“Our adjustable rate changed to 9.45% and since the home prices in our entire neighborhood had gone down we were sure we would loose
our house when we were told we had no options by our local bank. You saved our home – Thanks!
Arlene and Bill G. – Crete, NE
“The
process was painless”
John S. – Petoskey, MI
“I was told that I couldn’t qualify for a loan because I had am on a fixed
income. Thanks for helping me out (P.S. – my old loan officer should be arrested!)
Seymour G. – Kersey, PA
“You were
the first company that we called. I didn’t realize what a miracle you pulled off until I started talked to friends in my neighborhood
who were on the brink of foreclosure. I gave your website out – I hope you can help them.”
Deborah C. – Norwich, NY
“Great referral – Brissa was able to negotiate with our 2nd mortgage company to allow us to get the rate on our 1st mortgage down to 6.5% - We saved about $170 per month. You guys are awesome!”
John and Beth C. – Hibbing, MN
You Have Options.
Call Us Today!
1-866-928-0777
Our Program
Our program is specially designed for those clients who currently have a 1st and 2nd mortgage where the total of the two is more than the home’s value – or in other words, you are upside down and have negative equity. Typically, with a 1st and 2nd mortgage that equals the full value of the home (referred to as an 80/20 because the first mortgage is 80% of the value and the second mortgage is 20% of the value, equaling 100% of the value), the 1st mortgage is an adjustable rate mortgage while the 2nd mortgage is a fixed rate mortgage.
The best scenario that we can hope for is that we find that the appraised value is higher than we anticipated and we can combine BOTH of the mortgages together into one low, fixed rate mortgage– we will ALWAYS try to achieve this goal. However, with the way that property values have been declining over the past year we are finding that this is typically not achievable. Our next, best goal is to stabilize the situation by refinancing the 1st mortgage ONLY into a low, fixed rate mortgage.
If your 1st mortgage is currently a fixed rate, this method only makes sense for you if your existing interest rate is higher than the current market rate.
Example:
Our program is specially designed for those clients who currently have a 1st and 2nd mortgage where the total of the two is more than the home’s value – or in other words, you are upside down and have negative equity. Typically, with a 1st and 2nd mortgage that equals the full value of the home (referred to as an 80/20 because the first mortgage is 80% of the value and the second mortgage is 20% of the value, equaling 100% of the value), the 1st mortgage is an adjustable rate mortgage while the 2nd mortgage is a fixed rate mortgage.
The best scenario that we can hope for is that we find that the appraised value is higher than we anticipated and we can combine BOTH of the mortgages together into one low, fixed rate mortgage– we will ALWAYS try to achieve this goal. However, with the way that property values have been declining over the past year we are finding that this is typically not achievable. Our next, best goal is to stabilize the situation by refinancing the 1st mortgage ONLY into a low, fixed rate mortgage.
If your 1st mortgage is currently a fixed rate, this method only makes sense for you if your existing interest rate is higher than the current market rate.
Example:
An individual purchased their home in 2006 for $100,000. Thier
existing
motrgages are:
1st Mortgage: $ 80,000 ( 80% of the homes value)
2nd Mortgage: $ 20,000 ( 20% of the homes value)
Total Mortgages: $100,000 (100% of the homes value)
Because of declining property values, their home currently appraises
at $92,000. They now owe approximately
$100,000 on a property that is
worth $92,000 – they are considered Upside Down in
Equity. Since
thier 1st mortgage is an adjustable rate mortgage that is about to be
re-set to a much higher interest rate, we can refinance the first mortgage
in the following manner:
New 1st Mortgage: $ 82,700 ( 89.9% of the homes value)
(assuming approx. $2,700 in costs)
Existing 2nd Mortgage: $ 20,000 ( 21.7% of the homes value)
New Total Mortgages: $102,700 (111.6% of the homes value)
How can we refinance a property that is Upside Down with Negative Equity when everyone else has told you that it can’t be done? It is very simple. We are utilizing a little known provision of the FHA Home Loan Guidelines that allows us to refinance the 1st mortgage up to 95% of the new value of the home even if there is an outstanding 2nd mortgage.
Many people wonder what an FHA Home Loan is. The Federal Housing Administration, generally known as “FHA”, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. This FHA mortgage insurance provides lenders with protection against losses as the result of homeowners defaulting or their mortgage loans. The lenders bear less risk because FHA will pay a claim to the lender in the event of a homeowner’s default. Because of this insurance against losses, lenders are able to provide “riskier” loans than they would typically offer.
FHA loans allow for some damaged credit and you can apply for an FHA loan 2 Years after being discharged from a Chapter 7 Bankruptcy, assuming you have re-established your credit. Unfortunately, many homeowners believe they would not qualify to refinance their existing home loan because they were recently late on their consumer bills like credit cards or car loan payments. In most cases the credit scores for these homeowners have plummeted below the accepted threshold that conventional mortgage lenders require. Our FHA loans allow for credit scores as low as 580 (in some instances as low as 550) assuming there are compensating factors.
You Have Options.
Call Us Today!
Call Us Now: 1-866-928-0777
UpsideDown8020mortgage.com 1-866-928-0777 info@UpsideDown8020mortgage.com
