Do you know about - Do Upside Down Mortgage Holders Have another choice besides Short Sales?
Mortgage Interest Rates Today! Again, for I know. Ready to share new things that are useful. You and your friends.Are there any other options for upside down mortgage holders also short sales? There rejoinder is now yes. A new agenda known as a vital balance discount is being offered to upside down homeowners that meet a few basic qualifications. As long as the mortgage(s) is worth at least 25% more than the value of the asset and the applicant can document a debt-to-income ratio of 50% or less (based on the new, lower monthly mortgage payment) the negative equity can be fully eliminated straight through a vital balance discount program.
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A vital balance discount agenda is essentially a large scale Note buy agenda consisting of heavily upside down homeowners, some current on their payments and others that have already stopped production their mortgage payments. Due to the fact that asset owners who owe more than their asset is worth are very likely to default in the not so distant future, the Notes are sold to the new buyer (in this case a Billion dollar hedge-fund) at a steep discount to current market value. The new owner of the Notes, the hedge-fund, then turns colse to and changes a consolidate of terms of the existing Note they just acquired. The superior mortgage balance is reduced to 95% of current market value and the interest rate is changed, to either 6.25% or 7.25% depending on the homeowners credit score. The once upside down homeowner now has a permanent vital discount often amounting to hundreds of thousands of dollars in savings and the hedge-fund makes a quick profit and turns colse to and repeats the process with new clients.
Are short sales a thing of the past? Possibly. If a homeowner qualifies for the program, why just walk away from the asset and let person else get a great deal. Also, short sales have negative tax implications and don't do your credit any good. A vital balance discount agenda allows the homeowner to essentially short sell the asset to themselves without the negative tax implications or ruining their credit rating.
The hedge fund has a very high success rate at purchasing these Notes at a sizable discount to market value. The portfolios presented to the lender, often consisting of over 100 properties, are all upside down by at least 25%. These are toxic assets that if haven't soured yet and going to at an alarming rate in the coming months. The banks know that homeowners with no equity and especially those so upside down as the participants in this type of agenda are very quick to hand the keys back to them if the slightest financial challenge comes their way. Rather than wait a year or two and have to go straight through the expense of a foreclosure only to end up with what they are being offered now to take this entire lot of souring "assets" off their books, the banks are understandably jumping at the opportunity.
There is a nominal fee to participate in the agenda and it is paid after the homeowner has been prequalified and is submitted with the faultless container of supporting documentation. In California, there are actually no upfront fees to participate in a vital balance discount program. Once the word gets out that a agenda like this even exists, the flood gates will open with homeowners rushing to shave hundreds of thousands of dollars in negative equity permanently from their mortgage balance. If you would like more data about a vital balance discount program, visit http://www.short-sales.org and request a free consultation with a vital discount Specialist.
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