So you have Little or NO EQUITY and OWE MORE than your Home is WORTH!
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Some Marylanders are finding this to indeed be true do to the recent downturn in the housing market. Although, this doesn't necessarily mean that you can't refinance. Many of the Subprime and some of the Prime lenders are in quite a pickle right now. They are sitting on loans that are considered upside down regarding the pledged properties value and the projections for at least the near term market are indicative of an even greater and more widespread loss as the market works thru this crisis. <br>Now this doesn't mean that everyone's home is worth less that what they paid for it when they originally purchased the property or last refinanced it, but there are some areas where property values have decreased thus making the pledged collateral in those particular areas possibly worth less than what is owed on it.<br>Most, if not all States at this point have some areas that would fit into this category. While Maryland for the most part has faired pretty well through this strained Real Estate and Mortgage Market, some States, such as California, Arizona, and Florida have taken significant value hits. Don't get me wrong, Maryland Real Estate is not entirely immune to the effects of this market and we definitely have our fair share of equity loss in the residential real estate sector. There are some value issues with certain areas, neighborhoods, and even down to subdivisions across the State, just not quite on the scale as these other States. None the less, Equity Loss is Equity Loss regardless of where your property is located.<br>This obviously has had the most profound effect on those that purchased or refinanced at, or near, 100 of the value of there home at the time, not to mention the borrowers that took out loans in excess of the home value at that time (i.e. 125 Home Equity Lines). It's had an even more dire effect on purchasers / borrowers that took out Adjustable Rate Mortgages that are now beginning to RECAST, most significantly upwards, thus making their monthly payments escalate and placing further strain on an already strained budget due to rising costs across the board on nearly everything these days. This in turn has caused qualifying issues, namely Debt to Income Ratio problems, for people trying to obtain Home Financing.<br>But all is not lost; working with a knowledgeable and qualified Mortgage person such as myself or Dawn Frazier of Capital Mortgage, you may still be able to Refinance your home into a more affordable mortgage product while reducing the amount owed to the original lender. This is a specialized home financing mechanism that very few in the industry have the knowledge or contacts to facilitate and even fewer lenders are willing to lend on a property that is considered Upside Down in value. Each of these transactions are put together on there own merits, there is no cookie cutter template for getting them done. Just good old fashioned know-how, proper structuring, and a desire by all involved to make it happen. As is typical with most Home Financing transactions, time is of the essence. Not only because people needing these are typically teetering on Financial Disaster or Hardship, but also because in an area where Home Values are continually dropping it further complicates the process. Does this mean everybody will qualify? NO, but many will and would be wise to pursue this avenue.<br>I have the knowledge and contacts to assist people with this particular issue. So, if you've been TURNED DOWN by others due to value issues please feel free to contact us so we can further discuss your situation. (O) 410-288-4834 * Wayne's Cell 410-627-6653 * Dawn's Cell 410-627-6654<br>© 2008 Wayne Frazier ? All Rights Reserved
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