Top Five Resources for Upside Down Homeowners

Upside down in your home and facing difficult financial times? Take control of your situation today and exhaust all the resources available to you! Don’t know what those resources are? Well, I’ve gathered the top five resources here to help you get started.

1. First, you need to know what kind of a loan(s) you have. If you have a Fannie Mae or Freddie Mac loan, you may qualify for either a refinance or loan modification through the Making Home Affordable Plan introduced earlier this year by President Obama. Click here for the Loan Look-Up Tool and find out if you have a Fannie Mae or Freddie Mac loan.
2. Find out if you are eligible to refinance your home – yes, this is possible when you are upside down in your home (as long as your first mortgage does not exceed 105% of current market value). See the previous link for more eligibilty requirements).
3. If you can’t refinance, find out if you can qualify for a loan modification. You don’t need to be delinquent in order to qualify for this program! See the previous link for more eligibility requirements.
4. Contact a HUD-approved housing counselor to help you determine your eligibility, walk you through the documents your lender will need, and can sometimes contact your lender with you (by the way, this is a free service offered by HUD). Find a HUD-approved (not-for profit) housing counselor here.
5. Contact your lender and open the lines of communication about your situation. Be sure to have your facts straight before you call so that you can give an accurate accounting of your financial situation. Each lender works a little differently – be prepared to be transferred around before you get to the right department (keep accurate notes of the date and time you called, who you spoke with, their contact information: phone, mail, fax, and email, the name of the department that they work in, and the outcome of your call). Don’t get discouraged if your first few calls don’t yield the response you were looking for. Be polite, but persistent and clarify or repeat back the information that the representative gives you so that you are sure you understand.

Each situation is different and presents different challenges and possible solutions. If you are overwhelmed with this process, don’t be afraid to ask for help. As a Certified Distressed Property Expert (CDPE), I can be an advocate for you and help connect you with a local CDPE to consult with you and walk you through the process. Know that you are not alone, there are many people who are in the same position as you and there is help! Contact me today and get started on the road to recovery!