GLOZAL Capital is committed to HELP underwater homeowners who have negative equity in their homes – owing more than their property is worth and who cannot qualify under the Government programs HARP or HAMP. GLOZAL Capital targets homeowners who are underwater and unable to refinance because of a lack of equity in the property. In order to qualify for our HELP Program, the homeowner must be current on their mortgage and have fair to excellent credit.
Approximately 25% of all homeowners have an underwater mortgage and that figure is expected to almost double in the next few years. An underwater mortgage simply means that you owe more on the mortgage than the market value of the property.
According to a new report from CoreLogic, 11.1 million or 22.8 percent of all residential properties in the U.S. with a mortgage were in negative equity at the end of the fourth quarter of 2011, compared to 22.1 percent at the end of September 2011. Add another 2.5 million borrowers who had less than 5 percent equity in their homes and 27.8 percent of homes are either underwater or in danger of becoming so in the event of further price declines. "The high level of negativity and the inability to pay is the 'double trigger' of default and the reason we have such a significant foreclosure pipeline," said CoreLogic Chief Economist Mark Fleming. The economic recovery will increase the ability of homeowners to pay their mortgages, but negative equity will take longer to improve, so "if there is a hiccup in the economic recovery, it could mean a rise in foreclosures."
Our Homeowner Equity Loan Program (HELP) will allow the homeowner to refinance his current mortgage with one of our lenders at current market value. Due to the historic low interest rates, the homeowner will save in interest payments and may qualify for a Fannie, Freddie or FHA loan.
HELP was designed to assist the homeowners to refinance into more affordable, more stable FHA-insured mortgage if the home is currently worth significantly less than the homeowner owes on it. Once the homeowner has been approved by our pool of lenders, the homeowner will owe no more than 100% of their home’s current value and thus, has eliminated the negative (underwater) equity in his home.
Most of the underwater homeowners have a loan to value (LTV) of 120% or greater and the target should be 100% LTV or below. With HELP, the homeowner will have a significant principal reduction through the program bringing it below or equal to 100% LTV.
Here is how our HELP Program works:
So no matter what you owe in comparison to what your home is worth, you can still take advantage of historically low rates!
The homeowner can select from a pool of participating lenders. With today’s historic low mortgage rates, HELP will safe the homeowner thousands of dollars in interest payments alone. After being approved for a new loan, GLOZAL Capital will enter into an agreement with the homeowner to start negotiating and obtaining approval from the current lender to acquire the underlying note.
Once GLOZAL Capital has acquired the note from the current lender, the principal balance is reduced through a loan modification process and the homeowner will be able to refinance his/her current mortgage with our new lender, resulting in reducing his/her principal balance by up to 60% and saving the homeowner hundreds or thousands of dollars in monthly payments. In addition, the homeowner can keep his/her home or sell it at breakeven or for a profit in the future.
Principal Loan Reduction through HELP:
Current Loan Balance $1,000,000
Current montly payment @ 6.5% p.a. $ 5,416
Current Market Value $ 600,000
Negative Equity ($ 400,000)
Principal Reduction by GLOZAL Capital: $ 400,000