Just curious, has anyone gotten a Principal Reduction via Countywide?

[sbas2k]

I know that it isn't happenning as that is really my only goal, wanted to see if anyone has ever had one through Countrywide, thanks.

[katita]

I was also about to open a new treath about that. So what is the exit for those who are way too far under wather. I imagine you also are on this poition. I owe 740,000 two loans, and my property value is 340,000

Moe do you have any advise for us? Also with reduced income and hardship. What do you think is fair to us? So we can ask CW to help and not go for short sale or forclousure.

Thanks

[pdsfoley]

BAC/CW is not doing principal reductions..........who knows if they ever will.......

[pwrought]

They will never give us principal reductions because most of the loans have an insurance to back them up so they foreclose your home and double their profits

[laurap]

in my case, they are ready to go for short sale. why can't they agree for me to buy the same for that price if they are willing to sell it to someone else for that price? I don't understand.

[pdsfoley]

Laurap.....seems so easy doesn't it??? They know something we don't. With the AG settlement that was supposed to take effect Dec 1 2008...there was a stipulation in there stating that....but it NEVER happened...

[sbas2k]

Katita, i'm in the same boat as you, owe $645,000 in 2 loans, my property is worth about $325k. I have already accepted the fact that my home will be foreclosed, it just doesn't make good business sense. Just trying to hang on as long as possible. I don't blame anyone as it was my decision to buy this house. From everything i've read it is more profitable with the insurance plus for tax purposes for the banks to foreclose rather than reduce principals. Was just wondering if someone found some sort of loophole or strategy.

[kura52]

This is my first post. (so glad i found loansafe....awesome info) i am currently in a pay option arm loan. also in a chapter 13 repayment plan, 3 years and it is half over. I've been TRYING to get CW/BOA to acknowledge the AG settlement and what their supposed responsibility is ......I'm not getting far. But I am also not giving up. I am current on my mortgage and dont want to become behind or order for them to work with me. I know this is so many people's story. I just dont understand why or how, they are getting away with this? why aren't they being held accountable for their deceptive lending practices? the pay option arm sounded too good to be true at the time we took it out. and it was! I thought I was smarter than that...but it was back in the fall of 06......who knew what was coming???? Thanks for letting me vent. I'll keep plugging away......

[rozuki]

Kura52,

Welcome.....it's difficult to work with CW/BoA by yourself...many have tried.....very few, if any, are successful in getting a good fixed rate for the life of the loan.

I tried and tried and wound up going with NACA once I found out about it here....best thing that could of happened in my case!

Rozuki~NACA approved loan mod 2% fixed for life of loan

[Larry2630]

i am in the same boat as you guys. we owe 700k with 2 loans both with cw/bofa. just received our property assessment and it is now worth 316k. monthly payment is $3830 for both loans (interest of 6.125% & 8.25% respectively) - this is interest only payment excluding taxes & insurance - $4605 in total. when we attended naca's 2-hr presentation, the naca speaker said that their strategy is to ask for interest reduction and if still not affordable for the borrower, then they will ultimately ask for principal reduction. just wondering if naca was successful with this strategy. naca's proposal for our future payment is $3100 including principal, interest, taxes, ins. this will save us $1500/mo and can't figure how this would work without principal reduction. per naca, cw/bofa liked their proposal but have not approved it yet.

[pdsfoley]

NACA will probably try for principal forbearance...that is BAC/CW's way of principal reduction...you still owe the money...its like a silent 2nd....it sits there until you sell or refi

[dthom]

I don't think they will, although our NACA proposal was for a reduction of principal, not a forebearance. Doesn't the forebearance basically strip you of any future equity? Kind like renting your own home, because if you do have or want to sell 10 years down the road, you most likely would not get anything from the sale at all.
Anyway, I would take either one at this point just to be able to keep my home.

[NeedHelpwCW]

Has anyone gotton a Forebearance? If so, is it at zero interest? A balloon payment at the end of the loan (i.e. 30 years)? Or is interest tacked on to the amount?

How does it work for the Making Home Affordable, when forebearance is necessary for the 31% mark? Will that amount accrue interest as well?

[pdsfoley]

Thats why some of us are on "hold"....they don't know how this is gonna work yet....Ughhhhhhhhhh

[str8gator]

Originally Posted by laurap

in my case, they are ready to go for short sale. why can't they agree for me to buy the same for that price if they are willing to sell it to someone else for that price? I don't understand.

I have the same question and have asked them the same thing. Their response "it may seem like a good option for you" .

[kura52]

Thanks for the welcome rozuki. May I ask a few questions? Once I contact NACA and they confirm they will start the process, I assume at some point they will tell me to stop making payments? Is it mandatory that I stop? Since my chapter 13 started a year and a half ago I have worked so so so hard to build up my fico scores. They are now close to 700. That would be really hard to take for my score to drop with late mortgage payments. Actually, I just thought of something.....I believe in my chapter 13 I am required to keep current on my mortgage per the bankruptcy court! So perhaps contacting NACA while I am in bankruptcy would not be an option? Unless they are ok with me continuing to make my mortgage payment. I supposed if I have to, I could wait to contact them until my bankruptcy is through. I can afford my payment I believe until then....My whole goal is to get out of this dreaded pay option arm loan.......any thoughts are appreciated....thanks so much

[Cassietw]

Kura52,

Naca has always instructed me to make my payment if I could. They have never said not to. Also I know others stayed current and went through NACA and got great mods.

I would definitely give NACA a shot. They will tell you what they can do for you.

Good Luck!

[kura52]

Cassietw,

thanks so much for the quick reply. It is awesome info. I currently pay my mortgage through my checking account on line bill pay. Can I ask is your work out/mod completed now with naca? did your loan / account# with your lender (is it CW?) stay the same, or change? I hope these questions aren't piddly (is that a word?)
also, I realize naca will probably give me a lot of info and guidance after I contact them...I am just taking advantage of this terrific forum!

[Cassietw]

Kura52,

I am still working on my Mod. Still with NACA, but I feel it is our best chance. We had CW and of course is now BofA. I believe everyone's account numbers stay the same. I haven't seen any posts where anything like that had changed.

A good place to research these questions would be in the success stories!

I wish you the best and keep us posted of your progress....

I am signing out for the night...

Cassie

[helpsavemyhome]

Originally Posted by pdsfoley

Thats why some of us are on "hold"....they don't know how this is gonna work yet....Ughhhhhhhhhh

pdsfoley, we are currently "on hold" while BofA decides what to do regarding a principal forbearance. They did make us a "conditional offer" where three payments were very reasonable but then the fourth payment would've been $23,000. I explained to them that if we had access to that much money, we wouldn't be asking for help to begin with. It was interesting because when BofA submitted the offer to NACA, they LEFT OUT the $23,000 part of it and made it seem like a wonderful offer...but, it was clearly stated in the docs we received.

[cobra]

Kura;

Welcome! In a nut shell I was 7 months behind($17,000) and about to be foreclosed.
I tried to work with CW since Oct. of 08. Honestly it was like trying to push gravy with a stick!!! Every time I called them their information changed. So...I went with NACA. Let me be clear here. NACA is over burdened also due the high demand for their services. You will still be doing a lot of work on your own. However the deal NACA can get is the best I've seen on this forum. I vote NACA.

Keep us posted,

Cobra...NACA and this forum helped me savr my home.