In today's economy, many homeowners are finding that their financial situations have changed, and this often results in the inability to make high monthly mortgage payments. This is especially true for borrowers who financed a large loan at higher interest rates when the economy was stronger and the housing boom was present. For these borrowers, foreclosure or short sale might seem like the only options. For those hoping to remain in their homes, however, there is another option that can help. … [Read more...]
Negative Equity and an Upside Down Mortgage
Owning a home that is worth less than you paid for it is bad. A mortgage with a combined balance or individual balance that is greater than the value of your home only makes matters worse. If this is the case then you have a negative equity mortgage or an upside down mortgage, whichever you prefer. Most people who have a negative equity mortgage or an upside down mortgage don't know what to do so often times, they do nothing. If you are looking for ways to reduce your mortgage … [Read more...]
Your Negative Equity Mortgage Refinance and The Making Homes Affordable Program
If you think you can refinance and are facing foreclosure due to your negative equity in your home, think again, there might be hope just yet. There is a government sponsored program called Making Homes Affordable that was set up to help struggling Fannie Mae and Freddie Mac. In order to help those who had a negative equity position in their home the program changed the guidelines to allow for mortgage refinances. If you didn't know, Fannie Mae and Freddie Mac were struggling. The real … [Read more...]