Friday, January 22, 2010
by Broderick Perkins
© 2010 DeadlineNews.Com
Unauthorized use of this story is a copyright violation -- a federal crime
Deadline Newsroom - You've got an "upside down mortgage," owing more than your home is worth. With a 6 percent interest rate on your $400,000 mortgage, the $2,400 monthly payment is brutal. You can barely make ends meet.
The bank agrees to defer $75,000 of the debt, which you'll pay back when you sell your home. The lender also slashes your interest rate to 3.75 percent. The new $1,500 monthly payment on the $325,000 balance puts a $1,000 wad in your pocket every month. You see your mortgage begin to surface, and the headaches disappear.
This is the kind of scenario government leaders would like to see played out more often for struggling homeowners, especially when a loan modification without a principal reduction could force them to simply walk away from their homes.
Get the full story here: Turning 'Upside Down Mortgages' Right Side Up
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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.
Perkins is also the first Examiner to cover three beats for the Examiner.com news service:
National Offbeat News Examiner
National Consumer News Examiner
National Real Estate Examiner
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