I need Principal reduction (30 years of pouring money into a hole is dumb)

**buckstucky** · 03-22-2012, 11:14 PM

Ok heres the sad story:

Bought house for $650K in 2005
$520K AHMSI Loan, $60K GMAC 2nd, $80 down Pmt.
Loan type 5yr Int only ARM, 2nd Heloc

2007 Wife looses job
2008 Apply for loan mod with ahmsi
2008 go through multiple nightmarish hassles getting multiple faxes of paperwork to AHMSI. I cannot understand any of the people from India that Im talking to and they apparently cannot understand me.
2009 Finally someone who speaks English says that my paper work has been received and is going to the underwriters.
2009 Sep successful Loan Mod interest at 3.5 percent

They reduced my monthly payment from $3300 per month to $2660 per month and this loan is nearly a conventional 30 yr loan. Now all of this is great but the problem is I live at ground zero for the mortgage crisis (Stockton,CA)

The issue is that I still owe $580K on a house that lists for $290K. I will NEVER be able to pay this off or be able to sell my house regularly. I cannot walk away because I will lose my security clearance for my job. My options are short sale or principal reduction.

I want to know if anyone thinks AHMSI will reduce principle? If so when ? Is AHMSI actually Wells fargo ? Didnt they get government money to help people like me ?
Help !

**Evan Bedard** · 03-23-2012, 07:55 AM

The issue is that I still owe $580K on a house that lists for $290K. I will NEVER be able to pay this off or be able to sell my house regularly. I cannot walk away because I will lose my security clearance for my job. My options are short sale or principal reduction.

I want to know if anyone thinks AHMSI will reduce principle? If so when ? Is AHMSI actually Wells fargo ? Didnt they get government money to help people like me ?

Welcome and thanks for joining the forum.

Unfortunately, even with the new mortgage settlement that may help some people achieve a principle reduction, the reductions are most likely not going to be a significant amount and I highly doubt it will help anyone get their mortgage down to today's market value.. I would be careful about going for a short sale if your job requires security clearance and I would recommend having a brief consultation with a local real estate attorney before considering that option..

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**car67** · 03-23-2012, 08:46 AM

I know AHMSI can reduce your payments to be affordable and I doubt you will see any huge reduction in principle but I know AHMSI can redo your loan to include a ballon payment at the end of the note. Lets say the move the loan to a 40 year term lower rates to 3 percent and then a balloon payment at year 30 or 40 for the balance.... I think this would be fine and if you intend to stay in your home who really cares bout the ballon payment if it helps you afford the monthly for 30 years which by then most likely your retired or dead.........

**buckstucky** · 09-08-2012, 12:09 PM

Well here wher the story ends. I decided to short sale in may, the RA told me that the 650K house I bought was now worth 249K. Got an offer the first month for my beautiful custom ranch style house. RA advised us to stop making payments or the short sale would flop. AHMSI said they they wanted a higher amount for the house and the buyer settled on a slightly higher amount. So Im a renter now and my credit has taken a hit becuase3 of the short sale and the fact that my credit shows that i was 2 months behind on my mortgage . Im happy that Im out from under a situation where I was throwing money down a hole. Im darn the laws will change to reduce principal and forgive short sale taxes... if they dont there will be a revolt. The US economy is toast.