Loan Amount Reduction

[NHarrington]

Through blood sweat and tears and actually in labor towards the end of it, Countrywide granted a loan modification which wasn't half bad. We would have taken anything though at the time and now here we are a year later in our tiny condo that is $150,000 upside down. I just received one of their balnket letters saying we may qualify for a rate reduction OR loan amount reduction. We have a 2 loans and I'm wondering what the chances are they would be willing to forgive our Equity loan which is 65,000. Am I dreaming or is this worth a shot? Otherwise I don't know if we should short sale or what ?

[mgallant]

Originally Posted by NHarrington

Through blood sweat and tears and actually in labor towards the end of it, Countrywide granted a loan modification which wasn't half bad. We would have taken anything though at the time and now here we are a year later in our tiny condo that is $150,000 upside down. I just received one of their balnket letters saying we may qualify for a rate reduction OR loan amount reduction. We have a 2 loans and I'm wondering what the chances are they would be willing to forgive our Equity loan which is 65,000. Am I dreaming or is this worth a shot? Otherwise I don't know if we should short sale or what ?

I would guess that the letter you received is for a refinance. If it is a refinance you will need to apply and be approved using whatever the current approval guidelines are. One big issue I see is your appraisal on the property will crush your chances. I have not read anywhere where CW has reduced principle on anyones loan to date but I could be wrong!

[chooch]

I am also not aware of any reductions. Odds are they will just combine your two loans into one loan with a fixed prime rate.

[lecia11]

I received one of those refinance letters, and I don't think it said anything about a principle reduction. I don't think that Countrywide is doing these right now. That's what my rep told me.

[NHarrington]

Believe it or not it says "Our records indicate that you may be eligible for a loan modification which could include a rate reduction and loan amount reduction on your existing home.This is not an offer for refinancing..."

It is from the Loan Modification Department @ Countrywide.

I am in San Diego, CA. I'm calling tomorrow to find out. At least I know what to expect this time,,,,and what to do...document, document, document

[NHarrington]

Anyway, I will post my findings for those who are hearing they are not doing them. They are at least pretending to offer them to some!

[Yanqui]

NHarrington Hi!, if I have this right you have been dealing with countrywide for a year and you got a good modification and now you received a letter stating you may be able to get a loan amount reduction and rate reduction? Did you start paying on your mod or are you still behind on payments?

I'm just thinking outloud. My mod was put through then the house was put into foreclosure and now the online account says the mod is in effect. I am not gettin gmy hopes up and I'm real tired of this up and down emotion but I'm getting a gut emotion that those that have gone underwater on their properties more then hundred thousand it would make sense for the banks to deal because it will cost them more if they didn't on properties in that situation. rambling. Sorry. March 4 is the new Obama plan and something is coming April 1st? I understand the system is swamped and miscommunications are rampant. Please keep us updated.

[NHarrington]

I have never made a late payment. I was one of the lucky ones who was actually helped before it got to that point. Yes, the modification was complete a year ago(bandaid) and we have been paying the reduced rate. Now, we need a REAL solution! I will keep you posted. My best advice is to stay aggressive. I made it my full time job for months. Things seem to be changing all the time.

[Yanqui]

I was hoping that something from this second bailout would help the homeowners and maybe it will change. I just don't see it unless everyone get's rate reductions and the offer of splitting equity with the government if they reduce the mortgage. Thanks, good night, good luck!.

[NHarrington]

ugh, this was from a sneaky 3rd party that charges 1 month mortgage payment! anyone used these people? he said that i would have trouble getting any help on my own. prob same guy who put people in these
@#%#% loans in the 1st place!

[chooch]

I just don't see them doing principal reductions at all. I know they wanted to originally, but the market just couldn't handle it. Thats why the modifications are only good for 5 years. The reality is Obama's new program is only good for Fannie and Freddie homeowners who can meet their eligibility requirements. If for some reason god steps in and grants a principal reduction, please post it here to inform the rest of us to give us hope.