Principal reduction??

**june126** · 09-26-2010, 08:19 AM

Hello,

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,

JUNE126

**wizzy26** · 09-26-2010, 08:49 AM

There are a few people receiving principal reductions ,,,, I was one of those very few but not as much as 200K ....mine was 8K and by the same lender wachovia....they're the only ones along with ocwen that is using this strategy. Most lenders are adding missed payments on the loan balance and therefore guaranteeing future defaults....

**june126** · 09-26-2010, 09:05 AM

Thanks Wizzy26 for info on your principal reduction. You are right, most lenders are adding the missed payment back to the loan balances and you are still paying for it in the future. Chances for default is still high.

**izzie** · 10-02-2010, 09:21 AM

I have a mortgage loan with AHMSI (found out Wells Fargo owns them) I called and they (or the investors) are not offering a Principle deduction at this time, I have heard some other banks are, but not the above. Go figure!
And yes, they want to tact on all missed payments, and fees, if I want to try again, for a loan mod, I filed bk on them and was discharged 2010, they lost the note, and are still foreclosing on me. Now that I know it is Wells Fargo who owns AHMSI, I think i will let it go, they are crazy to work with as from what I am reading the post here. Even though you file a bk, the lender still has to go through the foreclosure process to get it back legally in their name. Found that out to!

**izzle** · 10-02-2010, 10:00 AM

Originally Posted by izzie

I have a mortgage loan with AHMSI (found out Wells Fargo owns them) I called and they (or the investors) are not offering a Principle deduction at this time, I have heard some other banks are, but not the above. Go figure!
And yes, they want to tact on all missed payments, and fees, if I want to try again, for a loan mod, I filed bk on them and was discharged 2010, they lost the note, and are still foreclosing on me. Now that I know it is Wells Fargo who owns AHMSI, I think i will let it go, they are crazy to work with as from what I am reading the post here. Even though you file a bk, the lender still has to go through the foreclosure process to get it back legally in their name. Found that out to!

Welcome Izzie to the community... You name is so very close to mine.... Hope we don't get mixed up...

**izzie** · 10-02-2010, 10:55 AM

Oh yes it is! I hope not too! Thank you for the welcome!

**june126** · 10-04-2010, 12:24 PM

Izzie,

Again, nothing on AHMSI on principal reduction. I cannot keep up with the $2800 monthly on my home, now I missed my Oct. payment. Missed payment are added back and you stil owe what you started with. I was hoping for HAMP. Have you checked into that?

PS. - I have requested a modification from AHMSI yet for HAMP. I was going to pay someone to help with the MOD. Not sure if I should or do it myself.
Any advices?

Good luck,

June126

**izzie** · 10-04-2010, 05:53 PM

june126,
Hello! I talked with AHMSI, again, today. I told them (and wrote on all docs before sending) I will not reaffirm the loan until I have a payment reduction. I will not get on that sinking ship again. I also faxed them a doc stating I want my original note sent to me within 10 days. We"ll see how far that gets me. I'm at my wits end, I know I can walk but...tell me where what else can I miss a payment and not get kicked out in 30 days?? See what I mean? I bought another house (on contract) but if I miss 1 payment they are not going to play with me like a mortgage will, today anyway. So I am trying, just don't want the same thing happening again as it will if they do not do a payment reduction. For the love of god, they can do it that way with me, or take a hell of a hit when it goes back on the market and it sells in a foreclosure. You'd think the idiots could understand this. I paid in 2006 $235,000, today market value is $175,000!! Now you'd think they'd understand wouldn't you? Why pay to go thru a foreclosure when cutting the princible for me( us) would save so much money upfront?
I don't get it??
Good luck to you! What state are you from? I'm from Iowa.
Good luck to you too!!

**juskilentime** · 10-04-2010, 08:08 PM

The principle reductions at Wachovia are probably the World Savings pick-a-payment loans that are in-house and have no investor behind them.

Don't hold your breath on a principle reduction if the loan is owned by Fannie, Freddie, FHA or VA. Can you imagine the number of people who would be lined up for that? Hundreds of thousands, millions?

**izzie** · 10-04-2010, 08:14 PM

My, my...what do we have here! All they would of had to of done was play fair (banks) oh no, not them, now take a peek at whats going on!!
Where's the Main Street Media on all this stuff???
Welcome To Jim Sinclair's MineSet
izzie

**june126** · 12-06-2010, 12:43 PM

Updating my status, it is now 60 day after submitting my hardship letter for HAMP. I received a letter that I was denied, and now they are working on a traditional modification. I haven't spoken with my negotitor StevieGlowac, even after I left numerous messages. However, Vallerie Villanueas had told me that they are giving me a traditional mod and the numbers are being ran. Stevie will contact when it's done. I have been late for Nov and the collector are now calling. Has anyone dealt with Stevie?

**acesfull** · 01-24-2011, 12:53 AM

Hi All

just getting this tread jum started again. Is there any word on AHMSI offering Principle Reductions?
I think if they don't offer me one, I will be forced to stay in the home as long as possible and then walk. They appairsed my home in 2006 for 410k. I owe $388k the home may be worth $279k. I can now rent the same home in my development for about $1100.00 a month less then my current mortgage payment, with paying HOA or maintenance. If AHMSI can't lower my principle balance, then so long. I will walk after exhausting all my court delay's BK's etc. NJ is backed up. I think I could string this out for at least 16-18 months may be more.
I just can't see throwing good hard money that I am struggling to keep up after a home that is undervalued. I feel like a slave to my mortgage.
Just tired of it all. Anyway is AHMSI doing any Principle Reductions now or in the near future?
Thanks to everyone for the reply's. I am back.
Acesfull

**marvelrules** · 01-24-2011, 06:15 AM

That will be my demand or I'm gone. The only way is to reduce my 265000 to 190000 at todays value and not 7.8 but under 5%. The save all the foreclosure costs and alot of money. But that would be logical.

**acesfull** · 03-02-2011, 08:14 PM

Hi All

I think we all need to bombbard AHMSI with constant letters threatening to walk away from the property if they don't offer principle reductions.
We need to band together. Lets send letters two a week if need be. We need to be heard.
Lets do it. I am sending my request for a principle reduction out in the AM. Please join me.
Thanks all.
acesfull

**acesfull** · 03-05-2011, 09:47 AM

hi

send your principle reduction request today.
I am going to send one a week.
how about you? we need to be heard.
thanks
acesfull

**cindyfmfl** · 03-10-2011, 08:37 AM

Hi - new to the forum - but I want to post to this thread to tell my story & what we are doing. We live in SW Florida (one of the hardest hit areas in Florida) and bought in 2005. We had 2 mortgages - one through AHMSI and one thru GMAC. The GMAC was for $26,000 and we paid that off in 6 years. We currently owe $203,000 on the original mortgage. The house appraises at $92,000. A house down the street is for sale at $49,900. Almost all of the homes in our 8 block radius have either turned over to foreclosure or are in the process. So I decided instead of waiting until we have to walk away - I am trying to be proactive. There are a few good links in this blog - I found one to MERS and then went to my County Clerk's website to look up my mortgage documents. Sure enough, I found the MINS number and put it in the link on MERS. I came up with the service company and the inverstors name who holds the note. So now I have accumulated information and comparables of properties in my area. I am asking them to give us a principal reduction - do not want a loan mod - we are current on our payments for now. Walking a fine line trying to make them. I made up a whole package of information - I am sending it to the investors, the servicing company Home preservation deptment, every congressman, senator from Florida and local politicians as well as the White House. Just throwing darts at a board and we will see what hits... Let you know if I here anything. Thanks!

**acesfull** · 03-10-2011, 09:09 PM

hi cindyfmfl
welcome aboard. you will be exposed to tons of useful infomation here at loansafe. so read and read. then decided your best couse of action for you and your family.
now, I love your enthusiasm. An I think that principle reduction will be the only way the housing market can be saved.
I noticed that you are current on your mortgage. Most convential wisdom on this site advocates not paying your mortgage, however you need to do what you think is best for you and what you are confortabe doing. The lenders tend to look away from those homeowners that are current on there loan. I guess its like the squeaky wheel getting the oil etc.
I wish you much success on your quest. please keep us posted on your progress.
All the best
Acesfull

**acesfull** · 03-10-2011, 09:14 PM

Hi
Also don't be afraid to use the contact info from this site. Send your request to Jeanne Drake office and Jim Davies Office.
You can find there address here. They are the bosses so they will have someone contact you. Don't except nothing but a principle Reduction.
Good luck
acesfull

**cindyfmfl** · 03-14-2011, 11:27 AM

Thanks Acesfull - you are right about finding information on this site - it is a great resource - I already mailed packets to Jeanne Drake and Jim Davies. I think I will also send one in e-mails to them as well. I know throught other contacts that you need to be late before they talk to you - I thought we would try this first - then move on to that step. We will see what happens.

Thanks!

**acesfull** · 03-15-2011, 01:55 PM

Originally Posted by cindyfmfl

Thanks Acesfull - you are right about finding information on this site - it is a great resource - I already mailed packets to Jeanne Drake and Jim Davies. I think I will also send one in e-mails to them as well. I know throught other contacts that you need to be late before they talk to you - I thought we would try this first - then move on to that step. We will see what happens.

Thanks!

Hi
please post there Email addresses here.. big help
thanks
acesfull

**SurfwhenUcan** · 03-15-2011, 02:19 PM

Originally Posted by cindyfmfl

Thanks Acesfull - you are right about finding information on this site - it is a great resource - I already mailed packets to Jeanne Drake and Jim Davies. I think I will also send one in e-mails to them as well. I know throught other contacts that you need to be late before they talk to you - I thought we would try this first - then move on to that step. We will see what happens.

Thanks!

Hi Cindy,

I applaud your initiative. You say "hardest hit" - do you mean hurricane? When? Or the oil spill?

Anyway, I'm trying to figure out what the hardship on which you're basing your principal reduction request and then maybe I can help you. I might be able to save you a lot of effort.

**SurfwhenUcan** · 03-15-2011, 02:19 PM

Originally Posted by cindyfmfl

Thanks Acesfull - you are right about finding information on this site - it is a great resource - I already mailed packets to Jeanne Drake and Jim Davies. I think I will also send one in e-mails to them as well. I know throught other contacts that you need to be late before they talk to you - I thought we would try this first - then move on to that step. We will see what happens.

Thanks!

Hi Cindy,

I applaud your initiative. You say "hardest hit" - do you mean hurricane? When? Or the oil spill?

Anyway, I'm trying to figure out what the hardship on which you're basing your principal reduction request and then maybe I can help you. I might be able to save you a lot of effort.

**cindyfmfl** · 03-24-2011, 09:00 AM

Hardest hit when the real esate market boomed in 2005-2006 our area was jumping lots of jobs and the price on house kept going up. Then the bottom dropped out and since most of our jobs were in construction for this area those went away. The price of our home in 2005 when we bought it was $230,000 (low-moderate price range). Right now we are assessed at $90,000 and it will drop again with the new tax bill. A house built a year after ours just sold for $47,000 and another one is going for $45,000. We will never recover. My husband was also laid of from his job last May. We are out $100,000 for our down payment and the money for the pool we built. We like our house and want to stay, but not at this price. Oh yeah - we have an adjustable rate - which really saved us, but now it reset and our payments went up another $200.

**SurfwhenUcan** · 03-24-2011, 04:57 PM

Originally Posted by cindyfmfl

Hardest hit when the real esate market boomed in 2005-2006 our area was jumping lots of jobs and the price on house kept going up. Then the bottom dropped out and since most of our jobs were in construction for this area those went away. The price of our home in 2005 when we bought it was $230,000 (low-moderate price range). Right now we are assessed at $90,000 and it will drop again with the new tax bill. A house built a year after ours just sold for $47,000 and another one is going for $45,000. We will never recover. My husband was also laid of from his job last May. We are out $100,000 for our down payment and the money for the pool we built. We like our house and want to stay, but not at this price. Oh yeah - we have an adjustable rate - which really saved us, but now it reset and our payments went up another $200.

Well, what I can tell you is you should pursue a principal reduction if you have absolutely nothing else productive that you could do with your time, and that includes watching grass grow.

One thing you might consider is this: Are homes in your area really around $49,000? If so, take your mortgage payment and multiply it by 18. Subtract that figure from the $49,000 (or lower number factoring home prices in 3-4 yrs). Let me know the result.

The purpose of this little mathematical exercise is to forecast how much you could potentially save living rent free while you play The HAMPster Wheel Game (look up the thread by that name in the Chase Mortgage forum). You are essentially saving up your next down payment and THIS time, you'll be buying in the trough of the market. Anyway, food for thought. Read post #1 and #5 to get started and let me know what you think.