Modification # 2...what to expect?

[shannonek]

Hello,

I received a mod in March/08 with the help of this site. I was success story #26 and was able to get it done in 6 weeks on my own! (no late payment) I was extremely proud of myself and I think that I can do it again on my own, but the stakes are a little different this time...don't want to risk it!

A lil background...

Location: CA
Lender: CW
Investor: BONY
Loan: $325,000 80/20, 3/27 hybrid arm, subprime, interest only

Mod terms: ARM increases stopped, initial rate of 5.7% frozen for 5 years on the 1st mortgage with the addition of principal to payment.

Nothing was done to the 2nd 9.875%

Loan balance today: $321,000

Todays value: 160,000

Hardship: Husbands OT has been cut and we are strapped for cash each month. We have run up credit cards to stay afloat. Now all of our cards have lowered available credit to zero and raised interest rates, so we are now credit poor. No lates yet! I am going to be laid of any day...my income is very little, as I am in the kitchen remodeling biz and who's doing kitchens? Thats soooo 2006!

I want a principle reduction, since we are so underwater. I also want a low life of loan fixed rate. Can this be done? If this is not possible we are prepared to walk. It just doesn't make sense to stay with the loan to value ratio at 200% When will we be even, 10-15 years?


So here are my questions...

Should I tackle this mod on my own or pay for a laywer?

Should I stop making payments and screw up credit for best results? (only way we can pay lawyer!)

Should I play hardball and demand a principle reduction, threaten to go BK? threaten to walk? We are in a nonrecourse loan, so I think that is ammo. But, I prefer the flies with honey method, but I want real results this time, not just a 5 year bandaid.

Shannon

[SillyWorld]

I would continue on the Mortgage payment keep it up to date...Go to www.naca.com and set up save my home thats if you have more than 31% of all Gross income going to Mortgage alone and you want to save the home as Bony has given 2% for the life of loan and up to 70,000.00 on a special no interest loan due if you sell home or refinance in the future, I do believe they could care less if you want to walk as they can use the lost profit from the home as write off for more Obomba money...

[shannonek]

Thanks for the reply,


The 70 K, is that like a principle forebarence?

[Moe Bedard]

Hey Shannon! Long time since we have seen you around.

I say do it on your own, but consult with a few attorneys first. I think you have the savvy and skill to handle this. But it seems like you are on your way to bankruptcy this next year or you may be just walking from your credit cards because of the income situation, so you will need an attorney sooner or later for sure. Maybe try this on your own or through NACA and if that does not work, then try the lawyer.

We are just not seeing any principle reductions at all and it has been that way since the beginning. I don't think we will ever see them.