Is The Debt Service On Your Mortgage Debt Draining Your Bank Account?
Is Your Investment Property Paying You,
Or Are You Just Paying Your Investment Property Mortgage To Keep It?
Whether you’re a landlord renting out just one house or a landlord of a huge apartment building or big shopping mall, you have the same problem when mortgage rates increase and property values fall.
- First the profit margin gets squeezed.
- Then the cash flow goes from positive to break even.
- Then the cash flow goes negative.
However you look at it, since you want to make a profit, you’re under the category of a commercial mortgage. Even with only one property that’s non-owner occupied, you don’t get the same rates as home owners on a mortgage loan. Essentially you have a residential commercial mortgage. And you originally bought the property to create a cash flow as an investment. But now it’s become a liability.
Income Must Exceed Expenses
To make the whole thing work you know that the monthly income needs to be higher than the monthly expenses. And what’s the biggest monthly expense? It’s the debt service, the mortgage payment you make on your commercial mortgage.
The All Popular ARM
If you got into the property with one of the all popular adjustable rate mortgages (ARMs), then you know that the interest rate will increase. But the plan was to let the property appreciate, and you could refinance and get a better mortgage loan in a couple of years, or at least before the ARM resets.
The Economic Crisis Killed Your Plan
Then something happened to that plan. The economy took a nose dive, and with it went the property values. So now you’re stuck with a mortgage debt that’s bigger than the value of the property.
The monthly payments going out keep getting bigger and bigger, and they’re eating up the monthly payments coming in. Now you’re having to subsidize your investment.
Instead Of Getting Paid You Have To Pay
Instead of getting paid each month you’re having to pay each month. The cute little puppy has become a fire breathing dragon that threatens to devour your entire estate and take you down with it.
So what’s next? Do you default on the mortgage loan and let the bank foreclose on the property? Where does that leave the tenants? How does that look on your record?
How about a refinance?
How can you get a new mortgage loan that will pay off the old one, when the mortgage debt is now larger than the current fair market value (FMV) of the property? You know that the banks will use that FMV to judge whether you’re worthy to get a new loan, and the value just isn’t there.
The Plan Was For Then, And This Is Now
The plan of getting into the property cheaply and being able to count on appreciation to carry you though just doesn’t work any more. The property values have decreased, and the banks aren’t lending much any more. So the interest rates go up, and the tenant’s lease payments remain the same. You can’t change that until the lease agreement is up. You might have to charge more in rent payments than comparable properties, and lose the tenants entirely.
So what can you do now?
Well … There is another option. Our Mortgage Debt Reset Program can allow you to eliminate the old mortgage and get you back to 100% financing at the current FMV.
In addition, our Mortgage Debt Reset Program can allow you to have monthly mortgage payments of about half of what you’re paying now. Just think of it. What would that do to your bottom line? You could turn a losing property into a profitable property again. You could tame that dragon.
With our Mortgage Debt Reset Program it’s possible
- To remove the old underwater mortgage debt.
- To obtain 100% financing right now with no bank qualifying.
- To drastically reduce your monthly mortgage payments.
- To match your mortgage debt to the FMV of your property.
- To turn a negative monthly cash flow into a positive monthly cash flow.
- To put you in a position to be able to sell the property at a gain instead of a loss.
We know that our Mortgage Debt Reset Program isn’t for everyone, and you’ll have to qualify to be accepted.
But, it’s easy to find out whether you and your property can qualify.
Just fill in your name and email address in the places indicated below, and then click the “How Can I Qualify?” button. That's all it takes to find out.
We’ll send you an email explaining just how you can participate in this Mortgage Debt Reset Program and turn a losing property into a winning property.
Please Note: Our Mortgage Debt Reset Program is only available for properties within the United States and only for mortgages held within the U.S. Banking System. It is not available for other countries or for mortgages held by private lenders.