Mortgage Relief May Be Easier Than You Realize
Today, I want to have a conversation about mortgages… Specifically, I want to talk about the options that are currently available to homeowners who may find themselves in challenging situations.
As I talk to a number of our current and prospective clients, I continue to see a familiar good news / bad news scenario:
The good news is that the local real estate market is heating up, driving home prices higher and giving homeowners more options with their property. This new surge in demand for residential real estate comes from both organic and institutional buyers.
Organic buyers are essentially individual purchasers who are buying homes for the purpose of occupying the properties. This is the traditional idea of a home buyer. Institutional buyers, on the other hand, are buying properties up for the purpose of either renting or reselling the homes for a profit. In particular, the private equity company Blackstone Group is active in the Atlanta market, plowing hundreds of millions into local home purchases.
The bad news is that many local homeowners are finding themselves in a difficult situation. This can be a result of a change in income since the home purchase, a change in interest rates (as teaser rates expire and payments balloon), or a general change in life as family dynamics evolve.
More and more, we are seeing homeowners in a spot where an adjustment to their mortgage would make a big difference in the financial and life balance picture…
Homeowners Have More Options Than They May Realize
When it comes to challenging mortgage situations, many homeowners have a great deal more flexibility than they have had in the past. This is due both to new government programs, and to an increased willingness to lend on the part of the banks.
A number of government programs have been created to help homeowners who have adjustable-rate mortgages that are in the process of resetting to higher rates. Many mortgage payers don’t even realize that their rates are increasing until they receive a notification of payment change from the mortgage company.
Other programs focus on homeowners who are in a hardship situation. This can result from a change in employment, a medical or disability situation, or other life issues that arise and cause difficulty for homeowners.
Finally, with property prices increasing, the banks are now much more willing to consider a mortgage adjustment because the underlying property now has value and can be sold in the event of a foreclosure. When banks see valuable collateral, they are much more willing to set up an attractive mortgage arrangement.
My point here is that as a homeowner, you are no longer arbitrarily stuck with your current mortgage. There are many ways to work out a new solution, and at Ashford Advisors, we can help find the perfect program to meet your mortgage needs.
Rental Property Owners Now Have Flexibility Too
As a result of the housing boom (and subsequent bust) many individuals have found themselves in the position of owning extra homes that are being rented out. I’ve seen a number of families that moved to larger homes during the housing bubble, and simply kept their old house for the purpose of renting and creating additional income.
Of course there are a number of individual real estate investors who purchased multiple homes with the intent to flip them – only to be stuck underwater when the real estate tide turned.
With the tremendous amount of buying pressure now lifting real estate values in the Atlanta area, investors who have been stuck with properties now have options as well…
The low interest rates and higher collateral prices can now be a help to investors with mortgage needs. Even though investment loans typically carry a higher rate of interest than mortgages for homes that are lived in, there are a number of banks who will now offer competitive rates for investment properties that can be rented.
This type of mortgage arrangement could be helpful if your investment home needs some remodeling or upkeep. And some investors are able to re-negotiate loans, taking out some equity for repairs, and then get the home into great shape for selling and exiting their investment with a profit.
Setting Up Meetings To Discuss Opportunities
Over the next few weeks, I’ll be scheduling appointments with homeowners and residential real estate investors to discuss mortgage options. If you are in the position of needing some help with your mortgage – or you just want to check into where your mortgage stands, when it resets, or what the terms are – I hope you will call me.
Given the resources that we have at Ashford Advisors, and the network of contacts we have developed in the Atlanta real estate market, I’m sure that we can help with your situation. You may be able to free up additional cash, rid yourself of an unwanted investment, or lower your monthly payments.
It would be my pleasure to help you and your family, and I look forward to sitting down with you. Please give my office a call to schedule your appointment today!
Wishing you every success,
Matt
Matthew J. Riedemann
Founder, President, & Managing Director
Ashford Capital Partners, Ashford Advisors