Welcome to San Diego Blog | January 17, 2012

Upside Down on your Property?

If you are upside down on your property, we have a solution for you!  It’s better than a short-sale and definitely better than a foreclosure.  Whether you are looking to sell and move on or you want to stay in your home, but can’t afford the payments.  We can  help!

This program got our family back on track!

Non-Short sale

We can sell your home and get you out with 2-5% of the sale price to cover your closing costs and get you on your way.  The best part…no negative implication on your credit because at the time of close, the property is not really a short sale.  So what is the catch?

  • You must be 120 percent or greater upside down on your property
  • You don’t need to worry about income qualification
  • Takes 60-90 days to complete

Principal Reduction Program

If you want to stay in your house, but are over 120 percent upside down, we can reduce the principal to current market value!  Yes, that’s right…drop the loan amount to current market value!

I’ll use an example of a client that bought a condo at Electra for $950,000 in 2007.  Today this exact condo is worth $625,000, but the buyers owe $840,000 at 6%.   Their loan principal drops from $840,000 to $625,000 and the rate went up to 6.5% because the property is now an investment property (tenant occupied).

The monthly payment in this scenario for principal and interest went from $5036 to $3950 so the owners are saving more than $1000/month!  Best part, the loan is a 30 year fixed with no prepayment penalty and there are no negative credit implications!  So what’s the catch to this program?

  • You must qualify for the new loan payment
  • The program does have a few associated costs like appraisals
  • It works for Single Family, Condos, Co-ops, Multi Units and more.
  • approximately 60-90 day period

We don’t give too many details as we don’t want to teach our competitors our secrets, but give us a call and we will go over the specifics with you.  These programs are here to help so don’t hesitate to call and ask for more details.


Written by: chad

Categories: San Diego Real Estate, Sellers

  1. Gus A Gonzalez says:

    350 West Ash condo. First mortgage 402,000 held by B of A. Second mortgage 106,000 held by former IndyMac Bank. Condo purchased in 2005 for 550.000. Estimated appraisal is 350,000. Would like to keep and looking for principle reduction and new jumbo loan.

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