Negative Equity Loan Modifications

With real estate values dropping drastically in certain areas throughout the US people are finding themselves way upside down on their mortgage. Negative equity means that you owe more than your home is worth. 95% to 100% financing on interest only loans were handed out by the thousands. Now, borrowers who bought high in areas of rapid appreciation are facing the downward slide of values. With these types of loans, it is common in many parts of California, Florida, Nevada, Georgia and other states to be over $100,000 negative. Why would a borrower pay a $4,000 a month mortgage payment when they could rent the same house down the street for $2,500? Yes you will take a credit hit for foreclosing, but three to four years from now you can buy again. The savings on this example is $54,000 over three years in payments and who knows if the property value of the home will even be worth what they owe by then. We can make banks realize this. With the right program and expertise you can get your balanced reduced to market value (lowering your payment) so that you stay in the home and keep paying your mortgage. The bank doesn’t want your house back so they will negotiate with us to let you keep it on reasonable terms. Negative equity loan modifications are not handed out easily, but with the right team behind you there is hope.