Are you upside down on your mortgage (owe more than your house is worth)? Do you have a “Jumbo” mortgage (over $500,000)?
How would you like to:
- Keep your home
- Drastically reduce the debt owed on your home
- Drastically lower your payments
- Take advantage of historically low rates
- Create equity in your home, and
- Not damage your credit in the process?
There is a solution for you! Many lenders are selling upside down jumbo mortgage loans at steep discounts to investors with cash without holding you responsible for the difference! If you’re unable (or unwilling) to keep your upside down mortgage any longer and would like to drastically reduce your loan without damaging your credit, then you need to know more about some of the residential workouts that are going on “behind the scenes.”
The lenders who hold these loans are very concerned about them. They represent large chunks of these lenders’ lending portfolios, and they know the high risk of default they carry. Now more than ever these lenders are willing to sell, and they are willing to sell these loans off one at a time due to their large balances. After these loans are purchased by a cash investor, the new loan holder is able to discount the loans and sell them back to the original homeowner at prices good enough to allow 75-80% refinances—and the homeowner winds up with 20-25% equity, with no impact on credit!
I am familiar with a private investment group that specializes in assisting upside down homeowners to keep their properties by negotiating to purchase jumbo residential mortgages notes at a discount from the current lender. They are specifically looking for residential loans that meet the following criteria:
- Owner is upside down but wants to keep property
- Primary Residence only
- Non-Conforming (“Jumbo”) Loans only – from $500,000 to $5,000,000
- Mortgage must not be in default, and
- Owner must meet credit and income requirements to be able to refinance immediately after the investment group purchases the mortgage note.
Recently the investment group negotiated and purchased a discounted note on a home that had a $1,200,000 mortgage. The owner refinanced with a new loan amount of just $800,000, reducing her debt $400,000! She now has at least 20% equity in her home, a lower interest rate, a much lower payment, AND her credit was not dinged. They have arranged several of these purchase/refinance deals in the last few months.
The window of opportunity for these arrangements may only last for a short time, so if your situation fits these criteria, or if you need additional information, please contact Jennifer DuPlessis at 703-864-4597 or jendup1124@gmail.com.
It’s unfortunate, I think, that Fannie Mae- and Freddie Mac-backed mortgage loans can’t benefit from this program, but so far they are not eligible. For information about mortgage modification on non-jumbo mortgages, try the Making Home Affordable program.
L.F. Jennings, a Falls Church and Richmond-based general contractor, has started work on the first phase of the 370,000-square-foot Hilltop Village Center in Alexandria. The 33-acre Hilltop site at the intersection of Telegraph Road and Beulah Street has a 100-year history. Originally a chicken farm, it was later used as a quarry, a landfill and a golf course. Hilltop will be a mixed-use development.