Underwater?

How will it work when most of the programs have not? Well, by refinancing your present loan and forgiving at least 10% of the debt right out of the gate. Only special borrowers will be able to participate and the lenders will have the exclusive authority to pick those borrowers they will allow to use the new program.

In the past year almost fifty percent of the 1.3 million home owners that have qualified and filed for the main administrations relief program have failed. This is not looking good at all and most of us know that the process is hugely negative on most families.

So, with the FHA looking over it’s shoulder, the new program is aimed to please those who may have a chance to save their homes but know that by doing so they are putting themselves in financial slavery for years. Witht he 10% reduction on the debt, many people will look at this as a possible alternative to a foreclosure, at least for the time being in Nevada.

What I am seeing come through our doors is a lot of people who have not made a payment in over a year, have fought the system to modify their loans, have reached an agreement with the lender only to see the new loan docs come back at a higher mortgage payment and not less.

It’s confusing to most people how this works but you have to remember, the pied piper must be paid so all those late payments, penalties and legal fee’s are attached to the principal making your loan even more. The new program will pretty much void these costs by the swap out.

Now you just have to decide, is it worth it? Most people in Nevada know that the values have dropped 56% since the height of the real estate boom, so now what do you do with the rest of the negative 46% is the question.

Our firm still recommends short sale vs foreclosure for primary residences. Re-build your credit for the next 24 months and then buy a new home for a reduced price and live happily knowing that you ultimately dodged the bullet.

Call me for a consult. We have a lot of wands and wizards in our arsenal.