A few updates.....
I called PHH Mortgage to clarify the meaning of "Priciple Curtailment Modification" and it turns out my original thoughts were correct, this is not a forebearance and it is most definitely not the program I was looking for.... Apparently the letter they sent me was a mistake. That letter was meant for someone who wants to make a large payment (20% or more) toward the principle to bring down the principle balance, then the loan is re-amortized with the new balance thus reducing the monthly payment. This time the loss mitigation rep I talked to was on the ball and he faxed me the correct Loan Modification Application which I am going to turn in tomorrow for 2 of the loans I have with PHH Mortgage for two of my rentals.
For a week and a half, I've been working with an agent at Mutual of Omaha Bank (for the FDIC) who took over 4 of my loans (2 rental properties) from First National Bank of Arizona. One of the things I was asked to do was to write a letter promising that every month, I will pay these 4 loans before any of the other rental mortgages. Strange, but understandable request....I wonder if anyone else was asked to do this by other banks??? So today she finished all of my paperwork, verified income and expenses/credit report and submitted my file to the FDIC for approval. I should have an answer from her in 1 to 2 weeks. Communication with Mutual of Omaha Bank has been EXCELLENT and the process was very smooth and timely. I wish all the other lenders were this easy to deal with! I have a good feeling about this modification request because I heard her say under her breath, "these are very good terms" and I'm quite certain she was not talking about my current terms. Today I have a smile on my face...I hope it is still there in 1 to 2 weeks time....