Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Do I need a lawyer to get a principle reduction on my home l

Do I need a lawyer to get a principle reduction on my home loan?...I am currently 2 months behind on my mortgage and my home is now worth 100 thousand or more, less than what I bought it for. I really want to keep my home and I'm wondering if I can get a principle reduction because my bank is just giving me a payment plan that is best for them and not me, so does anyone know if I need a lawyer to get a principle reduction? and if so, does anyone know a good lawyer?

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

last question first: yes, i know lots of good lawyers, but that's not necessarily going to help you.

next - no you do not need a lawyer to get a principal reduction on your loan, but you need to be a pretty good negotiator. and you'll need plenty of good, hard facts so you can state your case with the lender.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi csotelo!

Welcome to forums!

I think you should follow George's advice. It is not necessary that you need a lawyer to reduce the principal. You can yourself negotiate with the lender so that he reduces your principle. If you are not confident in doing so, then you can take the help of a lawyer. You may also have to clearly tell the lender about the hardships that you are facing while paying the mortgage dues. The principle reduction will depend upon how well you can convince your lender.

Feel free to ask if you have further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am definitely not paying one of these consumer protection programs $2500 for them to negotiate the terms on my mortgage. I have tried several times to negotiate without success but I am going to continue till someone can do something. I have 4 weeks left till I receive a letter of forclosure so wish me lucK!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

do it yourself. Buy a ebook and go for it. I used loanmodificationbookstore .com for mine. saved 200 bucks a month.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes, you can definitely do it yourself but you will go through what most people are going through. Long waits and denials. If you are able to negotiate something with the lender, almost 90% of the time, it will not be as good as if you go to someone who knows how to do it. So, if you are saving $400-600 per month, maybe you could have been saving $500 per month. In one year or less, you make back what you spent.

In some cases, the savings are a lot greater. It just depends. Good Luck!

Diana Rosero
Homeloan Financial
818.859.9930

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

What are some of the tricks to negotiating with Bank of America? My folks are disabled seniors who have been taken advantage of during a recent refi and they're now upside down on the loan. They're also recovering from a fema disaster and the forced insurance Countrywide told them they had to take never paid out for the damage to the home. Both are on a fixed income and they've had to rent a apartment. Their medical issues have forced them to relocate to this apt. until the work is complete as the air quality has even made me visit the clinic twice now. I've been attempting to do the work on the house as I have time since most of their income is going toward their medical and their rental. I have them in a loan modification but BOA takes forever to respond. I even went through naca and acorn to see if they could help but the principal reduction in their mortgage seems to be their best bet. The home is insured for $154,000 through is was appraised for $280,000 during the refi and the recent sales prices of similar homes in the area are between $150,000<>$189,000. Their mortgage is around the $250,000 range. Any help would be greatly appreciated as these are two independent folks who really would like to stay in their home even though the neighborhood has turned into a "hood"....Just had a triple murder a few months ago but they still don't want to move due to all of the funds they've sunk into the house. PLEASE HELP THEM

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

you absolutuley need to get representation the faults that are in your escrow packet are probably many,,my name is jonathan and i am a representative with U.S.F.P LLC if you would like to get profesional advice i would love to speak with you ..p.s if you go onto any of these forums you will see alot of different opinions of what you should do but they are just that opinions not only will you need representation from a company with experience you will need that company to go before federal court for you becuz what is hapening with princaple reductions right now are federal offenses..for nore info please email me,,, i look forward to hearing from you..

[size=9:c0701ec103][color=Red:c0701ec103][Email address deleted as per forum rules. Thanks.][/color:c0701ec103][/size:c0701ec103]

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Our "Guest" here, who claims to be a "representative with U.S.F.P LLC" is, undoubtedly a scavenger, seeking to profit from the losses of others. Looking up that outfit, I find that they are into the game of forensic auditing of mortgages.

Look deeply into the background of such outfits, and you'll find that a forensic audit of a mortgage will bear little if any fruit. They ostensibly find all sorts of legal issues with the documentation, yet those issues will rarely hold up in court.

As a homeowner, engaging the services of such a firm is an expensive proposition, and rarely is the expenditure salvaged in the long run.

I was given the opportunity to get in bed with such a firm, but my sense of ethics and fair play caused me to back off. Yes, I could have made scads of money with this gimmick, off the backs of desperate people; but I'm glad I didn't do it.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I welcome the opportunity to hear from someone who truly might have benefitted from the forensic audit procedure, especially from this firm noted above. It would be quite interesting to know that someone might have actually had a favorable outcome.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i pd for my new house (3yrs) 340K. Owes now 200K. The house next door (new and same model) is being offered at 160K. Ihave the money to pay out my loan but thinking is better to walk away from my house and buy the one next door. How can I convince my bank in order to get a decent settlement to avoud a walk away? PD I don't have any hardship situation.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Do you really think that your lender is going to allow you to walk away from that debt without taking some action against you? There have been so many folk walking out on their mortgages that there is a movement afoot to allow lenders more leeway in getting restitution from those borrowers.

I don't see much benefit, frankly, in your plan.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

George, do you know where I could find bad info about this company. I have a guy who says he is representing them telling me that they could save my house. Give the 7000 and then they'll start this audit and reduce my principal balance bring my home down to market value as well as the percentage rate. I haven't found anything positive or negative about them thus far...and I really need to save my house.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Justin,

If you want to save your property, then you should contact your lender and apply for a loan modification rather than taking the help of a third party. This will be a better way to save of your property and there would be less chances of getting duped. Moreover, you won't have to pay any upfront fees to the lender.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You said: "Do you really think that your lender is going to allow you to walk away from that debt without taking some action against you? There have been so many folk walking out on their mortgages that there is a movement afoot to allow lenders more leeway in getting restitution from those borrowers.
I don't see much benefit, frankly, in your plan."

If this individual lives in a non-recourse state the lender likely no recourse to obtain restitution from default on a primary residence.
The benefit would be to save 40K. The cost of that 40K, of course, is ruined credit. Saving 40K would not be worth runined credit to me, but to this person, maybe.
I am faced with similar circumstance, except I owe $212K @6.5% and my house is worth$100K. Between principal and interest if I walked and paid cash for another house just like mine, I would save over $300K. Plus I live in a non-recourse state. Strictly from a numbers perspective walking away must be a consideration. Staying put in this new economic paradigm is simply too costly to ignore.

Why is it in our society that we accept banks taking advantage and strong arming customers, but deride individuals who turn the tables?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Justin, I hope you've kept that $7000 in your pocket. Don't give any moron any money for an "audit" of your mortgage. You'll be out $7000, they'll do little of anything for you and your loan will be in default and you'll be out in the street.

Any outfit that insists on money upfront (unless it's a lawyer's retainer) is the wrong place to look for help.

I've said it at least a hundred times, and I will continue to say it. You can FREE assistance if you look for it (HUD, for instance).

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have proof of several homeowners who have got a balance reduction and/or have actually walked out of court with their home FREE and clear. Your problem of not hearing from anyone this has happened to is due to the "GAG" order they get in court to not advertise or talk about what transpired as this would cause a Frenzy across the nation. Do Know that Forensic Audits of Mortgage do work. The violations do stand up in court. In fact, if U.S.F.P., LLC cannot help you... they refund your $ in full! Who would make such an outrageous offer, unless they knew that 90% of their audits are successful!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You mean like M3 Strategy in AZ had a money back guarantee? give them 2 grand, and the only guarantee is you can kiss your money goodbye!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

George: You wrote "I welcome the opportunity to hear from someone who truly might have benefitted from the forensic audit procedure, especially from this firm noted above. It would be quite interesting to know that someone might have actually had a favorable outcome."

My Question: Have you had any such response? I have come across an rep. for USFP, LLC who promises great things as well.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

JohnF - I have never heard any such testimony. I have, however, heard of the lawsuits filed by state banking commissions and the like.

It's awfully easy to prey upon the poor folk who don't know which way to turn when it comes to dealing with their now-delinquent mortgage that's about to bring a foreclosure down on their heads. Naivete, inexperience, misplaced trust - these all contribute to the thousands of cases of fraud that have been perpetrated upon the unfortunate folk who sent thousands of dollars to firms like this only to find that there was no help available to begin with.

When you consider that many people have sent multiple thousands of dollars (which could have been used to actually make regular mortgage payments), you have to wonder just how hot the space in hell will be for these scammers.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I recently had to file a chapter 13 in order to save my home. I have been back and forth with Bank of Americal for the past two years try to do a modification. All they have done is give me the run around, by the time I get off the phone with them I am crying. I have been told twice that I qualify, I sent them all the required documentation and then they send me a letter back stating they did not recieve something and they have constantly miss calculated my finanical information. I do not not know what to do, I bought my home for 160,000 in 2007 and now it worth about 135k. I need to lower my payment because I lost 40% of my income to becoming disabled and loosing my job. Please hlep me!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi blaineb!

Welcome to forums!

As you have filed Chapter 13 already, you will receive an affordable payment plan from your lender and trustee which will help you in paying off the loan. At the Chapter 13 meeting, you can contact the lender and ask him to consider a principal loan reduction for you. It will be the lender's discretion whether or not he will consider your request.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you sussane, the affordable payment plan condenses all of your bills into one payment to the trustee, it does not lower your mortgage payment...that is what I have tried to do for the past two years is lower my mortgage payment. Bank of America is HORRIBLE to deal with, all they do is give you the run around and play games!

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You're welcome!! :)

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you can show not solible you can have the debt of the loan removed from taxes.. talk to your cpa.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:25 | Post subject:

Page loaded in 0.465 seconds.