Upside Down Mortgages, Loan Modification, and Refinance - What You Need to Know

Loan modification and refinance are not the answers to an upside down mortgage. Yet thousands of people are using these methods as a solution. Here is some information to get you thinking your way out of the box and show you another way.

Home Loan Modification Creates More Debt, not Less - Unpaid interest, fees, back (or unpaid) taxes, or other costs are often rolled into the new loan. So, even though your loan term may be extended, or the principal lowered: you actually owe more money. Next surprise? You have even higher monthly payments than before. Not good news.

Plus, many lenders are finding that this scenario is leading even more home owners down the road toward default. After all, if you were having difficulty with the original house payment you are probably not going to find it any easier with a re-worked loan that has additional fees included.

Home Mortgage Refinancing often Looks like a Great Option. It often can be.... If you have equity in your home, or your great credit means you can obtain a lower interest payment with a lower monthly payment. With an upside down mortgage none of this works in the same way. There is no equity to pull out, so finding a lender that will even look at creating a loan for you is going to be extremely difficult and very time consuming.

And. In today's information heavy and work laden lives, who HAS the time.

Want to Learn about another Choice? It is called a Short Sale. Short Sales were designed to support selling your home when the loan amount exceeds the market value of the house. In other words, you lender will agree to you selling the house for less than you originally paid for it!

Why do Banks like Short Sales? Because it is the easiest (read least costly) way for them to recover the money you owe them. They actually do not want to use additional dollars to chase after anyone for repayment, or repossess your home, then list it and use valuable manpower hours to deal with the administration costs to place the house up for auction.

Why do Short Sales work so well with Upside Down Mortgages? Well, this is a business transaction rather than a foreclosure. It makes no sense to lenders to hold on to a piece of real estate where they will never realize the full loan payoff. Banks are also in the business of making money, not losing it. They will jump at the idea of a smaller financial loss (short sale) to avoid a much larger loss (foreclosure).

What is the Best Solution? Working with a true professional who knows the ins-and -outs of the process is highly recommended. How do you do that? Well, ask around. Find someone who has perhaps been through this process themselves, and certainly has a lot of experience with the process.

And now I'd like to invite you to get your FREE Instant Access to my report "The #1 Secret to Eliminate Your Upside-Down Mortgage, Save Thousands of Dollars, and Buy a Better Home for Less" when you visit http://www.upsidedown-mortgage.com

You'll learn how to save hundreds of dollars each month, save your credit, get approved to buy a better home for less and eliminate your upside down mortgage in as little as 90 days.

From Jose Nunez, licensed real estate broker and The Upside Down Mortgage Expert - Upside Down Mortgage