you are upside down or underwater on your mortgage or how much you owe, we'll take over the mortgage payments regardless.
Here is a
recap on the process and steps. Call us at (623) 738-4398 or email
to Info@HomeownersReliefProgram.com at anytime for details, questions
or concerns.
Step 1. Property
Fact Form. This will allow us to get an idea of your mortgage situation and
property. We will then contact you within 72 hours to discuss your situation
and answer all your questions. This is not a mortgage or refinance application.
We do not sell, rent or exchange your information in any way or to any third
parties whatsoever. Click here
to ---> download the Property Fact Form or download the one in the email sent to you. <--- Or go to our website at http://www.HomeownersReliefOptions.com and go to the contact page and download from there.
Step 2. If you've decided to move forward with the process after our
initial consultation we will then request photo's of the property and
mortgage documents for further verification from you including an authorization (LPOA) to speak
with your lender/mortgage company in order to verify with them your
mortgage documents, payments, interest rate, etc.
Step 3. After the verification we'll then send you an agreement/contract
to sign with a date of approximate closing and takeover of the property.
Step 4. Once we've satisfactorily verified the mortgage with your
lender/ mortgage company and you've signed the agreement with us, we will then
provide to you the final closing documents for you to sign and get notarized. We Will pay ALL closing costs. Your only cost is the $399 document preparation & recording fees. That's It! We'll then have the appropriate document(s) recorded at your local county
recorders office. At this point we take over and you move on.
Homeowners Relief Options. We take over...You move on. Our program is Nationwide.
Best regards,
Property Acquisition Manager
Homeowners Relief Options
4926 E McDowell Rd., Suite 104
Phoenix, AZ 85008
(623) 738-4398
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