One of past clients who we sold a home in 2005 wanted to buy a newer, cheaper home and loose his current home.

Here is his scenario:

He purchased a 3 Bed / 1 bath home purchased in Los Angeles in July 2005 for $330,000.

He then used the services of another lender and refinanced his home in Nov 2006, cashed out some money and ended up getting screw up by the lender by being offered a negative amortization loan (The Famous “Pick-A-Payment-Loan”).

He borrowed $380,000 in Nov 2006.

He currently owes  $458,500 due to the negative amortization and his home value is $260,000.

He is $198,500 in the hole wants to loose his home but before he does, he wants to buy another home.

Lenders see this “buy and bail” scheme as fraudulent and borrowers could be sued by the lender if the lender can show that the homeowner committed fraud by misrepresenting themselves on their loan application.

Even real estate professionals such as  agents or brokers could face federal charges by the FBI if they knowingly collaborate with anyone to acquire a new home under false pretense.

What solution is available to homeowners with negative amortization loans?

There is always the option of “Loan Modification”

Congress recently passed a housing rescue bill aimed at sparing 400,000 struggling homeowners from foreclosure.

The measure lets homeowners who cannot afford their monthly payments refinance into more affordable government-backed loans rather than losing their homes.

If you would like detail information about how to modify your existing loan even if you are behind in your payments and have no equity whatsoever, please contact us by clicking on the following link: www.RealtorSpeaks.com/contact-us  and we will show you how you can modify your existing loan to save your home.

We have gather the Top 10 Repairs you can do to your home that would increase saleability and when done right, might net you a couple of grand at the end of the sale of of your home:

1. Fresh paint is one of the low-cost, high-return repairs you do can do to a your home. Fresh paint makes everything look cleaner and brighter. When considering repainting a home, keep in mind to use neutral colors — NOT white because it might not appeal to most buyers.

2. Install new carpet or new floor covering. If you have hardwood floors, it would pay off to simply re-finish it. If the carpet needs to be replaced, then you might want to replace it by a neutral color carpet like light tan. And, if you have ceramic, simply replace the cracked or chipped tiles. It would be too expensive to replace the whole floor and most likely the bank will not approve it either.

3. Replace or install new fixtures in Kitchen and Bathrooms. A house  with quality fixtures and finishes will sell much faster than a house with moldy grouting and ancient fixtures.

4. Resurface or re-paint cabinets. There is no need of changing all of the cabinets if there is no need to do it. A simply resurface will make them look like new.

5. Install new toilets only if the previous owner took the toilets as a souvenir.

6. Re-patch the dents and holes in the drywall.

7. Repair or replacing window screens.

8. Repairing the grout in the bathroom or kitchen make them look brand new.

9. Kick up the curb appeal. You only have one time for a first impression.  Many sales are lost because the curb appeal is not appealing enough to the buyer.

10. If the grass looks dead, don’t replace it…Simply paint it green so that it looks alive.