Help! I’m Upside Down in my Mortgage
Are you currently upside down in your mortgage? Do you owe more on your home than it is currently worth? Is there any point to selling? Do you have to hang onto the home or is there something you can do to lower your mortgage payment since you’re now paying more for a home than it’s worth?
Although in many places across the country the housing market has certainly turned and many of these homeowners are no longer underwater, there are still some out there that bought during the peak of the market and still find themselves with negative equity. There are several programs designed specifically for homeowners that are underwater or upside down in their mortgage. Each situation is unique so this is just a small snapshot of the programs out there. Call me for more details on your specific situation and how we can work with your lender.
HARP – the Home Affordable Refinance Program gives lenders financial payouts when they refinance the mortgage loans of homeowners that are upside down or have negative equity. Although not all lenders participate in this program, finding a mortgage broker that can deal with lenders directly will help make the process much smoother. Homeowners must meet certain requirements to participate in this program such as not having missed mortgage payment in the last 12 months and the loan must be guaranteed by Freddie Mac or Fannie Mae.
HAMP – the Home Affordable Modification Program helps the homeowner refinance to make their mortgage debt more affordable long-term. This is perfect for homeowners that it may be have lost their job or have a lowered income due to the economy. There’s also a modified HAMP which helps people by lowering the debt to income ratio requirement to 31% or lower. Many times this program works when all others have failed. There are many mortgage modification variations as well.
FHA Short Refinance - this work for borrowers who are not paying off alone owned or guaranteed by the US Department of Veteran Affairs, the FHA, the Department of Agriculture, Freddie Mac or Fannie Mae. This is not just a refinance but lenders will make new balances no more than 97.75% of the appraised value of the home. This is a perfect program for homeowners looking to sell their homes in the near future. It offers a lower mortgage payment and is designed so that homeowners won’t have to take a loss when selling.
For more information on these programs or specifics on your current situation call my office today. I would be happy to discuss the program or others that might fit your situation best.
Your Mortgage Specialist
Whether you are applying for a mortgage, refinancing your current home, want to learn about the mortgage process or need to find out information about your credit history, our website gives you all the information you need to make an informed decision about your financial future. Contact us today for a personal touch to your mortgage and financial application and where to get a mortgage.