Tweet

Bud Gragg Articles

Guest post by: Bud Gragg

Where to Look for Help for Your Underwater Mortgage - Click To Read Article
Unlike the way they rushed to help the banks in 2009, the government is not in a huge hurry to do that much for you if you're in an underwater mortgage. Your mortgage holder is more likely to try to guilt you into continuing your payments than to offer anything approaching real help. And loan modifications are a joke-only 2.8% of the people who have applied have actually received them. That's not a lot of help when 24% of American homeowners are dealing with underwater mortgages, is it?

Your Life or Your House: Key Questions to Ask Yourself If You’re Facing an Underwater Mortgage - Click To Read Article
We aren't assuming that there's a one-size-fits-all answer to the question of what to do if you're dealing with an underwater mortgage. You're going to want to factor in a lot of different criteria before you decide whether to keep the house, try to short sell it, or walk away and foreclose on it. These are big decisions and they have consequences. Kristin and I know-we've been there! We decided on a combination of foreclosures and short sales to save our family's financial future (we are Realtors and had invested pretty heavily in residential real estate), but those routes may not be the best ones for you and your family.

What is an Underwater Mortgage? - Click To Read Article
If you read the news at all, you've probably seen the term “underwater mortgage,” but do you know that that means? When a mortgage is underwater, it means that the homeowner owes more on the mortgage than the house is actually worth. That's not supposed to happen. In fact, from roughly 1990 to 2006, no one seriously thought that underwater mortgages were ever going to be a big problem. We all believed that housing prices would just keep rising and that we could count on our building equity to give us all the other cool things we wanted. Like fancy cars, a new deck, or a guaranteed retirement.

Underwater Mortgage Loan Modification: Just a Band-Aid? - Click To Read Article
If you're feeling trapped by your underwater mortgage and are having trouble making your payments, you may be tempted to start thinking that the modification program you heard about just might be for you. We wish we could tell you differently, but that's just not the case. Most of the mortgage modifications out there aren't even a Band-Aid-they just prolong the pain; they don't heal it. And for the most part, you can't even get the Band-Aid.

Underwater Mortgage Meltdown: What Caused This Mess? - Click To Read Article
Roughly a quarter of homeowners in the U.S. are dealing with an underwater mortgage, and that number is probably going to rise to as high as a third. How did this happen? Wasn't residential real estate supposed to be the one guaranteed solid business investment a family could make? Well, have you ever heard the phrase “land speculation”? Because what it comes down to is that's what our whole country has been doing for more than 15 years. Here's what happened. In the 1990s, the federal government and Congress got the brilliant idea that more people should be able to actually own their home-that home ownership was the “American Dream,” and that little things like being able to actually afford a mortgage didn't matter quite so much.

Mortgage Advice from an Industry Professional - Click To Read Article
Normally the kind of mortgage advice we give is for people who may need to get out of their mortgages. But what if you're looking to dive into the housing market? What kind of mortgage advice do you need? Well, it certainly is a buyer's market out there with over a million foreclosed houses alone available for sale! If you're moving to take a new job or just like the idea of owning the place where you live, this might seem like a great time to invest in a mortgage and in a roof over your head.

More People Walking Away from Underwater Mortgages - Click To Read Article
No one knows for certain the exact percentage of foreclosures that are the result of people’s decisions to walk away from underwater mortgages, but we do know those numbers are on the rise. Reports indicate that from 14% to 18% of mortgage foreclosures are actually strategic defaults. In other words, people who are choosing to default on their underwater mortgages while keeping up on their other bills.

LTV: The Key to the Underwater Mortgage - Click To Read Article
If you're wondering whether or not you're in an underwater mortgage, the key is to understand your loan to value, or LTV, ratio. The LTV reflects how much you owe as a percentage of the total value of your house. So, for example, if you originally took out a $130,000 mortgage on a house that was appraised at $150,000, your LTV ratio would be 87%. In other words, you would then owe 87% of what the house was actually worth-a win for you once the mortgage was paid off, provided that the property value didn't change. Which, of course, never happens, does it?

Coming Soon to Your Neighborhood: Falling Home Values Mean More Underwater Mortgages - Click To Read Article
If you think the tidal wave of underwater mortgages has receded, think again. The fact is that the underwater mortgage situation is almost certainly going to get worse before it gets better. Why is that? In part because of an ugly little mortgage product called adjustable rate mortgages, or ARMs. You see, ARMs look great on paper. The homeowner gets a nice, low monthly payment for the first 1-7 years, depending on the terms you get. But then . . . well, then the loan payment resets to reflect inflation.

Don’t Be Fooled Again-Avoid Underwater Mortgage Advice Scams - Click To Read Article
If you're like Kristin and me, you've already been fooled once-fooled by the real estate bubble into thinking that it would never be possible for you to be faced with an underwater mortgage. We all know how well that's worked out for us, don't we? But if you're in an underwater mortgage now, don't let yourself be fooled again (with thanks to The Who) by falling for one of the underwater mortgage advice scams out there.

What to Do before You Try a Home Short Sale - Click To Read Article
Before you go to your lender to negotiate a home short sale, you need to be prepared. Most lenders haven't gotten it through their sometimes-thick skulls yet that short sales actually save them money over their costs not only in foreclosures but also what they have when they end up owning yet another vacant property.

Underwater Mortgages: The Inside Story - Click To Read Article
So how did so many American homeowners end up with underwater mortgages? Let us tell you a little story . . . In the beginning, there was the Clinton administration. And that administration, and the Congress that went along with it, told the banking industry that they had to find a way to make home ownership possible for people who couldn't afford it.

Underwater Mortgage Solutions: What Is a Short Sale? - Click To Read Article
Before we talk about short sales as a solution to your underwater mortgage, we want to give you a quick primer about the alternatives. That way you can compare short selling to the rest of the options you have when you're faced with an underwater mortgage.

Tsunami 2012: Why More of Us Will Find Ourselves with Underwater Mortgages - Click To Read Article
Very few people even considered this as a possibility from the 1990s on, but a tsunami was building then that led to the millions of underwater mortgages that are with us today. In fact, 24% of homeowners in the US have a mortgage that's under water, and one in ten of them owe 25% more than what their houses are worth! We know you want to think that we've hit bottom and that prices can only go up from here, but don't count on it.

There Is Nothing Short about a Short Sale - Click To Read Article
Think about it. Mortgage lenders currently have an inventory of 1.1 million foreclosed homes. Then there are all the homeowners who just want to sell because they've found something else, they're moving to take a different job, or they've realized that paying interest on a mortgage is a waste of money when they can rent for half the price.

The Most Common Underwater Mortgage Mistakes-And How to Avoid Them - Click To Read Article
Life can be stressful enough before you discover that you've got an underwater mortgage. There's a good chance that you were already pressed financially, and finding out the house you'd invested in for your retirement probably won't pay you a dime just seems to add insult to injury, doesn't it?

The Underwater Mortgage: What to Expect in Pre-Foreclosure-and Beyond - Click To Read Article
If you're faced with an underwater mortgage and have decided to foreclose, congratulations! We get that this is a sad time for you and your family, but on the other hand, you have almost certainly made the best decision you can in a difficult situation. That takes courage! But what can you expect in pre-foreclosure, foreclosure, and life after foreclosure? Let us take you on a tour. You see, we're not only Realtors-we're Realtors who have stood exactly where you're standing now: at the beginning of a new life.

Short Sale? Foreclosure? Options for the Underwater Mortgage Holder - Click To Read Article
Given the housing market, we're not surprised if you've just found out you've got an underwater mortgage. Right now 24% of all homeowners are in the same boat as you, with one in ten of them owing 25% more than their homes are worth!

Short Sale Training Boot Camp for the Underwater Mortgage Homeowner - Click To Read Article
Before you start down the long road of doing a short sale to get out from under your underwater mortgage, there are a few things you need to learn and other things you need to do. Don't worry-we know you'll be able to get through this.

Save Our Home: Mortgage Help for Struggling Homeowners - Click To Read Article
If you're struggling financially and you're looking for mortgage help to save your home, we're sorry but we don't have any easy answers for you. You could try doing what so many of us did earlier this decade-borrow against your home. But that assumes you have equity to borrow against and that there's no chance your house's value won't go down and leave you underwater on your mortgage and loan. Given the tsunami of underwater mortgages right now, with more to come, that's not a very good option.

Rebuilding Your Credit after Foreclosure on an Underwater Mortgage - Click To Read Article
We know it sounds unbelievable, but the truth is that there is life after your underwater mortgage and there is life after foreclosure-and it's not such a bad life after all! Kristin and I know what we're talking about. After the real estate bubble “popped” in 2007, we found ourselves underwater on several mortgages. We're Realtors, after all, and we believed what the “experts” had to say about how property values would never stop rising.

Looking for a Simple Short Sale Definition? Here It Is! - Click To Read Article
The easiest short sale definition is that a short sale is a situation where your mortgage lender agrees to let you sell your house with the stipulation that, once the house is sold, your business agreement is fulfilled.

How to do a Short Sale on Your Underwater Mortgage and Avoid Foreclosure - Click To Read Article
We know that things can look pretty bleak when you're faced with an underwater mortgage, especially if you're out of a job or your business isn't doing well. But the most important thing to remember is that you do have options. You don't have to be tied to that underwater mortgage until you're forced into foreclosure-you can short sell it and get out!

How to Do a Short Sale and Why - Click To Read Article
A lot of people today want to know how to do a short sale. With the state of the housing market and the economy, who can blame them? And the fact is that a short sale is one way to at least put off a foreclosure if not avoid one altogether. That said, here's what you need to know about how to do a short sale.

How Did We Get Here? Why Underwater Mortgages Are at an All-Time High - Click To Read Article
Homeowners weren't supposed to be drowning in a tsunami of underwater mortgages in 2010. Up until 2007, everyone-the government, the economic experts, and certainly the mortgage lenders-told us that property values were supposed to keep rising, not fall so hard! So what happened? Why are 24% of US homeowners dealing with underwater mortgages, with another 5% facing that prospect soon?

Home Short Sales: What They Are, How They Can Help - Click To Read Article
When you're looking at an underwater mortgage or are having the kind of financial difficulties that are pretty common in this economy, home short sales are one way out. In a short sale, your mortgage lender agrees to let you sell your house and agrees to take the amount you get for it-not the full amount of the mortgage.

Dealing with the Bank on Your Underwater Mortgage Short Sale - Click To Read Article
When you've found out you're in an underwater mortgage and you're having financial troubles, the bank is the last thing you want to deal with, isn't it? Sadly, the bank is the first thing you're going to have to deal with. For what it's worth, though, Kristin and I have been through what you're going through right now. We're fine, our family is fine, and we've managed to get out of our underwater mortgage situation without going into poverty.

Don’t Look Back and Other Tips for Life after Foreclosure - Click To Read Article
It doesn't matter why you're in the position of figuring out what your life is going to be like after foreclosure. Whether you're unemployed or in the midst of a financial crisis, or you found yourself unwilling to continue with an underwater mortgage, or you are in both positions, the fact is that you don't deserve to feel the guilt that your mortgage lender will try to heap onto you.

Can’t Afford the Payments? Free Mortgage Advice from a Realtor - Click To Read Article
If you've gotten into a hard place financially and are having trouble affording your mortgage payments, the last thing you need is bad mortgage advice. Your lender will tell you to pay that mortgage no matter what you have to do, from taking on 4 simultaneous part-time jobs to selling your plasma. Paid “consultants” will charge you an exorbitant fee to give you advice and help that you could have found online. Obviously, you don't want to listen to your lender or some high-priced mortgage scam artist. But you also don't want to take advice from anyone else who might have a financial stake in your decisions! Even people with the best intentions in the world can't help but be biased if they have something to gain or to lose.

A Stroll through the Short Sale Process - Click To Read Article
If you're having trouble making your mortgage payment but want to avoid foreclosure, the short sale process is one way to go. At the very least, you'll be able to put off a foreclosure for up to a year; at best, you could even end up renting the house you're living in now for half of your current monthly mortgage payment!

Underwater Mortgage? Here’s What to Do - Click To Read Article
Do you think you're in an underwater mortgage? Here's the first thing we don't want you to do: We don't want you to panic. First, while about 24% of homeowners today are facing underwater mortgages, that doesn't mean you are. So the first thing you need to do is find out exactly how much your house is worth right now

Underwater Mortgage Foreclosure Options- Yes, You Have Them and Here’s What They Are - Click To Read Article
It can be rough finding out that you've gotten stuck with an underwater mortgage. For more than 20 years, Americans have been making housing decisions based on the advice of experts who told us that investing in our own house was the way to the American Dream.

The Underwater Mortgage and the Cash-Strapped Homeowner - Click To Read Article
If the recession already has you strapped for cash, the last thing you want to find out is that you're one of the 24% of homeowners who are stuck with an underwater mortgage. After all, your house was supposed to be a good investment against hard times, wasn't it? You were supposed to at least be able to count on proceeds from the sale of your house to help you have a decent retirement.

Pre-foreclosure and You: Making Lemonade out of Lemons - Click To Read Article
Even when you know you're going to come out of the other end OK, being in pre-foreclosure and then moving on to foreclosure can be tough. You're walking away from the money you've already put into your house, after all, as well as walking away from an investment that's gone bad.

Short Sales 101: What You Need to Know - Click To Read Article
In today's housing market, short sales are just starting to look better to lenders, and the federal government has even chipped in with a program to speed them up. But what are short sales, and how can you use a short sale to avoid foreclosure when you're behind on your mortgage?

How Long Can I Stay in My House and Other Underwater Mortgage Questions Answered - Click To Read Article
When you first find out you've got an underwater mortgage, anxiety is a natural response. After all, you were counting on that house for your retirement, and suddenly you need to look at how to get out from under it before you get bled dry!

What to Do before Foreclosing on or Short Selling Your Underwater Mortgage - Click To Read Article
If you have decided to foreclose on your underwater mortgage, congratulations! We know what a hard step this is to take, and we admire your courage in putting yourself and your family first. With everyone from the government to pundits telling us we should hold ourselves to different, higher standards than the banks and lenders do, it can be really hard to see the trees for the forest, can't it?

Underwater Mortgage Advice: The New Financial Rules of Home Ownership - Click To Read Article
When you're facing an underwater mortgage you're facing a situation where none of “the rules” matter that much anymore. What rules are we talking about? We're talking about the rules that say that you must always pay your debts, no matter what. We're talking about the rules that say it's actually bad to look out for yourself and your family first.

There is Life After a Short Sale or a Foreclosure! - Click To Read Article
As Realtors, we know that a lot of our clients don't think that there's any such thing as life after a short sale or a foreclosure. They assume that their credit will be trashed forever, that they'll become social pariahs, that their foreheads will be forever branded with a great, big, red “L” for “Loser.” OK, maybe not that last one. But you get the picture. Most of us have let ourselves be so brainwashed by the banks that we really believe that a short sale or a foreclosure makes us bad people who deserve to be punished!

Need Underwater Mortgage Help? Here’s Where to Turn - Click To Read Article
Once you've realized that you have an underwater mortgage, the first thing we want you to do is take a deep breath. This is not the end of the world, and you're not alone-about 24% of US homeowners are in the underwater mortgage boat right along with you. We know this doesn't make you feel better. But, at least it should help you feel less alone and less like you did something wrong.

Referred by: http://www.meetkarennewman.com/



Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

2011 Global Brand Trends Letter

Executive Blind Spots

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.