mortgage rate reduction for homeowners
DESCRIPTION
Between the years of 2002-2007, many homeowners took out two separate loans to purchase their homes. The first loan covered for 80% of the value of the home and the second loan picked up the remaining 20%. This allowed them to avoid or reduce mortgage insurance and buy homes they would not be able to afford otherwise. These loans are generally held by two different lenders.TRANSCRIPT
CONTACT:RE ACQUISITIONS(800) 824-8122
[email protected]://WWW.SELLHOMEOWNER.COM
Mortgage Rate Reduction for Homeowners:
The 80/20 Mortgage
Between the years of 2002-2007, many homeowners took out two separate loans to purchase their homes. The first loan covered for 80% of the value of the home and the second loan picked up the remaining 20%.
This allowed them to avoid or reduce mortgage insurance and buy homes they would not be able to afford otherwise. These loans are generally held by two different lenders.
This means that right from the start these homeowners have a second mortgage on their home. When the housing market started to crash and interest rates skyrocketed, their mortgage problems were double that of a couple with a traditional loan.
Unfortunately, President Obama’s plan has requirements that make it difficult for homeowners in this situation to take advantage. The requirements state that the second loan must agree to a subordination clause.
A subordination clause (in this case) means that the lender agrees that they will be second to benefit from any sale of the property, should it go into foreclosure. And though this is a standard request, the fact that it is being asked as a part of a foreclosure loan program may make it difficult to get the secondary lender to agree.
Negotiating agreements can be a challenge and is definitely not something a homeowner should do on their own. However, each case is affected by many variables and there is no one formula that will guarantee success.
“We recommend that homeowners hire a licensed and bonded mortgage broker to represent them in negotiations. They simply aren’t best served by attempting to tackle this on their own,” reports a source from RE Acquisitions. They are a mortgage rate reduction firm in Portland, OR.
It is easy to let the pressure of today’s economy build into a feeling of hopelessness. But before you walk away from your house, contact a debt negotiations specialist like RE Acquisitions (www.sellhomeowner.com) for help. You have options, don’t lose your house without exploring all possible alternatives.