New Service Allows Homeowners with Negative Equity to Strategically Foreclose on Their Mortgage and Rent Back the Home They Love

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A new service offered by Clean Slate Funding enables Americans with mortgages greater than the value of their principal residence to continue living in their home even after they strategically foreclose - and then re-purchase it at a sensible price.

We'll have full title and be mortgage free in 10 years. I feel like our whole future has been restored.

An estimated 15 million American households are deep underwater. Their homes are worth less than their mortgages – sometimes hundreds of thousands less. Many are making the painful decision to turn their keys over to the bank , bow their heads and walk away from their treasured homes and neighborhoods.

It's a tough thing to do - to leave the home you love and admit to friends and family you've blown the biggest investment of your life. But for the many who owe too much to refinance through traditional means, the only option has until now been throwing away a fortune in mortgage payments, often at interest rates much higher than the current national average and paying for equity that no longer exists.

But a new option offers homeowners carrying underwater mortgages another choice. By strategically defaulting with Clean Slate Funding, it's possible to stay in your home, and buy it back later at a lower price.

"We arrange for the client’s home to be purchase from the bank after foreclosure at fair market value," says Clean Slate president Jason Hilborn. "The home is then rented back to the original homeowner for close to what their previous total housing costs were. And at the end of the five year term, our client has the option to re-purchase their home at the predetermined price."

It’s a revolutionary, creative solution that makes financial sense, Hilborn says. "Our client gets to stay in the home they love, they don't have to move or ever tell anyone they've strategically defaulted, and they can rid themselves a crippling debt load.”

Unfortunately, Clean Slate's solution is not available to every underwater homeowner. If the homeowner is in financial distress due to job loss, bankruptcy, etc. they are ineligible to apply. This service is reserved strictly for those with negative equity who have excellent income and excellent past repayment history. It's a manageable way out of a predicament that could otherwise take decades and cost hundreds of thousands of dollars to correct.

"Our situation looked hopeless," says J. Morris, 39, of Bakersfield, CA. At the peak of the housing boom in 2006, he and his wife bought a beautifully restored two-storey home in the neighborhood where he grew up. The purchase price was $360,000.

"The last assessment we got was $180,000 for our home," Mr. Morris says. "That's negative equity of more than 180 grand, and it would have taken until I'm 75 to pay it off. It made me sick thinking about it. Two of our three kids are in school and have a great group of friends in the area. The idea of just walking away broke our hearts and crushed our pride, but we were bracing for it. “

Then, while researching their options, the couple discovered Clean Slate Funding. They applied online the same night, and were soon approved. A funder bought their house from the bank, and the Morris’ became renters with a five-year lease, the monthly rent equal to their previous total housing costs of $1,950 a month. When the term ends, they will buy back their home for $196,000, enabling them to own it outright decades sooner than they ever thought possible.

"We'll have full title, and be mortgage-free in just ten years," says Mrs. Morris with a bright smile. "I feel like our whole future has been restored."

Clean Slate Funding currently works only with Americans with principal residences in California, Nevada, Florida and Arizona. For more information or to apply, visit or call 1-877-305-8499.



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