Mortgage Advocates

Can't Refinance, Home Mortgage Upside Down? Need Help With Mortgage Payments

 By Dan North

Did your lender say: Not Qualified, Can't Refinance, Home Mortgage Upside Down, Short Sell or Foreclose? Not options if you want your home or made payments on time to protect your credit. Don't wait for your lender to provide help with mortgage payments, you are going to have to get it elsewhere. There are mortgage assistance programs that will provide help.

If Your Home Mortgage Is Upside Down You Can Modify Your Loan Into A Lower Monthly Mortgage Payment Without Refinancing

Factually if your home mortgage is upside down actually works to your advantage. You can qualify for help with mortgage payments even if your lender said, "Not qualified because your payments are current." Yes, you can modify your home loan into a lower mortgage payment with out refinancing.

Government Mortgage Rate Reduction Programs For Upside Down Mortgages

Oct 2008, while the government was bailing out banks and releasing TARP Funds, the Secretary of the Treasury, Timothy Geithner, announced 70% of US home owners qualify for help with mortgage payments. Not just extreme financial distress such as those whose home mortgage is upside down and behind on payments but also those who are current on mortgage payments. Lenders actually receive payment from the government for each mortgage modification they give to borrowers but they get paid just as much for a small reduction as a large reduction. So there is no incentive for them to give you as much of a reduction as you qualify for. You do have to ask for the full amount and negotiate to get that.

Government mortgage assistance programs are intended to stimulate economic recovery by injecting money back into the economy. The intention is that if you cut your mortgage in half, you will take that extra money and inject it back into the economy. The banks don't necessarily agree. You have to figure out on your own what reduction you qualify for, then convince your lender to give it to you.

Don't Believe Not Qualified, Can't Refinance, Mortgage Upside Down, Short Sell or Foreclose

You can totally disregard what your lender told you verbally. Submit your loan modification package in writing to be taken seriously and get a real answer. Find out what terms you qualify for before you submit. Then submit to modify loan into terms you qualify for and your lender is authorized to approve. Request lowering your mortgage interest rate by 2-4%, but don't request a 2% reduction if you qualify for 4%. The point is, submit the modification you know you qualify for and your lender can approve. Negotiate from a position of strength. 

Typically  you can modify your loan into a lower monthly mortgage payment for 5-10 years and a 2-4% interest rate reduction. Your mortgage converts to interest only during this period, no principle payments are required. If there are escrow payments for insurance or property tax, that continues unchanged. After the 5-10 years, your mortgage reverts to the original mortgage contract terms.

Don't Be Mislead by Lender Statements of  Not Qualified, Can't Refinance, Mortgage Upside Down, Short Sell or Foreclose

Whether you've never been late on a payment or are a year behind, if you want to stay in your home, get the help with mortgage payments that you need. But first find out for yourself exactly what you qualify for. Don't depend on your lender to find out what you qualify for. I have a client who did his own loan mod and reduced his payment $600 per month, that was great. We re-did his modification and discovered he qualified for another $1200 per month reduction. Yes that was a LA California property. The bad news is you have to wait a year once you modify a mortgage to re-modify a loan and it is more difficult (but still do-able) the second time, fortunately he only had to wait a few months to start saving that extra $1200 a month. 

We have compiled a database of TARP mortgage assistance programs we successfully negotiated with lenders since Oct 2008. As a free service we make this data available to home owners. We will run your information through the database and determine exactly what you qualify for under the government mortgage relief programs, your monthly payment, the modified interest rate and the years of mortgage rate reduction. 

The next time you hear, "Not Qualified, can't refinance, mortgage upside down, short sell or foreclose," find out what the truth is. Run your mortgage info through the database and find out for yourself.

You Can Do Upside Down Mortgage Modification to Modify Your Loan Into A Lower Monthly Mortgage Payment Without Refinancing, Even If You Are Current on All Your Mortgage Payments

The Author Dan North is available to run your information through our data base to find out for yourself what you qualify for on a loan modification. This is a free service available to all US home owners. Find out if you are one of the 70% who qualify under the Government TARP Mortgage Assistance Programs.

Call  406-546-2517 or email TARPdatabase@gmail.com

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