{"id":456,"date":"2014-08-27T08:42:52","date_gmt":"2014-08-27T08:42:52","guid":{"rendered":"http:\/\/blog.topbev.com\/?p=456"},"modified":"2014-08-27T08:42:52","modified_gmt":"2014-08-27T08:42:52","slug":"have-a-customer-with-an-underwater-mortgage-who-wants-to-move-up-one-solution-i-used-has-worked-out-to-everyones-satisfaction","status":"publish","type":"post","link":"https:\/\/blog.topbev.com\/?p=456","title":{"rendered":"Have a Customer with an Underwater Mortgage who Wants to Move Up? One solution I used has worked out to everyone’s satisfaction"},"content":{"rendered":"

We all know how many mortgages are currently “under water” By “under water”, I mean than once the property is sold and selling expenses\u00a0 and\u00a0comissions paid, there is no money left over for a downpayment on the “next”home. The mortgage and property taxes are current; the property just has no equity.<\/p>\n

Here is a solution I recently\u00a0developed which worked out well for a client of mine. The client’s parents had excellent credit and had saved up some money. I caused them to purchase, in their names, the property which their daughter had identified as more suitable for her growing family. The daughter entered into a lease with her parents, with market rental rates. She has an option to buyer the bigger home from her parents at a formula price.\u00a0There is a provision in the lease that every rental payment has a “rent-to-own” coefficient, so the daughter is building up equity in the home she now lives in every time she\u00a0makes a monthly rental payment United States<\/a>.<\/p>\n

The “under water” residence is now being rented to third parties. Evenutally, when the real estate market comes back, the daughter can sell this home and come out whole. In the meantime, she is receiving income to defray her mortgage and tax expense, whicile she is paying Mom and Dad for the new, more spacious home.<\/p>\n

Everybody wins as long as the numbers work out, which in this case, they do. I am not saying that this approach is the “be-all” or the “end-all”. It is, however, a creative solution which has given my clients’ parents a chance to help their daughter without a huge financial sacrifice. There are variations to this theme; perhaps, you can suggest some you have used.<\/p>\n

We are not done with this “down” real estate market whatever some of you suggest. There are pockets of progress; there are pockets of stagnation. Creative thinking can many time save the day. We all need to practice it.<\/p>\n","protected":false},"excerpt":{"rendered":"

We all know how many mortgages are currently “under water” By “under water”, I mean than once the property is sold and selling expenses\u00a0 and\u00a0comissions paid, there is no money left over for a downpayment on the “next”home. The mortgage and property taxes are current; the property just has no equity. Here is a solution … Continue reading Have a Customer with an Underwater Mortgage who Wants to Move Up? One solution I used has worked out to everyone’s satisfaction<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[29],"tags":[312,313,314],"class_list":["post-456","post","type-post","status-publish","format-standard","hentry","category-mortgages","tag-lease-to-own","tag-parental-assistance","tag-under-water-mortgage"],"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":907,"url":"https:\/\/blog.topbev.com\/?p=907","url_meta":{"origin":456,"position":0},"title":"Bank of America\u2019s Exclusive “Deed in Lieu” Pilot Program","date":"March 27, 2012","format":false,"excerpt":"Bank of America launched an invitation-only \"deed-in-lieu\" pilot program. This program will permit struggling homeowners to convey the deed to their property to Bank of America in exchange for a lease to remain in their home.","rel":"","context":"In "Estate Planning"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":887,"url":"https:\/\/blog.topbev.com\/?p=887","url_meta":{"origin":456,"position":1},"title":"Behind in Your Mortgage: A Few Principles to Guide You","date":"February 29, 2012","format":false,"excerpt":"There are some rather complicated areas involving who is in front of whom in terms of real estate transactions, and you need to know these, especially if your mortgage payments are in arrears.","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":280,"url":"https:\/\/blog.topbev.com\/?p=280","url_meta":{"origin":456,"position":2},"title":"Refinancing Your Present Mortgage–Make sure that the Lenders, and Closing Agents, are Financially Able to Perform","date":"July 2, 2010","format":false,"excerpt":"In today's edition of the Boston HERALD, there is an article about a Borrower in Illinois, who recently refinanced his mortgage with a mortgage lender. The check which the refinancing Mortgage Lender sent to the person's then mortgage lender \"bounced\", and the former mortgage lender is now foreclosing on the\u2026","rel":"","context":"In "Mortgages"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":854,"url":"https:\/\/blog.topbev.com\/?p=854","url_meta":{"origin":456,"position":3},"title":"Do Lower Mortgage Defaults Signal a Recovery?","date":"February 17, 2011","format":false,"excerpt":"It was reported today by the Mortgage Bankers Association that fewer Americans are falling behind on their mortgage payments. This has nothing to do with the foreclosure \"robo-signing\" mess, because the number they were looking at was the first indication of a potential foreclosure, the number of borrowers that had\u2026","rel":"","context":"In "Mortgages"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":886,"url":"https:\/\/blog.topbev.com\/?p=886","url_meta":{"origin":456,"position":4},"title":"Reverse Mortgages Revisited","date":"February 29, 2012","format":false,"excerpt":"There is probably more misinformation in existence about Reverse Mortgages than any other mortgage product in history..","rel":"","context":"In "closing"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":296,"url":"https:\/\/blog.topbev.com\/?p=296","url_meta":{"origin":456,"position":5},"title":"Looking to Help Your Customer Obtain Mortgage Financing–Don’t look Too Far from Home","date":"July 7, 2010","format":false,"excerpt":"Yesterday,\u00a0I was in a meeting with the Sales Manager of a local thrift institution. Her Bank portfolios all of their adjustable rate loans and all their jumbo product. They sell conforming product in the secondary market. This person informed me that on one day last week, she received an aggregate\u2026","rel":"","context":"In "Mortgages"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=456"}],"version-history":[{"count":2,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/456\/revisions"}],"predecessor-version":[{"id":960,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=\/wp\/v2\/posts\/456\/revisions\/960"}],"wp:attachment":[{"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.topbev.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}