First Franklin

[cdlwrl]

We did a Mod 1 yr ago. Knocked the ARM back down to 5.875% for 2 yrs.

However, I think this is just a bandaid, as we are 30k underwater, and unable to refi. Very doubtful the home goes up 10% in value within the next yr.

My question is, has anyone had any luck in actually getting principle writedown, to reflect the current home value?

[Moe Bedard]

This is what the modification guidelines state..........

Will the Home Affordable Modification help borrowers who can easily afford their current payment but whose property value is now less than the amount they owe?

No. Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation. However, by preventing avoidable foreclosures, the plan is expected to stabilize and eventually strengthen property values which will benefit all homeowners.




but, If your payment is still more than 31% of your gross income and it is a struggle because of this........then you may be eligible to apply for another modification.........

here are the new guidelines............

http://www.treas.gov/press/releases/...guidelines.pdf