Upside Down Mortgage Solutions - We CAN All WIN

April 11, 2011 - PRLog -- The traditional ways of dealing with mortgage stress, negative equity, upside down mortgages etc are well known and there are many honest and reliable specialists who deal with this awful situation very well.

But the process can be time consuming and difficult and almost always has some repercussions with regard to one's credit rating/score and cash flow. The follow-on can lead to future hassles getting another home loan, amongst others.

Just suppose there was a way that gets your house sold (quickly) at current market value (even though your loan is higher), the bank remains unconcerned and happy, and the buyer is chuffed to own their own home? No repercussions, no hit on your credit score, no difficulties down the road.

Here is an example:
Jeremy and Fran bought their home for $560 000 five years ago.
With the onset of the GFC they saw the value of their home drop to $480 000
Jeremy was laid off and money became tight.
Keeping up the loan payments of $3270 per month was a serious issue

Here is a WIN-WIN-WIN solution:
Jeremy and Fran sell their house on "Seller Finance" and "No Bank Loan Required"
Lots of buyers like this idea - Jeremy and Fran vet them all and choose the best cash flow buyer.
The Buyer pays Jeremy and Fran a monthly payment equal (or even greater than) their own loan payment. This is against a seller-financed loan of $480 000 at an interest rate only 1.5% higher than Jeremy and Fran's bank loan rate.
After a few years Jeremy and Fran's loan has reduced to the same amount as the seller-financde loan. Also the buyer has built up some equity and a good payment history and can now get a home loan from a main street bank.
The buyer pays out the balance of their loan to Jeremy and Fran who then pay out their bank loan.

This is not a new process or strategy. Maybe it has been forgotten or misunderstood. It is simple, effective and particularly relevant to todays financial battle ground. It is a lifeline that many may prefer to the others that are already out there. We are in an era where we MUST think outside the box or die!