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Options For Underwater Mortgage Holders

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Are you currently having problems keeping up with your payments but also discovered that no one wants to purchase your home for more than you owe and even simply what you owe on it? If this is the situation, your home’s mortgage is more than what your home is valued at, so you are what is termed an “upside down mortgage holder.”

Many people are probably dismayed when they discover they are upside down, and till just recently, they probably never heard about something referred to as a short sale, which is actually just selling your house for whatever you could get and then preparing an agreement with the mortgage lender concerning the remaining balance due.

The majority of people are not thrilled with the short sale technique, but really do upside down mortgage holders have an alternative other than short sales. The solution these days is yes. There’s a new program out there now known as the Principal Balance Reduction Program.

A Principal Balance Reduction Program is essentially a plan where home notes are sold to a hedge fund at a huge price cut, the hedge fund decreases the total of principal owed to 95 percent of the market value and alters a number of terms and the rate of interest for the property owner.

Is this brand new option for you should you be an upside down mortgage holder who’s been considering a short sale? Quite possibly. The huge benefits to you would be considerable savings, the ability to keep your home by effectively short selling the house to your self, and keeping your tax incentives and not ruining your credit history.

For those who find yourself dealing with the housing crisis head-on, you might want to learn about the principal balance reduction program. Do upside down mortgage holders have a choice other than short sales? Absolutely. That being said, check into it should you have to.

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Written by Christopher M. Chenowith

June 30th, 2010 at 2:17 pm

Posted in Foreclosure

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