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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?

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: Wed, 04/04/2012 - 22:36 | 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: Thu, 04/05/2012 - 01:33 | Post subject:

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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, 04/06/2012 - 16:39 | 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: Mon, 04/09/2012 - 23:59 | 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: Tue, 07/17/2012 - 15:01 | Post subject:

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: Tue, 12/30/2008 - 13:19 | 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: Tue, 12/30/2008 - 19:10 | 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: Thu, 01/15/2009 - 08:43 | 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: Thu, 01/15/2009 - 16:30 | 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: Sun, 01/18/2009 - 19:27 | 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: Sun, 07/26/2009 - 23:36 | Post subject:

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