Sadly, if you ask many Arizona residents this question, the answer is a resounding YES. There is good news for those that want to correct this situation, and the better news is that you might not need to short sell your home or even get the bank to approve a loan modification. The answer is a mortgage principle reduction.
This is a relatively new program, but it is helping homeowners not just keep their homes, but also adjust their loan to value ratio down to 90% of CURRENT MARKET VALUE. This accomplishes two major financial goals for the homeowner:
1. It gives them equity in their home once again. There are few things more discouraging than paying a mortgage on a home that you never feel will be paid off. With this program, you are already 10% ahead of the game.
2. By lowering their mortgage payment, it frees up income that they can use to put themselves in a better financial position.
If you currently owe more than 25% of your current home’s value and your monthly debts would be less than 50% of your monthly income with the new lower mortgage payment then you are a top candidate for this exciting new program.
So how is this possible?
The simplest way to explain it without you needing an economics degree to understand it, is that there are institutional investors that can buy mortgages in bulk from the banks right now at a deep discount. This is because the banks are struggling and taking such huge losses on foreclosures, delinquencies, short sales, and loan modifications, that they would rather work with institutional investors to unload these mortgages. These same investors will look at your loan to see if they can add your note to their pool of loans to purchase and then will refinance it back to you at 90% of the current market value. It is a win for you, the investor, and the bank.
If you would like to see if you qualify please call 800-578-1897 for your FREE consultation.
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