Posted on: 04th Jan, 2009 05:45 pm
Is anyone seeing "principle reduction/forgiveness" being offered on Modifications?
Hi fprice!
Welcome to forums!
As far as I know, it will depend upon your bank whether it will accept a principle reduction on loan modification. You will have to speak to your lender and negotiate with the lender regarding this. If you can convince the lender regarding this, then he may consider a principle reduction.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
As far as I know, it will depend upon your bank whether it will accept a principle reduction on loan modification. You will have to speak to your lender and negotiate with the lender regarding this. If you can convince the lender regarding this, then he may consider a principle reduction.
Feel free to ask if you have further queries.
Sussane
Contacted HSBC today... they said no, not at this time. Interesting, coming from one of the principle instigators of the sub-prime debacle... GMAC sold my first the HSBC, but kept my second... Go figure, the second is now worthless as the property value is $80,000 less that the first, as of today.
Q: Since HSBC took $37 Billion in bailouts, yet refuses to work with clients, I've been told one has to default before you can get their attention? I'm seriously thing of stopping payments on BOTH first and second... Is this the way?
Q: Since HSBC took $37 Billion in bailouts, yet refuses to work with clients, I've been told one has to default before you can get their attention? I'm seriously thing of stopping payments on BOTH first and second... Is this the way?
Hi Disturbed!
Welcome to forums!
A lender does not generally accept a request for a short sale, deed in lieu or loan modification if you are not past due on your payments for at least a month. But I don't think deliberately stopping the mortgage payments will help you. You will have to negotiate with the lender for a short sale, deed in lieu or loan modification and convince about your hardship. If your reasons are not good enough, then the lender will not accept your request.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
A lender does not generally accept a request for a short sale, deed in lieu or loan modification if you are not past due on your payments for at least a month. But I don't think deliberately stopping the mortgage payments will help you. You will have to negotiate with the lender for a short sale, deed in lieu or loan modification and convince about your hardship. If your reasons are not good enough, then the lender will not accept your request.
Feel free to ask if you have further queries.
Sussane
Are Priciple Reductions counted as taxable income? :?:
Welcome David,
Normally, debt forgiveness results in a taxable income. However, depending upon the Mortgage Forgiveness Debt Relief Act in your state, you may not have to pay the taxes.
Normally, debt forgiveness results in a taxable income. However, depending upon the Mortgage Forgiveness Debt Relief Act in your state, you may not have to pay the taxes.
Adonis, do you know if California is one of the states that have Mortgage Forgiveness? I just signed docs for a principle reduction on December 2, 2009. I went from $389,000 to $209,800 on my principle residence at a 5.25% interest rate on a 3 year fixed product.
Hi David!
Welcome to forums!
California does have the Mortgage Forgiveness Debt Relief Act. Check out the given link to know more about it:
http://www.mortgagefit.com/california/debtrelief-act.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
California does have the Mortgage Forgiveness Debt Relief Act. Check out the given link to know more about it:
http://www.mortgagefit.com/california/debtrelief-act.html
Feel free to ask if you've further queries.
Sussane
Thanks Sussane
I have started looking into principle reduction. I live in Las Vegas and have a principle loan of 382,000 and a second at 95,000. I was initially contacted by a loan modification company that lead to principle reduction in stead of a lan modification. My Neighbor's home just sold for 176,000 in auction. Is it legal for the organization to ask for $6000.00 up front to start the principle reduction?Regards
Hi jkrueger,
I don't think it would be a good idea to pay the company $6000.00 up front so that they start the principle reduction. They might be scam artists. Also, are they giving you a guarantee to successfully reduce the principle amount? I don't think so. I would rather suggest you to contact your lender and negotiate for a reduction in your principle balance.
Thanks
I don't think it would be a good idea to pay the company $6000.00 up front so that they start the principle reduction. They might be scam artists. Also, are they giving you a guarantee to successfully reduce the principle amount? I don't think so. I would rather suggest you to contact your lender and negotiate for a reduction in your principle balance.
Thanks