Monday, December 22, 2014

Is there an Upside to an upside down mortgage? Yes. Mortgage Relief Solutions.

We talk to countless people who contact us each week. Each one has a situation. Some are unique and some are not so unique. However there is a common problem that they all have. The Mortgage Payment.

There are those who can no longer afford to pay their current mortgage and there are those who do not want to pay the mortgage on their current home for various reasons, mostly financial. Sure we can get into the argument that perhaps they should not have entered a mortgage agreement and bought the house in the first place.

But the problem exists. The first thing every one does is to try to sell the house of course and they all run into the same problem: they owe more on the mortgage than the current value of the house. Sure they can still contact a Realtor and place the home on the market but the homeowner will have to come up with the difference in many cases thousands of dollars in addition to closing costs. If you're upside down or underwater by just 10 percent that still translates anywhere between $10k to 40k for many homeowners. Who has that kind of expendable cash on reserve for this? Who wants to take out their savings, retirement or 401k to sell their house?

Okay. A traditional sale obviously is not going to cut it. Enter the "short sale". The most common solution that is offered by your local friendly Realtor. Basically this is an option that has to get approved first of all by your lender, bank or servicer of your mortgage loan. You must get through that hurdle first. While you are waiting for approval which can take anywhere between 3 to 12 months on average you still must pay the mortgage, insurance, taxes and maintenance.

If you're still in the home that might not be to bad, you're just waiting for yes or no from the lender...unless you have to move out for personal or financial reasons right away and that 3 to 12 months of mortgage payments can be financially taxing especially when you have to pay rent or lodging somewhere else aka double payments. This is especially true for those who have an unoccupied home. Living somewhere else and paying the mortgage on the old home.

What happens if you don't get approved or the buyer can no longer close or buy? Those 3 to 12 months payments on an empty house can be financially taxing. This happens a lot with short sales. Potential buyers get discouraged by the long wait and process and often find another home.

What about the difference between what you owe and what the lender will short sale for? Known as the deficiency amount. Some lenders can and will still come after you for that amount later. Sure you might be in a state that does not allow the lender to come after you for the deficiency amount. That's would be great if that's the case. Some lenders will even allow as part of the short sale agreement to not come after you for the deficient amount. But of course all this will have to be negotiated skillfully.

But deficiency or not, what happens to your credit because of the short sale? Many homeowners are unaware that the severe credit drop because of a short sale is about the same as a foreclosure. Sure it won't be listed as foreclosure on your credit report but the score will be nearly the same. (See the accompanying graphic). Realtors are supposed to give full disclosure and this is one of the things that most often is not disclosed. After all Realtors make a commission and get paid off of the short sale of your home that's why they recommend it and push for a short sale option and homeowners are generally not allowed to profit or make any money from the sale of the home.

I have nothing against Realtors. Many are my friends and are in my network. I worked with many of them on occasion and have a family member that's a Realtor as well. Some homeowners will want to go for this "nuclear option" and short sale and it may be the best option for them. An experienced, qualified and capable Realtor will get it accomplished in most cases. the alternative
A similar credit drop for short sale as a foreclosure!

Okay. Rent out the home. Aka land lording. This is an option if you don't mind dealing with tenants who will call you regularly for the simplest things to major repairs. All coming out of your pocket or bank account. Not to mention you still have to pay the taxes, insurance and general maintenance on the property. Also you most likely have to still pay a portion of the mortgage if market rents in your area are below your monthly mortgage amount. Basically your tenant will be paying part of the mortgage but you will pay the rest out of your pocket including maintenance, repairs, cleaning, evictions and court costs.

Hire a property manager. All of the above included plus the property managers monthly fee to collect your rent from your tenant and keep tabs on the property. An extra cost to you.

Now lets put things in perspective. We are not talking about those who can wait a few years or more for the market to hopefully improve so they can sell to the point where at least they break even. They don't mind shelling out a thousand or more every month to a negative equity situation with no return on their money.

No. Were talking about people who MUST move now. Who do not want to make another mortgage payment or cannot make another mortgage payment. The house is a liability instead of an asset. Draining whatever finances you have left every month.

No. We're talking about the doctor who told us the money and employment was out of state and he had to go now. His home was upside down or underwater and couldn't sell now and he couldn't sit and wait. He turned his mortgage and home over to Mortgage Relief Solutions and moved on.

No. We're talking about the head of the house hold who said there was a job waiting in the nearby city for him and his house can't sell now but he had to go now. We took over...he moved on.

No. We're talking about the woman or man whose ex spouse left them the house and mortgage in a divorce decree but could not afford it single handedly. We took over...they moved on.

No. We're talking about the couple who tried to rent out to tenants only to get into a financial hole because of evictions, repairs, new carpet, paint and missed monthly payments among other things.
We took over...they moved on.

We could go on with more examples of those we have helped reduce their stress and financial burden. 

If you need to get out from under your current mortgage payment and house NOW and you can't sell your house because you owe more than what your house is currently worth call us, Mortgage Relief Solutions. We'll take over your mortgage payments and house. If you currently occupy your home just tell us when you will vacate and we'll start the process and finalize around that date. If its unoccupied we'll start the process now.

It does not matter how much you are upside down or underwater on your mortgage, we'll take over payments regardless.

Here is a recap on the process and steps. You may call us at (602) 753-7828 or email to at anytime for details, questions or concerns.

Step 1.  Property Fact Form. This will allow us to get an idea of your mortgage situation and property. We will then contact you within 72 hours to discuss your situation and answer all your questions. This is not a mortgage or refinance application. We do not sell, rent or exchange your information in any way or to any third parties whatsoever. Click here to  ---> download the Property Fact Form or download the one in the email sent to you. <--- Or go to our website at and go to the contact page and download from there.

Step 2. If you've decided to move forward with the process after our initial consultation we will then request photo's of the property and mortgage documents from you including an authorization (LPOA) to speak with your lender/mortgage company in order to verify with them your mortgage documents, payments, interest rate, etc.

Step 3. After the verification we'll then send you an agreement/contract to sign with a date of approximate closing and takeover of the property.

Step 4. Once we've satisfactorily verified the mortgage with your lender/ mortgage company and you've signed the agreement with us, we will then provide to you the final closing documents for you to sign and get notarized. We'll then have the appropriate document(s) recorded at your local county recorders office. At this point we take over and you move on.

Mortgage Relief Solutions. We take over...You move on. We are Nationwide and Local

Best regards,

Eric Brown
Property Acquisition Manager

Mortgage Relief Solutions
2375 E. Camelback Road, Suite 600
Phoenix, AZ 85016
(602) 753-7828
(602) 383-3630
(877) 571-3631