Jumbo Mortgages May Be Next In Line To Default
Do you have a big mortgage and good credit but not much equity -- maybe you are even underwater?
Do you see little chance that your homes market value will improve much during the coming 3 to 7 years?
If you answered yes to both those questions -- and thousands of homeowners across the country could- you are in a category that lenders need to worry about MOST!
Prime Jumbo borrowers who once were thought of to be among the safest bets, now are the most likely to opt for a strategic default and walk away from their homes.
That's because an exceptionally high number of jumbo owners -- many in high-cost markets hit by real estate deflation over the past several years- are stuck with persistent negative equity.
More than half of the jumbos analyzed by Moody's where owners are still making payments have home market values lower than their outstanding loan balances.
Meanwhile FICO says strategic defaults -- in which owners who CAN afford to keep paying their loans, but see no economic rationale for doing so and stop making payments -- continue to be a "Growing Problem."
The estimated number of mortgages underwater is at least 12 million, and 30% of all defaults on loans are strategic, according to Joanne M. Gaskin, FICO's predictive analytics director.
At least 4 of the 10 largest lenders are contacting these high-risk borrowers and offering financial solutions plus information about the costs associated with strategic walkaways.
"How much have I lost on the value of my home?" "What is the velocity of change?" That is, "how fast have I lost market value, and is my situation getting worse?" And, "How long will it take to recapture what I've lost?"
These are the questions Jumbo home owners are asking themselves right now and when the answers are grim and the prospects for equity recovery distant, the probability that the owners will plot a strategic departure goes sharply up.
Most consumers have a pretty good idea of what the market is doing in their local neighborhoods, but what they don't often know, however, are the penalties they face for walking away.
These include Triple-Digit drops in credit scores- which will hamper their ability to rent a house or obtain credit for years- plus the possibility that lenders will find a way to seek recovery of what they owe after the foreclosure proceedings.
Ultimately, strategic default for many owners boils down to a calculation... Are the costs, financial and otherwise, worth the relief from an albatross mortgage?
Thousands of jumbo borrowers are struggling with that calculation right now, and a lot of them are likely to bail.
But, what if there were a solution that allowed the home owner to save hundreds of thousands off their mortgage, keep their good credit, regain some equity, keep their home and not worry about getting a 1099 from the bank for the loss in the mortgage value.
Well, there is a way.
We can help jumbo loan holders get the solutions they need to change their situation and avoid foreclosure and ruining their credit for years.
This is NOT a loan modification or a short sale which DOES ruin your credit.
To find out more call today 850 368 7177 to see if you qualify to save hundreds of thousands on your mortgage and take back control of your home and your life.
Please take a moment to share this video with your friends and family who you know are struggling with these tough questions and calculations right now and are considering walking away.
Pick up the phone and get them to watch this video, or share on Facebook and Twitter and let them know there is a solution.
Thank you for watching and we look forward to hearing from you soon and solving your upside down mortgage problems.
Call now 850-368-7177 for more details before it's too late.
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