Any experience on getting mortgage principle reduced???

[doodadem]

Hi all.....
Still going thru the continuing saga of legal morass from husband of 26 years taking off with everything I owned while I was in intensive care in the hospital last June, and subsequent divorce, bankruptcy, foreclosure, etc etc.

Actually, things are looking up, even though I only have $8 in the bank at the moment. Divorce hearing next month where have reasonable expectation of getting most of my stuff and money back from the ex, along with spousal support (even under Calif's sucky community property laws, you don't get to take off with all the assets and leave the other person with just the bills). Bankruptcy is done with, except for nasty neighbor long-term lawsuit still thinking they can pick something off of my corpse (their judgment was discharged in the bankruptcy), and bank has agreed to wait till APRIL to give me time to go thru hearing and see how much I'm going to get in support. Astounding, and I can only credit Senator Barbara Boxer's office for pulling that one out of the fire--Freddie Mac was ready to auction my farm off on the courthouse steps right after Christmas.

SO......here's my question: Anyone with any experience in getting their actual principle reduced when renegotiating their mortgage under the Making Home Affordable program? I am determined to hang onto my farm, but its a good bit underwater now. The new man in my life is telling me I should negotiate to at least get all the late charges and fees from the past year taken off. Any one done this? Any info out there on doing it?
thanks

[BlueCheese]

1. I'm sorry... I don't know.

I did want to say that I'm sorry for what's happened to you and best of luck dealing with the future. You sound like you have a lot of inner strength.

[Yo_Mama]

2. Sorry for what's happened to you.

Maybe some of this will be some help.

This link is to a brochure for counselors, but I think it might get you started on the right track:
https://www.hmpadmin.com/portal/resources/docs/counselor/presentations/mhacounselorpresenglish.pdf

To qualify for HAMP your first mortgage payment plus taxes and insurance must be greater than 31% of your income. Obviously, you can't see if you qualify until you know what your income will be.

You also might be qualified for UP, which is temporary, if you are not working and it takes a while for your income stream to start.

You are not going to get principal forgiveness unless your farm is worth far less than your mortgage balance (including all the late fees, etc). If you are that far underwater (total mortgage balance more than 115% of farm value), then you can apply for principal forgiveness.

If not, then you go into HAMP. The first thing they will do is try to capitalize (add to principal balance) your outstanding taxes, insurance and interest. But they are supposed to knock off late payment fees. Then they cut your interest rate. Then they can extend the term. They continue down the list until they get your mortgage payment to 31% of your income.

It is important to understand that the servicer is only required to modify if the NPV test is positive. What that means is that the servicer is not required to modify your loan unless it would be more profitable to do so for the investor (whoever owns the loan) than foreclosing.

The NPV test will generally only be positive if you owe more on the property than the property can be sold for net (after deducting costs). Therefore, if you have equity in the property, your best option is to go for the low cost refinance, but to do so you may have to get back current by making a big payment, which you may or may not be able to do.

Who is your servicer, and do you know who owns your mortgage?

Best of luck in court.

[MrsBrady]

3. here's what I would do

call the head of the democratic party in your area/county. Somebody local.

Ask them who is somebody they might know that could help you with something like that...
or if somebody in Barbara Boxer's office helped you, they probably know how to help you with this as wel.

One time I asked the head of my local county party who I could talk to about a legal matter before we signed some papers.

we thought about suing, but didn't...another story for another time...(anyway)

he happened to be a lawyer, and he spend 20 minutes on the phone with us several days later. no charge. after looking over the papers I had scanned and emailed him.