Principal Reduction - Loan Modification Forum

Bijan · 08-27-2009, 06:23 PM

NACA promissed me mortgage reduction and 2% fixed for 30 years, when I asked how she said based on your income and current value of your home BoA have to reduce your principal. HAS ANYONE EXPERIENCE THAT?

Evan Bedard · 08-27-2009, 06:54 PM

Hi bijan,

No we are not seeing any lenders offer principle reductions on any loans. I have maybe seen three in the last two years of experience..

ama125 · 08-27-2009, 06:55 PM

I have not seen anyone getting principal reductions. I asked my BofA negotiator about it, and he has tried to get it but for people, but they never get approved. I've asked for it myself, but it's doubtful. He said it can't hurt to request it and the worst that happens is they get told no.

N2Deep · 08-28-2009, 11:30 AM

Yes what Naca is telling you is ......based on your income, lowering your rate to 2% is clearly not enough. So in order to reach a payment that is 31% of your income some sort of reduction or principle forbearence is needed. However they can not promise that either will be accepted by your lender.

faith · 08-28-2009, 11:42 AM

Quote:

Originally Posted by Bijan

NACA promissed me mortgage reduction and 2% fixed for 30 years, when I asked how she said based on your income and current value of your home BoA have to reduce your principal. HAS ANYONE EXPERIENCE THAT?

Bank of America does not forgive any deficiency judgment or do any princpal reduction. What they do in order to help the homeowners be approved of loan modification is adding all the late payments, fees or costs to the principal which increase the balance the homeowners owed.

Bijan · 08-28-2009, 07:09 PM

Thanks for all your reply, it's let bit more clear now. I sitll not so clear how with monthly mortgage payment of half as much will cover my total mortgage debt with 2% fixed rate for 30 yrs?

Garry · 08-28-2009, 08:00 PM

All I can tell you is NACA can't promise you anything, they do not have the power to force the bank into anything. The bank does have the option of principle reduction, but it is highly unlikely that you will get one, nobody has yet. You have a better chance of hitting the lottery.

CW California · 08-28-2009, 09:14 PM

Quote:

Originally Posted by Bijan

NACA promissed me mortgage reduction and 2% fixed for 30 years, when I asked how she said based on your income and current value of your home BoA have to reduce your principal. HAS ANYONE EXPERIENCE THAT?

NACA cannot promise anything. They propose payments based on what would be affordable for your income and expenses. Some loansafe members ARE waiting for a principal forebearance which is different than a principal reduction. A principal forebearance reduces the amount of principal you would be paying interest on so the payment would be less but when you sell the property the lender will recoup the remaining principal you have not been paying interest on. I do not think we have seen any finalized yet but they have been proposed to BofA by NACA.

Bijan · 08-31-2009, 09:33 AM

Thank you for your response I uderstand now.

ROCINC · 08-31-2009, 01:42 PM

I have a second with Bank of America- originally Whilshire credit- I heard they were settleing on seconds? Anyone know anything about this?

miked2023 · 08-31-2009, 02:31 PM

Quote:

Originally Posted by ROCINC

I have a second with Bank of America- originally Whilshire credit- I heard they were settleing on seconds? Anyone know anything about this?

I'm proposing one this week. I will start a thread of my progress when I hear something back.

08-27-2009, 06:23 PM	#1 (permalink)
Bijan Member Join Date: Apr 2008 Location: Las Vegas Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Principal Reduction NACA promissed me mortgage reduction and 2% fixed for 30 years, when I asked how she said based on your income and current value of your home BoA have to reduce your principal. HAS ANYONE EXPERIENCE THAT?

08-27-2009, 06:54 PM	#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: Principal Reduction Hi bijan, No we are not seeing any lenders offer principle reductions on any loans. I have maybe seen three in the last two years of experience.. __________________ 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.

08-27-2009, 06:55 PM	#3 (permalink)
ama125 Senior Member Join Date: Jun 2009 Location: Reading, PA Posts: 1,504 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Principal Reduction I have not seen anyone getting principal reductions. I asked my BofA negotiator about it, and he has tried to get it but for people, but they never get approved. I've asked for it myself, but it's doubtful. He said it can't hurt to request it and the worst that happens is they get told no.

08-28-2009, 11:30 AM	#4 (permalink)
N2Deep Senior Member Join Date: Mar 2009 Posts: 45 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Principal Reduction Yes what Naca is telling you is ......based on your income, lowering your rate to 2% is clearly not enough. So in order to reach a payment that is 31% of your income some sort of reduction or principle forbearence is needed. However they can not promise that either will be accepted by your lender.

08-28-2009, 07:09 PM	#6 (permalink)
Bijan Member Join Date: Apr 2008 Location: Las Vegas Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Principal Reduction Thanks for all your reply, it's let bit more clear now. I sitll not so clear how with monthly mortgage payment of half as much will cover my total mortgage debt with 2% fixed rate for 30 yrs?

08-28-2009, 08:00 PM	#7 (permalink)
Garry Senior Member Join Date: Aug 2009 Posts: 1,156 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Principal Reduction All I can tell you is NACA can't promise you anything, they do not have the power to force the bank into anything. The bank does have the option of principle reduction, but it is highly unlikely that you will get one, nobody has yet. You have a better chance of hitting the lottery.

08-31-2009, 09:33 AM	#9 (permalink)
Bijan Member Join Date: Apr 2008 Location: Las Vegas Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Principal Reduction Thank you for your response I uderstand now.

08-31-2009, 01:42 PM	#10 (permalink)
ROCINC Member Join Date: Jul 2008 Posts: 21 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Bank of America- Second trust deed I have a second with Bank of America- originally Whilshire credit- I heard they were settleing on seconds? Anyone know anything about this?

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