CNC Mortgage Blog

· If a homeowner is struggling with his mortgage payments (just asks for help, but this opens a big faucet) offer him a first mortgage for 100% of the newly appraised value of the property at current market rates on a 30 year mortgage. His total debt to income ratio must be below 60% and have at least $500 per month of available income per member of the household. If a person does not qualify under this condition then let the house go into foreclosure, he will never be able to make his payments.

· Any difference between the original loan and the new loan plus new closing costs will establish a second mortgage at 0% with $0 payments. When the house is sold , at least one half of the profit on the sale would be directed to reduce the second mortgage. The second mortgage would remain with the house until it is paid off completely.

· If the house is refinanced with a cash out for home improvements the new combined mortgages can not be greater than the projected appraised value.

· Many homes will need repairs. Most banks have discontinued construction loans. Some loan will be needed so I would suggest a loan escrowed at a title company with draws allowed after an inspection by an appraiser.

· The fastest way to irrigate these loans in a community is through mortgage brokers who have the flexibility and man power to work with the banks and the borrowers.