“Millions of Homes Still Underwater”

Many homeowners have experienced appreciation when it comes to the value of their homes and many are no longer under water.

I was able to refinance John’s home. The third time was a charm, the previous two times, his 2 mortgage obligations totaled more than the value of his home. Finally the value exceed the balances of the two mortgages and we were able to save him nearly $650 per month. His monthly goal is to take the monthly savings and pay down principal. Great goal!

Ray, however the opposite result. He owes $560,000 and the appraisal came in $100,000 less. Many would have folded their tents and said enough, I am not making any more payments. With taxes and insurance he is paying nearly $6,000 per month. He told me, that he was going to make the payments, no matter what.

Unfortunately Ray’s mortgage does not qualify for any program that would allow him to refinance, when he owes more than the value of his home. There are so many in the same situation as Ray, they say over 9,000,000 homeowners, most of which make their payments on time each and every month, because that is what they agreed to do.

The only light at the end of this tunnel, if they keep paying down principal and have a modest appreciation, at some point, they will be able to refinance, hopefully at lower interest rates.