I host a weekly radio show here in Phoenix, Arizona. I receive live call ins and calls outside the show. There are many people who are in trouble and they do not know who to call. So, I receive calls from people who need assistance because they are going into foreclosure, cannot afford the payments, upside down in their home, need a loan modification, going through divorce or just need some guidance when it comes to real estate investing. I have developed a group of wise professionals to assist me in all matters of real estate.

Well, I had a 71 year old female call me on Saturday and wanted me to call her back. I called her back Monday morning to see how I can help her. The informed me that she was on a fixed income only receiving $2213.34 per month. Her current mortgage was $1,323.65. Her daughter lost her job and moved back East to find work as a teacher. It left her paying the montly mortgage. This does not leave her enough money to take care of her basic needs after paying the mortgage. This woman called me because she hit her breaking point.

I explained the four options listed below to her:

  1. Call your lender: It is your duty as a consumer to alert the bank of your current situation. The best thing that they can do is work out a loan modification in order to keep you in the house. This will involve lowering your payments and at times eliminating some of the principal. Each case is handled on a case by case scenario.
  2. Short Sale-This is when the bank allows you to sell your house for less than what is owed on the mortgage. More lenders are starting to accept short sales to avoid foreclosing on the house. Banks are spending millions of dollars on foreclosing on the house. Plus, the house is vandalized when it is empty. It is better to do a short sale for all parties.
  3. Deed-in-lieu-This is where the bank takes over the deed in exchange for the payment. The homeowner voluntarily gives the deed back to the bank.
  4. Foreclosure-This is the last case scenario when steps 1-3 do not work for either party. The bank forecloses on the property to take back the house. The homeowner is asked to leave. Life moves on.

She informed me that her bank was unwilling to perform a loan modification because her income did not change. She told me that her husband had died which lowered her income. However, the performed a cash out refinance after her husband died to pay off $30,000 of debt. This put the mortgage in her name only. Her income has not changed and the bank is unwilling to modify her loan for that reason. I am having a loan modification expert look into her scenario.

I just wanted to give you an example that this real estate disaster hits all generations. It does not discriminate. If you are an older person, please feel free to contact us at Real Estate and Beyond to go over your options when you need assistance. We have a team of experts ready to assist you in real estate and mortgage situations.

Make the Call, Set the Plan, Do the Deal$

Make the Call, Set the Plan, Do the Deal$!

Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities.  The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona.  You can listent to past shows, or stream on-line.


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Comment balloon 7 commentsHarry F. D'Elia III • October 24 2009 07:58AM


Well, your title really grabbed me.

We are finding VERY few banks in Ann Arbor willing to modify loans, if so it is only for a month or two.

Then you have to go to short sale...so we just go there anyway.

Now this lady apparently needs to stay so hopefully something will work out.

I'm curious as to why they bank did a cash out refi, knowing her husband has passed.

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) over 10 years ago

A very good illustration. I se that with short sales hitting the 55+ communities here in Florida as well.

Posted by Gary L. Waters Broker Associate, Bucci Realty, Fifteen Years Experience in Brevard County (Bucci Realty, Inc.) over 10 years ago

There is a whole new industry being created for people 55+ that need short sale. Thanks for the input on this one.

Posted by Harry F. D'Elia III, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (RentVest) over 10 years ago

Thanks for sharing this information with us this morning. Have a great Sunday

Posted by Eric Villaverde (DoubleTree Home Inspection Services L.L.C.) over 10 years ago

I am always learning on each post. Thanks for sharing this morning

Posted by Katiejo Franks (Real Estate and Beyond, LLC) over 10 years ago

I always enjoy your posts. They are full of information. Have a great Sunday

Posted by Tim Green (Real Estate and Beyond LLC) over 10 years ago

I always enjoy your posts. They are full of information. Have a great Sunday

Posted by Stephanie D'Elia (Real Estate and Beyond LLC) over 10 years ago