principal writedown, this system sucks

[homecomings sucks]

We got a principal reduction on our loan, don't give up the fight this system is screwed. We bought our house 2 years ago, we were talked into an interest only loan. We fought last year, and the lender took us from a interest only and dropped the interest 1 percent, so we would have a payment for the same amount that inclluded principal and interest. It was still an adjustable though, and they refused to modify it to a 30 year, i never understood why, because making it adjustable when we really can't afford it just pushes back into a corner in a few years again. Well this year i attempted to modify it again, i sent all of my paperwork in and sent emails, phone calls etc. Everytime i called, they never had what i sent, or they were missing stuff and they played all of the games i always read on here. Then i got a letter in the mail denying our modfication. I was not asking for anything other then to make it a 30 year loan, it was already at 6 percent which is more then the going rate. They refused. Well i then received a phone call and letter from the other end of the company, they wanted to rewrite the loan because they said the group of loans it was in was in a bad investment and they wanted to rewrite those loans. Well long story short, we signed papers and they wrote the house down 215,000, and put us into a 30 year loan. It is unbelievable that one end of the company won't help you, but the other end off the office okays the loss of principal. Ridiculous and bulls###. I am grateful for it, but i think the system is all wrong. You can't ever get a straight answer, they play games, and it is screwed. I thinking banking needs to go back to the way it was years ago, face to face, personal descions and lenders helping. I am done with these mega banks, i am changing all of my accounts over to my local credit union here.

[scarylarry]

Congratulations

Who is your lender and investor if known?

[homecomings sucks]

Well, it was Homecomings, and you can tell by my name. Although, Homecomings doesn't suck too much anymore. It was owned by their private group, i believe it was residential lending somthing or other. It did not fall under the fannie mae or freddie mac, it was just something they did on their own. The loan guy say all of the planets were alligned, and it does not happen very often. I want to give everyone encourgement here, because this changed my life, and i wish the banks would use common sense for people. I only wanted to fix my loan for 30 years, i did not even have the screwed up hardships i know people are going through. This banks need to help people and stop dicking them around. I just saw on the news there is 700,000 forclosed properties in the US that are not even on the market. Good god, these banks need to work with people or this is going to become even worse. They were really tight lipped with this whole deal, it makes me wonder if there was somthing wrong with my original loan. I never could get contact info for anyone, i would call the main number and reference my loan and would get connected. After i sent my stuff, i did not hear anything for 2 months and gave up. Then i got a phone call that a notary was coming over to sign papers that night. Really screwed up system

[phil413]

Hello Homrecomings,

I too had Homecomings and now GMAC. Homecomings modified my loan about a year ago. I recently asked GMAC to modify again under the HAMP program. My question for you is did they wirite down your principle balance by 215,000 or is $215,000 currently your balance?

Thanks
phil413

[Irish Gal]

Hey homecomings,

Congrats! I suspect there was something fishy about your orig loan and they wanted it to go away, hence, your great deal. Good for you. Like Phil, I just had a few questions re your principal reduction. Can you provide the exact details re original loan vs. final mod? Basically, how much principal forgiven? Final (fixed) interest rate? And, you didn't have to prove any distress re submit current bullshyt financials everyone has to submit ? All you wanted was 6% fixed and Santa Claus arrived ? Sweet ...

[jakelabry]

Also, was it actually a principle reduction or forbearance and is there a balloon rider on your mortgage now? Read that paperwork very carefully!

[homecomings sucks]

I owed 510,000 and now i owe 295,000 on a 30 year fixed at 6 percent. There is no ballon, it was a straight write down. I had to sign a form indicating that they would report it to the credit that amount paid less then owed. It will ding my credit but who cares for that, i am not planning on financing or buying anything. No i did not have to try and work a hardship, when i did my mods i had the issue that my overtime shouldn't count as income because it fluctuates and i don't want to have to work overtime to survive. But with this loan, i had to get that to count every penny because i had to qualify for a loan with more strict standards these days.

[phil413]

That is great Homecomingssuck,

Did you do the HAMP program and if not why? I am asking for a principal reduction or defer me paying on about 200,000 or so so I can qualify for the Hamp program. My balance is 900,000. I was told they are reviewing my file and I should know something in 3 days.

I would appreciate all responses, please. Any hope for that?

[homecomings sucks]

No, i called on that when it came out and they said i did not qualify because it was not owned by fannie mae or freddie mac. They would not help me or modify me at all. No one was willing to do anything, then a year later i got a letter fed ex overnight asking me to call about my loan. I shredded it, looked like junk mail, then six months later i got the same one and decided to call. Then the whole ball got rolling, this was intiated on their behalf. Kind of funny, because they would not even help me get a fixed rate before. Left hand not talking to the right.

[Irish Gal]

Originally Posted by homecomings sucks

No, i called on that when it came out and they said i did not qualify because it was not owned by fannie mae or freddie mac. They would not help me or modify me at all. No one was willing to do anything, then a year later i got a letter fed ex overnight asking me to call about my loan. I shredded it, looked like junk mail, then six months later i got the same one and decided to call. Then the whole ball got rolling, this was intiated on their behalf. Kind of funny, because they would not even help me get a fixed rate before. Left hand not talking to the right.

Just unbelievable, really. Goes to show there is absolutely no rhyme or reason to ANYTHING these lenders do. The fact that you blew them off for 1.5 yrs helped too, I think. That gave them time to watch the econ and market tank more and more, and see the unemployment rates climb too. They finally "got" that their loss would be much greater if they didn't work the deal they did w/ you. Time was on your side! Good for you! Now if the rest of the lenders would wake up too, and admit they're not winning this losing game they've created.

[Irish Gal]

By the way homecomings, during that 1.5 yrs that you ignored them, did you keep up your payments?

[homecomings sucks]

Yes, I never missed a payment. I don't think time was a factor, because they just basically told me they wouldn't help me. I think some how my mortgage was flagged by the side of the company that is working on these writedowns. I tried and tried to modify and i even became that annoying person that called everyday, sent emails, and did everything i could. I was so angry at the lack of help or a human to talk to, i gave up. Then out of the blue this, it is a screwed up company. Why would they take this loss, which i am grateful for, but when i just wanted to fix my rate at 6 percent, they wouldnt even help me or give me a phone call back. I just wanted to fix my mortgage, not even change the terms, dumb, just dumb