Strategic Default (if principal not reduced to market) question

[magik570]

[I am in Georgia] Strategic Default question...my house is worth $160K, I owe $240K.. this Wells Fargo loan was in my BK 7 in Feb 2009.. but the lender cut me a deal (modified loan with 2.75% interest rate with no principal reduction) after bk (modified loan) and I kept paying. However, with this huge negative equity, I don't feel its a good deal to pay $240k to own $160K property. 2 questions: 1) If I walk away, what negative consequences do I have? 2) Will the lender even consider principal reduction, even meeting in the half way between $160K and $240K? I am already preapproved for another loan and I can buy another property...i am not behind payments right now...but willing to go behind if the will consider modification after I am late few months.. I would rather stay at this property if I can. If they foreclose, will it be in my credit report? I don't think so..All these payments I have made so far don't show in my credit report..so, if you don't mind answering, what is the best way to get the bank (Wells Fargo) start thinking about principal reduction in my case?

[Evan Bedard]

I don't feel its a good deal to pay $240k to own $160K property. 2 questions: 1) If I walk away, what negative consequences do I have? 2) Will the lender even consider principal reduction, even meeting in the half way between $160K and $240K? I am already preapproved for another loan and I can buy another property...i am not behind payments right now...but willing to go behind if the will consider modification after I am late few months..
I would rather stay at this property if I can. If they foreclose, will it be in my credit report? I don't think so..All these payments I have made so far don't show in my credit report..so, if you don't mind answering, what is the best way to get the bank (Wells Fargo) start thinking about principal reduction in my case?

The only modification program that is currently offering principle reductions is the national/AG mortgage settlement. For this program in order to qualify your mortgage must be owned and serviced by Wells Fargo. You can find more information about the program using the link below:

https://www.wellsfargo.com/downloads...settlement.pdf

This particular expanded modification program, which began March 1, is for qualified borrowers with:

•Financial hardship

•A first and/or second loan on their primary residence

•A loan that is owned and serviced by Wells Fargo — that means it is not an FHA, VA, Fannie Mae, or Freddie Mac loan, nor is it a loan owned by a private investor
Any further detail would be based on each customer’s loan status and financial situation, and dependent upon the completion of a review.