“Deadly” Alternative Program – LOAN MODIFICATION
Sample Scenario for modification consideration - payment reductions
Current Home Loan Value => $400,000.00 Loan Fixed Rate => 7%
= monthly pmt of $2,661.21 …..total pmt =$958,036
$400,000 loan at 6% 30yr fix = $2,398.20 . . . . .total pmt = $863,352
$400,000 loan at 6% 40yr fix = $2,200.85 . . . . .total pmt = $1,056,408
$400,000 loan at 6% 100yr fix = $2,005.04 . . . .total pmt = $2,406,048
Home owners! Accepting this ’solution’ means:
- you acknowledge the full debt regardless of the value of the home
- waive all rights to fraudulent or predatory lending claims in the future
- turn your loan into a full recourse loan that could follow you for life even if you chose foreclosure down the road
- in most cases you remain an underwater, full-leveraged, renter for the rest of your life
- at 38% housing debt-to-income ratio plus all other debts, you will save no money
If widely accepted by home owners this will ruin the American consumer and make housing a dead asset class for decades. If you are in a serious negative equity position when signing these forms when most are, remember that you will:
- never be able to sell your home
- never be able to buy a new home
- never be able to rent your home due to owner occupant provisions
- be responsible for the full loan amount even if the value of your home keeps dropping for the next 10-years!
The 38% debt-to-income ratio on top of all of your other debt means you will save no money and live hand to mouth to keep this underwater roof over your head.
Remember... "More POWERFUL Than a Loan Mod"
"SOLUTIONS" will allow you to...
