How to Get Out of an Upside Down Car Loan with Negative Equity, upside down


How to Get Out of an Upside Down Car Loan With Negative Equity

Upside down mortgage

In the housing industry, it s called negative equity. In the automotive industry it s called being upside down. In both cases, it means the same thing: You owe more money on an asset than the asset itself is worth.

When you re upside down on a car loan, you can end up in big trouble because a car doesn t grow in value like a house often does. You can list a car as an asset on your balance sheet if you want, but in reality, it s not an asset or an investment. It s an expense.

If you re in this unfortunate position, you can t lower your payment by refinancing, and selling your property won t cover the whole loan. How did you get here, and what can you do?

Getting Upside Down on a Car Loan

To understand how to get out of trouble, you first need to understand how you got upside down on a car loan in the first place.

  • A car depreciates in value very quickly, especially in your first three years of owning it. When you buy a car with a low down payment or no down payment at all you immediately owe nearly the entire purchase price, but it s already worth less. For example, if you buy a $20,000 car and only put a thousand dollars down, you ll be upside down as soon as you drive the car off the lot. You owe $19,000, but the car is only worth $16,000.
  • It s easy to overpay if you don t do your research before buying a car. Your overpayment doesn t make the car worth any more in the fair market, so if you pay $24,000 for a car that s now worth $16,000 you re upside down and already facing a big problem.
  • It s not always your fault. When an unscrupulous car dealer takes advantage of you, you can end up owing more than you should.
  • When you add too many frivolous options to your car, you increase your final total, but not the value of the car. That s a recipe for being upside down even faster.
  • If you re already upside down on one car loan and you try to get a new loan, dealers will often roll the shortfall from the old car to the new car without even telling you.

Unless you re on high alert when buying a new or used car, it s easy to fall into these traps. In fact, it s almost certain that you re going to be upside down at some point. That s why many people don t even know when it happens to them. At first, it s not necessarily a problem.

When Being Upside Down Becomes a Problem

Being upside down on your car loan doesn t always require immediate attention. Sure, it s not good news, especially if it means you overpaid. But as long as you got a fair deal on your loan, and you make your payments on time, the expense of your loan and the value of your car eventually even out, usually in no more than five years. The imbalance might only be temporary.

The trouble comes when you can no longer comfortably afford your monthly car payment, whether it s due to unemployment or job loss, income reduction, or another major negative change in your overall financial situation. When you re upside down and can t cover your loan payment, you re in a tough financial place.

How to Get Out of an Upside Down Car Loan

The only real way to fix the problem of being upside down is by paying down the excess debt. You ll have to go through a few steps and make some sacrifices to manage the loan or raise the cash, but the process is worth your time. You can get out from under a payment you can no longer afford.

1. Move the Excess Car Debt to a Credit Line

Although many people would rail against using credit cards, moving the debt to a credit line might be the best option. If you re having trouble with a $600 monthly payment, moving to a more manageable rate on a $5,000 line can save you cash and buy you some time.

The key is to avoid more trouble. This plan only works if you can commit to the lower regular payments on a credit line. If you can, get a line with a low introductory APR, and pay as much as you can before the introductory period ends (i.e. 0% APR balance transfer credit cards). Consider using peer-to-peer lending networks like Lending Club or Prosper. A local credit union can also provide a personal loan at a reasonable rate.

If the credit line idea doesn t sit well with you, then you ll need to raise some cash. This means that you may need to sacrifice something else in order to cover the car payment. Selling major items like extra furniture or jewelry might help, or sell smaller items on eBay to raise money.

Don t count out the idea of selling the car, even though it won t cover your entire overage. If you owe $10,000 and you can sell the car for $7,500, the $2,500 will be much more manageable than paying your full loan. Keep in mind that your car will only continue to depreciate in value, so get as much out of the sale as you can.

When you need more income, the only answer is often to get a second job. It doesn t have to be a permanent arrangement, just a temporary fix until the car loan shortage is corrected. This situation might even be the push you need to start your own small business or find ways to make extra cash on the side.

Avoiding the Problem

Lets face it: Cars will always depreciate rapidly. As long as they have engines inside them, they re going to drop like a rock in price. Car dealers know it, and they almost always make more money when you finance. When you re ready for your next car, keep a few tips in mind so you can avoid being upside down on a car loan ever again.

The easiest way to avoid being upside down is to not have a loan at all. You might have to settle for an older car, but try to save enough cash to buy the vehicle without taking out a loan.

Someday, I hope to be in a position where I can save up enough money to buy a new car without it being any kind of strain on my finances. Wealthy people don t finance cars. They pay cash for them and drive them for a long time. Make it your goal to stop the cycle of going from one car payment to another. If you break that cycle, you ll be one step closer to achieving independent wealth.

Whether you re shopping for a new luxury vehicle or an old car with low mileage, take the time to save the way you would for a mortgage. Try to have at least 20% of the purchase price available in cash. This down payment will be your best defense against the horrendous depreciation that your new car will experience over the next two years.

3. Pay More Than the Specified Monthly Payment

If you re going to finance, try to get a five-year loan so your monthly payment will be small. Then, if you can, pay up to double the minimum payment. You ll pay off more of the principal earlier, which means you ll build up less interest. The faster you pay off the loan, the better.

4. Keep Up With Car Maintenance

Don t rack up mileage. Stay on schedule with oil changes and engine maintenance, and take care of the paint job with frequent car washes and cleanings. If the check engine light comes on, address it quickly so a bigger problem doesn t arise. Keep the interior clean. The better you treat the car, the higher the resale value will be. Make sure you can check off excellent condition when you look up the value.

Final Word

Being upside down on your car loan can be an extremely difficult and challenging prospect, but there is hope. By staying organized, disciplined, and employing some unique strategies, you can work your way out of this debt.

Are you upside down on your car, or have you ever been? How did you get in that position, and what did you do to get out and make things right? I d love to hear about your experiences and insights!


Government Help for an Upside Down Mortgage #home #mortgage #rates


#upside down mortgage

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Government Help for an Upside Down Mortgage

Government programs are available to help upside down mortgage holders.

A sustained housing-market slide since 2007 has turned the American Dream of home ownership upside down for a number of mortgage holders. These people may have bought their homes during the boom years of the early 2000s through 2005, but now in 2012, they may owe more than their homes are worth. Several government programs can help homeowners in this predicament by reducing principal amounts or allowing refinances to lower interest rates.

HAMP

HAMP, officially known as the Home Affordable Modification Program, is intended to make a homeowner’s mortgage debt more affordable in the long-term. Federal officials designed HAMP as a way to rescue mortgage holders who lose their jobs and can’t make monthly house payments at current levels. HAMP can help, but you must show you can afford the modified mortgage. Plus, you must have obtained your mortgage by Jan. 1, 2009, and your mortgage debt must be no more than $729,750.

Modified HAMP

The federal government offers a modified HAMP program that helps people who have jobs but struggle to pay their upside down mortgages. The modified HAMP aims to increase the number of homeowners eligible for help by relaxing the debit-to-income ratio requirement to 31 percent or lower. Also welcomed into the modified HAMP are homeowners who defaulted on a previous HAMP permanent modification, as well as homeowners who defaulted on payments in a HAMP trial period plan. Similar to the original HAMP program, you must have obtained your mortgage by Jan. 1, 2009, and your mortgage debt must be no more than $729,750.

HARP

The Home Affordable Refinance Program, or HARP, is a component of the federal Making Home Affordable initiative. It helps homeowners who are struggling but current on payments refinance their mortgages. HARP can help upside down mortgage holders, provided they owe more than 80 percent of their home’s value. HARP eligibility also requires that Freddie Mac or Fannie Mae bought the mortgages on or before May 31, 2009.

FHA Short Refinance

The Making Home Affordable initiative also authorizes the Federal Housing Administration to assist holders of upside down mortgages through refinancings. It authorizes FHA lenders to forgive at least 10 percent of the borrower’s original mortgage amount and provides the homeowner the opportunity to qualify for a new FHA-insured mortgage. To qualify, the borrower’s loan-to-value ratio can’t exceed 97.75 percent.

Mortgage Foreclosure Settlement

A national legal settlement engineered by 49 state attorneys general and the Justice Department can help certain upside down mortgage owners with refinancing to lower interest rates. Loan servicers at Bank of America, Wells Fargo, Citi and J.P. Morgan Chase must provide up to $3 billion in refinancing relief to borrowers who are upside down, according to the settlement, which was negotiated in February 2012.

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  • Upside Down Mortgage Help for Homeowners #suntrust #mortgage


    #upside down mortgage

    #

    Upside Down Mortgage Help for Homeowners

    As of August 2010, when this article was published, approximately 11 million homeowners were upside down in their mortgage loans. Much of this results from the housing crisis that came to a head in 2008. In the wake of that financial crisis, property values began dropping all across the country. In places like California, Arizona and Florida, they dropped considerably.

    This leaves many homeowners scratching their heads over what to do next. What can you do about an upside down mortgage loan? Can you sell or refinance the home when you re in this boat? Is there any help for upside down homeowners? These are the questions we will address below.

    A Resource for Upside Down Homeowners

    As the number of upside down homeowners has grown, so too have the number of programs available to them. But this creates a dilemma. With so many program updates and announcements, the average consumer is left feeling overwhelmed and confused. There is help for homeowners with upside down mortgage loans it s just hard to find the right path. Our goal is to compile information and resources related to upside down mortgage loans. We will update this page as needed, to ensure it stays current.

    The Upside Down Mortgage, Defined

    What is an upside down mortgage loan? Here s a simple definition. If you owe more on your mortgage than your home is currently worth, you are upside down in the loan.

    Here s an example. If my home is worth $185,000 in the current market, but I owe $195,000 on my mortgage loan, I am upside down. My loan balance exceeds the value of my property. This is also referred to as being underwater in the loan. The two terms are interchangeable.

    Why Is This a Problem?

    Upside down homeowners have a hard time selling or refinancing their homes. If you sell the house for less than what you owe to the lender, you ll probably have to pay the difference out of pocket. On the refinancing side, the lack of equity makes it hard to qualify for a mortgage refinance loan. Upside mortgage loans can create a situation where the homeowner is stuck can t sell the house, can t refinance the loan.

    When homeowners plan to stay in the home for a long time, being upside down is less of a concern. They can simply stay put, continue making their mortgage payments, and hope that their property values rise again in the future. But for those who want to sell or refinance their homes, an upside down mortgage will put up a financial roadblock.

    Refinancing Options Through the FHA

    Underwater homeowners are often unable to refinance their homes. They lack the equity that most lenders require. But there is help for upside down homeowners who want to refinance.

    In May 2010, the Department of Housing and Urban Development (HUD) announced changes to the FHA s loan-backing program that would make refinancing possible for underwater homeowners. This new program will be rolled out in the fall of 2010. To qualify, homeowners must (1) have a loan that is not currently insured by the FHA, (2) be current on their mortgage payments, and (3) be upside down in their mortgage loan. TARP funds are being used to give incentives to lenders, encouraging them to participate in the program.

    This program is being referred to as the FHA short refi for underwater homeowners, and you can learn more about it through the links below:

    Other Programs to Help Homeowners

    If your mortgage loan is currently owned or guaranteed by Freddie Mac or Fannie Mae, you may have additional options for underwater refinancing. This would be through the federal government s Making Home Affordable program. Here again, you need to be current on your mortgage payments to pursue this option.

    You can learn more through the links below:

    Upside Down Mortgages in the News

    It is our goal to make this resource page as useful as possible. So we will be tracking the various programs and topics mentioned above. Here is some recent (2010) news regarding upside down mortgages and help for homeowners.

    Post navigation


    Upside Down Mortgage Help for Homeowners #td #mortgage #calculator


    #upside down mortgage

    #

    Upside Down Mortgage Help for Homeowners

    As of August 2010, when this article was published, approximately 11 million homeowners were upside down in their mortgage loans. Much of this results from the housing crisis that came to a head in 2008. In the wake of that financial crisis, property values began dropping all across the country. In places like California, Arizona and Florida, they dropped considerably.

    This leaves many homeowners scratching their heads over what to do next. What can you do about an upside down mortgage loan? Can you sell or refinance the home when you re in this boat? Is there any help for upside down homeowners? These are the questions we will address below.

    A Resource for Upside Down Homeowners

    As the number of upside down homeowners has grown, so too have the number of programs available to them. But this creates a dilemma. With so many program updates and announcements, the average consumer is left feeling overwhelmed and confused. There is help for homeowners with upside down mortgage loans it s just hard to find the right path. Our goal is to compile information and resources related to upside down mortgage loans. We will update this page as needed, to ensure it stays current.

    The Upside Down Mortgage, Defined

    What is an upside down mortgage loan? Here s a simple definition. If you owe more on your mortgage than your home is currently worth, you are upside down in the loan.

    Here s an example. If my home is worth $185,000 in the current market, but I owe $195,000 on my mortgage loan, I am upside down. My loan balance exceeds the value of my property. This is also referred to as being underwater in the loan. The two terms are interchangeable.

    Why Is This a Problem?

    Upside down homeowners have a hard time selling or refinancing their homes. If you sell the house for less than what you owe to the lender, you ll probably have to pay the difference out of pocket. On the refinancing side, the lack of equity makes it hard to qualify for a mortgage refinance loan. Upside mortgage loans can create a situation where the homeowner is stuck can t sell the house, can t refinance the loan.

    When homeowners plan to stay in the home for a long time, being upside down is less of a concern. They can simply stay put, continue making their mortgage payments, and hope that their property values rise again in the future. But for those who want to sell or refinance their homes, an upside down mortgage will put up a financial roadblock.

    Refinancing Options Through the FHA

    Underwater homeowners are often unable to refinance their homes. They lack the equity that most lenders require. But there is help for upside down homeowners who want to refinance.

    In May 2010, the Department of Housing and Urban Development (HUD) announced changes to the FHA s loan-backing program that would make refinancing possible for underwater homeowners. This new program will be rolled out in the fall of 2010. To qualify, homeowners must (1) have a loan that is not currently insured by the FHA, (2) be current on their mortgage payments, and (3) be upside down in their mortgage loan. TARP funds are being used to give incentives to lenders, encouraging them to participate in the program.

    This program is being referred to as the FHA short refi for underwater homeowners, and you can learn more about it through the links below:

    Other Programs to Help Homeowners

    If your mortgage loan is currently owned or guaranteed by Freddie Mac or Fannie Mae, you may have additional options for underwater refinancing. This would be through the federal government s Making Home Affordable program. Here again, you need to be current on your mortgage payments to pursue this option.

    You can learn more through the links below:

    Upside Down Mortgages in the News

    It is our goal to make this resource page as useful as possible. So we will be tracking the various programs and topics mentioned above. Here is some recent (2010) news regarding upside down mortgages and help for homeowners.

    Post navigation


    Upside Down Mortgage – Upside Down Mortgage (home) #biweekly #mortgage #calculator


    #upside down mortgage

    #

    Welcome to Upside Down Mortgage!

    Are you upside down on your mortgage? Do you owe the bank more than your house is worth? Welcome to the most comprehensive help resource website on upside down mortgage problems. This problem is not new, many people found themselves in upside down mortgage situations each day.

    If you are in an upside down mortgage situation, we can help you. There are many resources and help out there to get you out of being upside down on your mortgage. Our company offers solutions to homeowners in upside down mortgage situations.

    Behind On Your Mortgage Payments? Contact Us for a Free Consultation!

    Free consultation on upside down mortgage

    We offer risk free, free and confidential consultation for homeowners with an upside down mortgage. During this free consultation on upside down mortgage, our experts will show you ways to remedy the upside down mortgage situation. If you have an upside down mortgage, the chances are that we have solutions for you. Click here to use our free consultation form or find out how much how home is worth by clicking on the link below.

    Get educated on options available for homeowners with upside down mortgage

    Although, our company can help all homeowners with upside down mortgage and we will walk the homeowner through every step of the solutions available to them, we are a firm believer of educating homeowners as much as possible. Some homeowners like to read resources online so we have put a lot of valuable information on upside down mortgage on our Upside Down Mortgage website for educational purposes.

    If you have questions or comments, please use our contact form to contact us. You can use the link below to bookmark this page.


    Got An Upside Down Mortgage? Would You Foreclose and Walk Away From Your Mortgage? #second


    #upside down mortgage

    #

    Got An Upside Down Mortgage? Would You Foreclose and Walk Away From Your Mortgage?

    by The Smarter Wallet on March 7, 2009

    Got An Upside Down Mortgage?

    It s hard to believe that it was a mere couple of years ago when homes were selling like hotcakes with multiple bids. Back then, I was wondering when we d be facing the end of the real estate bubble. Well, many of us are now living the American Nightmare: thanks to the real estate bust and subprime mortgage mess, we face foreclosures and worry about our unemployment checks running out. while we try to manage job loss and avoid debt collectors.

    These days, we re now talking about how people are facing the prospects of walking away from their upside down mortgage, or a mortgage that keeps them financially underwater. Here s what s amazing: reports are stating that 20% of homeowners (or 1 in 5 families) now owe more than what their properties are worth.

    What s frustrating to me is that this was something many of us could have probably seen coming. Many of us probably anticipated that the market would eventually receive its comeuppance sometime in the future, given how crazy prices were back then, except that we didn t do anything about it. At least I didn t. I still remember a moment when I was tempted to call out the peak of the real estate (and stock) market (I was actually spot on, in hindsight), but still remained fully invested in the stock market. Oh well we can only wish we can turn back time and do things over.

    Now believe it or not, when a basic cost-benefit analysis is done, it makes more sense for people to actually walk away from their devalued homes. But for those who are now wallowing in negative amortization and upside down mortgages the surprising fact is that they re actually sticking it out. There are people have chosen to address their debt and loan problems by working to consolidate debt or by signing up for loan modification services instead of walking away from their obligations. As behavioral economics would have it, most people don t make the rational decision of moving on and cutting their losses. Now why is that?

    Why You Probably Won t Foreclose and Walk Away From Your Mortgage

    Why is it that most people will prefer to stay put and will refuse to walk away even if it s in their best financial interest to do so?

    1. There s this thing called the endowment effect , where homeowners have the tendency to value their homes above their market price. Because people don t want to admit they ve actually lost money, they d rather stick things out and avoid selling at a loss.

    2. Homeowners place more importance on immediate outcomes than they do long-term effects. Now what does this mean? There s a visible cost to walking away that people anticipate right away, while they don t see very much material benefit to actually abandoning their homes. The impact of walking away (there s effort, time and money involved) has an immediate negative effect whereas the positive impact isn t easily felt until possibly later. Hence, people will wrongfully assume that there s a heavier cost to walking away than it is to staying put.

    Check out this interesting article on this difficult dilemma. What would you do if you re faced with an upside down mortgage?

    For those who d like help with an upside down mortgage, you may want to consider modifying your loans or seeking help with debt management. Some possible services include those provided by:

    • Debt Consolidation Care for your debt consolidation needs
    • Home Foreclosure Fighter for loan modification services
    • Lower My Bills for home refinancing, debt consolidation and debt management
    • for mortgage refinancing and personal loan needs

    But always do your due diligence before signing up with any service.

    If you enjoyed this post, you can get free regular updates through our RSS Feed. or you can have our latest posts delivered to your email inbox by supplying your address here. Your address will only be used for this purpose, and you can unsubscribe anytime. Share This: Save to del.icio.us Digg This! Stumble It! Submit to Reddit Email This

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    Upside Down Mortgage – Upside Down Mortgage (home) #equity #mortgage


    #upside down mortgage

    #

    Welcome to Upside Down Mortgage!

    Are you upside down on your mortgage? Do you owe the bank more than your house is worth? Welcome to the most comprehensive help resource website on upside down mortgage problems. This problem is not new, many people found themselves in upside down mortgage situations each day.

    If you are in an upside down mortgage situation, we can help you. There are many resources and help out there to get you out of being upside down on your mortgage. Our company offers solutions to homeowners in upside down mortgage situations.

    Behind On Your Mortgage Payments? Contact Us for a Free Consultation!

    Free consultation on upside down mortgage

    We offer risk free, free and confidential consultation for homeowners with an upside down mortgage. During this free consultation on upside down mortgage, our experts will show you ways to remedy the upside down mortgage situation. If you have an upside down mortgage, the chances are that we have solutions for you. Click here to use our free consultation form or find out how much how home is worth by clicking on the link below.

    Get educated on options available for homeowners with upside down mortgage

    Although, our company can help all homeowners with upside down mortgage and we will walk the homeowner through every step of the solutions available to them, we are a firm believer of educating homeowners as much as possible. Some homeowners like to read resources online so we have put a lot of valuable information on upside down mortgage on our Upside Down Mortgage website for educational purposes.

    If you have questions or comments, please use our contact form to contact us. You can use the link below to bookmark this page.


    Upside Down on Mortgage #cenlar #mortgage


    #upside down mortgage

    #

    Advice on actions to take if you are upside down on your mortgag

    • Consider a short sale or deed in lieu of foreclosure.
    • Review the FHA Short Refinance program.

    You are not alone in this situation, may people are finding themselves in an upside down situation. First of all, if you can afford your payments, then stay on course. Hopefully, the market should turn around and you should be in a better position to maybe start thinking of a refinance. If you are thinking about a refinance, I do not think that it will be a viable proposition given the fact that the new loan would have to finance 137% of your value. While loans of up to 125% LTV are possible, they are very rare and will turn out prohibitive, cost wise.

    If you have having difficulty keeping up with the payments, you may want to consider a short-sale, in which your mortgage company would accept less than the full balance of the mortgage to settle the debt. You would then sell the home and pay the mortgage company whatever you received, and the mortgage company would forgive the remaining balance. If you are interested in a short sale, the first step is to contact your mortgage lender to find out if this is an option. You can only proceed with a short sale with the consent of the mortgage holder, so it is imperative that you communicate with the lender.

    For more information about short sales and deeds in lieu of foreclosure, see the Bills.com resource Deed In Lieu Of Foreclosure vs. Short Sale. Generally speaking, a short sale is a much less painful process than allowing the property to fall into foreclosure, especially from a credit-score perspective.

    If your lender will not allow you to conduct a short sale, you may also want to consider asking the lender about a deed in lieu of foreclosure agreement, which involves surrendering the home to the lender to prevent foreclosure. I strongly encourage you to speak with a qualified attorney before making any decisions regarding your home, as your state s laws could significantly affect how you decide to resolve this problem.

    I hope that the information I have provided helps you Find. Learn. Save.

    My husband and I purchased a new home four years ago for 389,000 in a brand new development. Up until about a year ago, building had come to a screeching halt but this past year. houses have been going up a little at a time. My husband just found out that our exact same floor plan, with many upgrades that we don’t have – has just sold for $300,000. After calculating the difference in upgrades we are $100,000 upside down in our mortgage. My husband will be retiring in 7 years and when he does we would like to move someplace warm and less expensive. I know lots of other people are having the same issue..although we love our home it feels like a big albatross around our neck. Is there anything we can do that won’t impact our credit?

    The only way you can sell your home without a negative impact on your credit score is to sell it and pay any deficiency balance. All other tactics foreclosure, short sale, deed-in-lieu-of-foreclosure result in a negative impact on the borrower’s credit score.


    Upside Down Mortgage Help for Homeowners #amortization #chart


    #upside down mortgage

    #

    Upside Down Mortgage Help for Homeowners

    As of August 2010, when this article was published, approximately 11 million homeowners were upside down in their mortgage loans. Much of this results from the housing crisis that came to a head in 2008. In the wake of that financial crisis, property values began dropping all across the country. In places like California, Arizona and Florida, they dropped considerably.

    This leaves many homeowners scratching their heads over what to do next. What can you do about an upside down mortgage loan? Can you sell or refinance the home when you re in this boat? Is there any help for upside down homeowners? These are the questions we will address below.

    A Resource for Upside Down Homeowners

    As the number of upside down homeowners has grown, so too have the number of programs available to them. But this creates a dilemma. With so many program updates and announcements, the average consumer is left feeling overwhelmed and confused. There is help for homeowners with upside down mortgage loans it s just hard to find the right path. Our goal is to compile information and resources related to upside down mortgage loans. We will update this page as needed, to ensure it stays current.

    The Upside Down Mortgage, Defined

    What is an upside down mortgage loan? Here s a simple definition. If you owe more on your mortgage than your home is currently worth, you are upside down in the loan.

    Here s an example. If my home is worth $185,000 in the current market, but I owe $195,000 on my mortgage loan, I am upside down. My loan balance exceeds the value of my property. This is also referred to as being underwater in the loan. The two terms are interchangeable.

    Why Is This a Problem?

    Upside down homeowners have a hard time selling or refinancing their homes. If you sell the house for less than what you owe to the lender, you ll probably have to pay the difference out of pocket. On the refinancing side, the lack of equity makes it hard to qualify for a mortgage refinance loan. Upside mortgage loans can create a situation where the homeowner is stuck can t sell the house, can t refinance the loan.

    When homeowners plan to stay in the home for a long time, being upside down is less of a concern. They can simply stay put, continue making their mortgage payments, and hope that their property values rise again in the future. But for those who want to sell or refinance their homes, an upside down mortgage will put up a financial roadblock.

    Refinancing Options Through the FHA

    Underwater homeowners are often unable to refinance their homes. They lack the equity that most lenders require. But there is help for upside down homeowners who want to refinance.

    In May 2010, the Department of Housing and Urban Development (HUD) announced changes to the FHA s loan-backing program that would make refinancing possible for underwater homeowners. This new program will be rolled out in the fall of 2010. To qualify, homeowners must (1) have a loan that is not currently insured by the FHA, (2) be current on their mortgage payments, and (3) be upside down in their mortgage loan. TARP funds are being used to give incentives to lenders, encouraging them to participate in the program.

    This program is being referred to as the FHA short refi for underwater homeowners, and you can learn more about it through the links below:

    Other Programs to Help Homeowners

    If your mortgage loan is currently owned or guaranteed by Freddie Mac or Fannie Mae, you may have additional options for underwater refinancing. This would be through the federal government s Making Home Affordable program. Here again, you need to be current on your mortgage payments to pursue this option.

    You can learn more through the links below:

    Upside Down Mortgages in the News

    It is our goal to make this resource page as useful as possible. So we will be tracking the various programs and topics mentioned above. Here is some recent (2010) news regarding upside down mortgages and help for homeowners.

    Post navigation


    Upside Down Mortgage – Upside Down Mortgage (home) #mortgage #payoff #calculator


    #upside down mortgage

    #

    Welcome to Upside Down Mortgage!

    Are you upside down on your mortgage? Do you owe the bank more than your house is worth? Welcome to the most comprehensive help resource website on upside down mortgage problems. This problem is not new, many people found themselves in upside down mortgage situations each day.

    If you are in an upside down mortgage situation, we can help you. There are many resources and help out there to get you out of being upside down on your mortgage. Our company offers solutions to homeowners in upside down mortgage situations.

    Behind On Your Mortgage Payments? Contact Us for a Free Consultation!

    Free consultation on upside down mortgage

    We offer risk free, free and confidential consultation for homeowners with an upside down mortgage. During this free consultation on upside down mortgage, our experts will show you ways to remedy the upside down mortgage situation. If you have an upside down mortgage, the chances are that we have solutions for you. Click here to use our free consultation form or find out how much how home is worth by clicking on the link below.

    Get educated on options available for homeowners with upside down mortgage

    Although, our company can help all homeowners with upside down mortgage and we will walk the homeowner through every step of the solutions available to them, we are a firm believer of educating homeowners as much as possible. Some homeowners like to read resources online so we have put a lot of valuable information on upside down mortgage on our Upside Down Mortgage website for educational purposes.

    If you have questions or comments, please use our contact form to contact us. You can use the link below to bookmark this page.