The Adjustable Rate Mortgage was an often advertised loan prior to and during the “height” of the real estate market back in 2005 through 2007. After the fall of the big sub prime lender, property values have declined over 50% in some cities.
The Adjustable Rate Mortgage being written within the Santa Clarita Real Estate community was very prevalent in the “hot years”. We get lists of Adjustable Rate Mortgages that are turning(adjusting). The lists are long and there are very few options for those homeowners.
Without the equity necessary to re-finance, you are left with very few options. Depending on what index your Adjustable Rate Mortgage is dependent on will depend on how much your payment will increase. If a homeowner had the money available they could inject it into their current home, making the numbers reflect equity, and re-finance into a 30 year fixed rate mortgage.
Also, if you still have your loan document lying around you will be able to find out how much the rate can increase (there is usually a cap). You will also be able to find out what “index” your ARM(adjustable rate mortgage) is dependent upon. Furthermore, check your statement, some banks have all of the detailed contained within it.
But with the uncertainty of when exactly the real estate market is going to recover, this is not a viable option for most.
Some Homeowners will be able to maintain the payments, not matter how much their interest rate increases.
A homeowner could also contact their bank and see if they have created any “new” programs to assist their many homeowners that are in the same situation. However, from what we have seen with the lending world, they have not.
Then the Short Sale might be a better option.
Don’t rule out Foreclosure or maybe Bankruptcy. Each needs to be discussed at length.
We need to sit down with you and yours to determine a plan of attack. Game Plans are not only for football. We need to help you develop a strategy that you and your family (if there is one), can deal with.
The information on the form below will help us start building your specific Game Plan. Fill out the form and press submit. We will work our magic and set up an appointment for you at our offices at RE/MAX. BE Safe..
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