Loan Mod from AHMSI lowers my rate, increases payments that guarantee I"ll go BK

[steves]

I have three option arm loans with AHMSI. One O/O and two investment properties. I was offered a loan mod for all three. Step rate that reaches 5% in the 4th year and is fixed at that until maturity. That's the good news. The bad news is that the combined payments will increase $5,000 per month by the 4th year. I know I could never make that payment so I'm not going to accept the offer. I know that they could offer a balloon feature that splits the loan balance and allows you to make a payment on one balance, but not the other - net effect is a lower monthly payment. They won't offer me that option. They told me they want to string me along for a few years until the market improves and then when I default, my properties will be worth more and the ensuing foreclosure won't be as expensive for them.

Has anyone run into this with AHMSI? Any other way to appeal to them that you can think of? Jeanne Drake was not helpful.

[lennox]

I say go for it. Let them go into foreclosure. I also think you're being greedy and shallow minded. Putting your primary residence aside, in my opinion AHMSI was being more than fair in offering to modify your investment properties with a low and fixed rate.

Loan modifications were intended to help families stay in their home. If your home is that important to you, then figure out a way to keep it, and let the investment properties go into foreclosure. What moral incentive is there for AHMSI to ask their investors to forgo their profits...to help you make a profit on your investments?


The banks are backlogged with people needing real modifications to keep their home. There are people on this site that are close to foreclosure that can't get their negotiator to call them back. When you ask the bank for unrealistic demands to help you keep your investment properties, you are taking away valuable time that could be used for people that are facing foreclosure.


I think AHMSI is being generous even offering you a fixed rate at 5 years of 2%.


I repeat myself when I say...the goal of the program is to help families stay in their homes (even if they made a bad financial decision)...not help investors who made bad financial decisions.


T

[AZOwner]

PETITION TO THE U.S. GOVERNMENT FROM AMERICAN HOMEOWNERS | Petition2Congress |

[scarletofyre]

They told me they want to string me along for a few years until the market improves and then when I default, my properties will be worth more and the ensuing foreclosure won't be as expensive for them.

THEY SAID THIS OUTLOUD? Really?? Hmmmmm---well---"They" must have a better crystal ball than most! No one knows if property values will ever go up, first of all. And second--how would they know that you wouldnt default in a mere THREE months??

[steves]

I wasn't talking to a particularly subtle understanding rep for sure. The thing is I never asked them to reduce the balance. I want to pay it in full, but when the option arm payments reset, I'm sunk. I was asking for a solution that just keeps the payments about the same so that I don't ever have to go back to them again. I'm just wondering if anyone has argued this successfully with AHMSI.