Principal Writedowns Make for Better Loan Modifications--But Nobody Does it

Principle Increase reply

Yes, that was included in one of the scenarios proposed for this government flop of a plan. And it was a fair deal. But banks were still allowed to consider a principal reduction as optional. So, why should they be expected to do anything if there is no mandate?

Brilal of FL @ Oct 24, 2009 15:57:17 PM

RE John Doe

Paaaaalease,,,You dont think anyones is buying your post do you. Just try getting a human on the phone at a bank if you have entered the foreclosure circus. If you do happen to get someone on the phone the person answering the phone is in India, (HSBC). Each time you call it is an endless circle of the same questions and no one will help solve a problem which in many casees such as mine is temporary in nature. The Obama plan is a total sham and failure and banks want no part of it and their canned explanation is always you dont fall under the guidelines even thou I do and I am currently working with a no fee loan modification mediator. Once you get all the forms they want submitted they ask you for them repeated ly each time you call and they say calls in in 30 days. Obviously you have no clue what the real world is experiencing are you.

Jenna of NJ @ Oct 22, 2009 13:52:35 PM

Modified MerryGoRound

Trying to get the Modified Mortgage Loan is a nightmare. I have been trying with the Flagstar Mortgage company since March of 2009. Did everything they have told me to do . During this process they sold my mortgage back to Nationstar who sold it to Flagstar the year before with the promise the new mortgage company will continue to go through the process. I am still waiting and trying to hang on to my home. It is now almost November, I want to get off this MerryGoRound.

Eve of TX @ Oct 22, 2009 11:10:19 AM

Priciple Increase

How about when values return to "normal". Lenders should tack the apprciation on to your principle balance. You can't have your cake and eat it too.

Jeff of TX @ Oct 22, 2009 09:19:40 AM

Mods are happening

I work for a big bank...the biggest. I do Making Home Affordable Modifications everyday, I'm a professional. I have 200+ files and so do my 280 co-workers accross the country. The people we are working with save anywhere from 2500 to 25 dollars (most in the 500 to 1500 range) on there mortgage payment depending on their individual financial situation. There is help out there you don't have to pay someone to do it (this is a scam more times than not), you can call in yourself, and if you qualify (meaning you earn some kind of income, because you can't live somewhere for free)"evil" banks are willing to modify your loan and there is tremendous pressure from the "evil" govt on all banks to get this done. If you can't afford your house a bank is not going to put a band-aid on a broken leg so yes, some people will not qualify and will lose their home. Bottom line is the banks and the govt are trying to help no matter what some people think. If you read the MBA reports you'll find that 50% of people fall out of MOD's because the borrower fails to return the banks phone calls. Which I can believe bc if my bwrs would call me back I can stop a foreclosure sale date right then... Yes, there are horror stories but I guarantee if the bank can keep you afloat with a pmt that makes good financial sence there is help for you. You just have to find it... There are good people working at banks helping an awful lot of people so keep that in mind next time you want to write a hateful comment. We would all like to see more being done but we don't live in a perfect world, and there is certainly no perfect system.

- Senior Loan Servicing Specialist

John Doe of TX @ Oct 21, 2009 16:27:43 PM

STILLDEALINGWITHCRAP

Yup, I'm one of those people suckered into accepting a high arm mortgage. And this has done nothing for us. The mortgage company simply refuses to work with us and I'm tired of paying for mistakes of the big three credit bureau when they say they took other peoples loans off my credit report and I find they did not. Its time to look for a new home - one without a mortgage company. I wish it didn't have to be this way - and it didn't. But oh well, I'll just destroy the house and let them have it back. Whatever anymore. They are not worth the time of day and I'm sick of being screwed over by people who are too greedy to even realize that I am trying to help us and them by agreeing to a normal interest rate like what I thought we had.

And now you know why we're leaving our homes in droves. Piss on the mortgage companies. I hope they flounder

Nikki of MI @ Oct 21, 2009 15:09:58 PM

Tell it like it IS

http://www.webofdebt.com/articles/mers.php

An VERY conservative ex-Reagan admin official warned about lenders not proving they owned debt before foreclosing many years ago. I learned a great deal from him lately when he was kind enough to explain the secondary mortgage market to me. Now this woman seems to be carrying it on. All across the political spectrum folks know this is wrong. And folks have better things to do than to criticize Obama I suppose if you look at the small issue of monetary collapse. Most of the problems he faces were known when the previous administration put policies in effect that allowed the storm to form. The conservative politico I mentioned earlier says this happens every few decades where the wealthy take back the assets at a discount. When the carrots they "gave" the working class for a while were about chewed through. That's the wierd thing about this time around...middle class folks are seeming to like the circumstances of their financial rapes by the way they bite the guy who is trying his damndest to fix it.

david of CO @ Oct 19, 2009 20:00:50 PM

Ditto

Ditto...ditto...ditto...ditto...ditto...to the end!

BJ of CO @ Oct 18, 2009 18:23:16 PM