MHA MOD...how much principal can be deferred? - Loan Modification Forum

luvmyhorse · 08-04-2009, 09:38 AM

My gross income is too low, unless they deferred 50 % of my principal. I heard that they will defer up to 30%. Does anyone really know? Is it worth trying to find more income and not claim any deductions on next years taxes and apply for the mod in Jan or Feb?

Evan Bedard · 08-04-2009, 10:17 AM

Hi luvmyhorse welcome and thank you for joining.

As far as getting a principle reduction from CW/BofA is very unlikely. Over the past couple years I have only seend a handful of people achieve a principle reduction...

luvmyhorse · 08-04-2009, 10:27 AM

Do you work for BOA? Where did you get your info?
Thanks.

Evan Bedard · 08-04-2009, 10:45 AM

No I do not work for BofA. That is from my personal experience and I have seen hundreds of modifications take place and only maybe a couple achieved a principle reduction, even though the majority of homeowners are underwater and could definetely use the decrease in total amount.

luvmyhorse · 08-04-2009, 10:56 AM

I guess you have seen them through this website? What kind of borrower do you think they are approving?

ama125 · 08-04-2009, 12:11 PM

Quote:

Originally Posted by Evan Bedard

Hi luvmyhorse welcome and thank you for joining.

As far as getting a principle reduction from CW/BofA is very unlikely. Over the past couple years I have only seend a handful of people achieve a principle reduction...

Hi Evan, luvmyhorse was posing the question regarding principal forbearance (ie deferment), not principal reduction.

To answer the question of how much is allowed, this is driven by the NPV test. If your test is positive, then your loan gets modified. If it is negative, then the servicer may elect to modify your loan but there is a limit to how much principal can be deferred (see here for a detailed explanation as to how I understand it: PLEASE ONLY POST - Articles, Official Letters, Testimony, Rules and Regs. Moe - perhaps a Sticky is in order ?).

08-04-2009, 09:38 AM	#1 (permalink)
luvmyhorse Senior Member Join Date: Jul 2009 Posts: 58 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	MHA MOD...how much principal can be deferred? My gross income is too low, unless they deferred 50 % of my principal. I heard that they will defer up to 30%. Does anyone really know? Is it worth trying to find more income and not claim any deductions on next years taxes and apply for the mod in Jan or Feb?

08-04-2009, 10:17 AM	#2 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MHA MOD...how much principal can be deferred? Hi luvmyhorse welcome and thank you for joining. As far as getting a principle reduction from CW/BofA is very unlikely. Over the past couple years I have only seend a handful of people achieve a principle reduction... __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

08-04-2009, 10:27 AM	#3 (permalink)
luvmyhorse Senior Member Join Date: Jul 2009 Posts: 58 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MHA MOD...how much principal can be deferred? Do you work for BOA? Where did you get your info? Thanks.

08-04-2009, 10:45 AM	#4 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MHA MOD...how much principal can be deferred? No I do not work for BofA. That is from my personal experience and I have seen hundreds of modifications take place and only maybe a couple achieved a principle reduction, even though the majority of homeowners are underwater and could definetely use the decrease in total amount. __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

08-04-2009, 10:56 AM	#5 (permalink)
luvmyhorse Senior Member Join Date: Jul 2009 Posts: 58 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: MHA MOD...how much principal can be deferred? I guess you have seen them through this website? What kind of borrower do you think they are approving?

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