Luckily for readers of Palo Alto Free Press, there is an exciting new strategy that has just become available to distressed homeowners and is not a short sale or loan modification. First let me mention that this only works on jumbo mortgages.
Jumbo mortgages that were taken out during the height of the housing market several years ago (especially 2006) are most in danger of being upside down, and the funny thing is that jumbo loans used to be regarded as safe investments for banks, but now these type of mortgages are increasingly seen as problematic by homeowners who do not see any sign of their equity improving.
In a recent news article “Jumbo Mortgage Holders Pose Highest Risk of Strategic Default” by Kenneth R. Harney published in the Los Angeles Times on November 13, 2011 and in the Washington Post on November 11, 2011, this growing trend is analyzed and given proper perspective. Sadly, until recently, there seemed to be no clear exit strategy for homeowners that were upside down, besides strategically defaulting and walking away from the situation. However, the financial and legal consequences, not to mention triple digit damage to credit have posed a huge burden to homeowners who were considering taking a strategic default. More than 12 million mortgages are estimated to be underwater, and 30% of defaults on loans are strategic.
Jumbo mortgages are also known as non-conforming loans, because they are above the limits set by Fannie Mae and Freddie Mac. This conforming loan limit is set at $417,000 but can be higher in areas where home values are greater. For example, the conforming loan limits since October 2011 for Santa Clara, San Mateo, San Francisco and Alameda Counties are all set at $729,750.
Now, if you’re unable (or unwilling) to keep your upside down mortgage any longer and would like to drastically reduce your loan (without damaging your credit), then you need to know more about some of the residential workouts that are going on “behind the scenes.”
Did you realize that many lenders are accepting payoffs at 40 to 50 cents on the dollar… without holding you responsible for the difference!
Darla Y. B. in Michigan just cut $400,000 off of her mortgage.
My name is Crystal and my investment group and I specialize in helping upside down home-owners keep their properties. The strategy is simple. We purchase your debt at a discount from your current lender and then sell it back to you – saving you thousands from your original debt!
When I first heard about this, I thought it must be too good to be true. Once I checked it out, I realized that many banks are ready and willing to accept a fire-sale cash price to get jumbo loan mortgages off of their books! This window of opportunity may only last for a short time, so please call me now at 1-800-390-4334.