Is There Hope for Underwater Homeowners?

If you have never heard of the Value Gap Refinance, you probably will. The Value Gap Refinance program means that there is a guarantor making up the difference between the existing mortgage and the present value of the home. Sound like a dream come true? It will help those who are underwater but it certainly doesn’t change the economy….at least not at this moment.


The difference would need to be established by getting an appraisal of course, that way it is clear what the value is based on the current market. The homeowner would then obtain a new loan at 100 percent of the property’s value and at the current rates.

The homeowner is responsible for paying off the balance, but not the dollar figure that creates that gap. When the home is eventually resold to another buyer down the road, the government will pay the difference between the final selling price and the original loan balance. It’s a program that has been a long time coming, and helping people is what it’s all about.

-Mayer Dallal

Looking for a Deal?

Those who are looking for a deal on a home, can find one by buying a short sale, but buying a short sale doesn’t happen fast. Short sales don’t mean that they are short on time, but it simply means that the home is being sold for less than what is owed, coming up “short” on the balance.




Buying a short sale can take anywhere from 4 to 6 months to close, so be prepared. If this home is on the MLS, you can ask your agent to find out if this home is a short sale. The reason you’ll want to tune into this is because you may find a home that appears to be much less than the neighborhood calls for. Your agent can get this information for you, and that way you will have an idea of what offer you should really be making if you like this home.



Buying a short sale has its benefits, but just be prepared to wait awhile. If you aren’t in a hurry, then buying a short sale may be for you. You can get more information, by going to http://www.inlandempireshortsaleresource.com/.

-Mayer Dallal

What's Up With Short Sale Fraud?

It's simply criminal that second lien holders are asking for money outside of the closing in order to make up for some of the money they aren't getting.  Second lien holders usually get a specified amount that is negotiated out of the proceeds with the first mortgage holder.  However, the second lien holder is always last on the list to get the benefits of anything.

However, it doesn't mean that they should prompt actions that are illegal.  RESPA says it's illegal and so do I. I know how hard I work for my clients, and this just outrages me to no end.  The only thing we can do is work towards a better process and hold people accountable.  I know I do!

-Mayer Dallal