I wanted to know if AHMSI has offered a successful MOD on principal reduction for borrowers that are underwater on their mortgages. My husband and I purchased our home in Sept. 2006 when the market was high, $483K loan with $20K down, and 6.5% 2 YR FIXED INT ONLY and then adjustable, 30 YRS. Two years later in 2008, I did a loan mod with AHMSI and received a fixed rate of 5.56% before the rate adjusted but payment went higher to $2800.00 because it included principal and interest, no escrow. However, the house is still underwater where it's selling at
$225K in Central Valley, CA. Principal reduction is the only option since we are struggle on $2800 monthly.
My husband colleague mentioned that she just received a principal reduction with Wachovia, from $350K to $150K and she pays only $1200 - $1400 monthly. Is this possible? Principal reduction MOD? She used an agent (not sure what type of agent), but he charges $2500.00 and it's due when the principal reduction is done. My husband said she didn't pay for 4 months and then received principal reduction and still keeping her home. I'm skeptical..and foreclosure is a scary for my family and kids.
Please anyone, what do you think and do you think principal reduction is possible? Only thing I saw on the forum was FHA refinance for underwater mortgages (payment must be current).
Thank you very much,