Worried - NACA Submitted since 1/20/09 and still nothing

[Cassietw]

Call back and find out what kind of forbearance. They are working on a "principal" forbearance for me.......

[whatdidigetinto]

that's what they said to me a principal forbearance.I asked her(NACA rep)what that ment and she said that they would probably lower my payments for a couple of months and then reanalize my file again after a couple of months?Not a permanent solution?

[gray517]

A principal forebearance is where they take part of the loan balance and make it sort of like a balloon at the end of the loan, the forebearance would have to be paid off if you sell or refi the property in a lump sum.

this is from the making home affordable:
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Step 6: If the Front-End DTI Target has not been reached, forbear principal. If there is a principal forbearance amount, a balloon payment of that forbearance amount is due on the maturity date, upon sale of the property, or upon payoff of the interest bearing balance

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[yaya01]

I did ask the NACA rep and he said it was just the "wording" they used and it did not mean it was an actual "forbearance." He did not say anything about a principal forbearance or anything else other than to call back in 2 weeks.