Take advantage of Obama’s “America Built To last” plan.  It calls to action any homeowner to simply refinance their home. Since all FHA & VA mortgages are protected by the government, the negative equity can be absorbed by the government. It is not a loan modification. This is only available through a new loan with a different lender. So you must refinance. How does it work? The new bank refinances at the current value amount. The old lender is bailed out of the remaining negative balance, by complying with Obama’s Broad Based Refinance Plan.  Read it directly from the White House press office.   You will be required to homestead the property for 24months.  But, if your heart is set on moving sooner, simply let someone else assume your financing.  The person who assumes the sellers financing therefore inherits all of your efforts. This can be done before you assume a mortgage or after you assume a mortgage. The program is focused on responsible homeowners trying to stay in their homes. Obama says that homeowners who do this will save $3000 a year.  But 70% of homeowners are not aware of it.  Below are the main requirements:

• Borrowers will need to have been current on their loan for the past 6 months and have missed no more than one payment in the 6 months prior.

• They meet a minimum credit score. Borrowers must have a current FICO score of 580 to be eligible. Approximately 9 in 10 borrowers have a credit score adequate to meet that requirement.

• They have a loan that is no larger than the current FHA conforming loan limits in their area: Currently, FHA limits vary geographically with the median area home price – set at $271,050 in lowest cost areas and as high as $729,750 in the highest cost areas

• The loan they are refinancing is for a single family, owner-occupied principal residence. 

It’s the new bail out plan. This time its initiated by the consumer.  Yeah!