Has anyone gotten a mortgage reduction that deserves it?

[Momma_bear]

Originally Posted by NYMD67

We have SOME money to bring to closing, but not alot...
How much money would anyone else who is in their early 40's have to bring to the table? curious...
We have been paying for 2 houses for 18 months in addition to everything else.... just wondering how long other people in their early 40's think they would be able to continue paying for all of this in addition to having to bring a significant amount of money to the table at closing....

I only ask because that is what the bank will look at. If they do approve a short sale they will not just let you walk if you have significant assets and in my state (FL) they have a significant amount of time to collect a deficiency judgment against you. I am assuming from your posts that you have significant income or you would never have been able to carry two homes in the first place.

I suggested in an earlier post that your hire a lawyer to work for you. I realize your reluctance to spend more money on this home but I do think that it would help you in particular.

As for our particular situation, we do not need to bring money to closing when we sell our house but we intend to put down $200K on the house. We have around $200K in home equity and another $300 in cash assets. We are very conservative with our money. I would never have purchased a second home without selling the first one, even if I had to sell it at a loss.

Why can't you rent it out? I realize that you probably can't cover your mortgage but getting a few thousand a month would surely help.

[SmartMoney]

Chances are if you got a modification, the bank is getting incentives from the government. There are at least two major programs where the banks can file for cash awards for providing modifications as a first trust lien holder and a second trust lien holder.

Everyone has touched and danced around the crux of why I have changed my attitude towards modifications. Had we let the banks fail, the banks that made the bad lending decisions go down the tubes, I would not be supportive of any workouts. But the banks did use taxpayer money, they did get a loan when they were going under, when they were on the brink of failure. Why should business be treated better than the citizen's of this country?

[mortimer]

Just to be clear, the banks don't own your mortgage. If you default,
if you don't pay, if you walk away, they don't lose anything. I've read
articles saying that they make more money in fees because they get
to charge the investor for servising a repossession. I believe it.

It was sold to an "investor." The investor decides whether you can
get a loan modification or not, not the bank. The bank is the servicer
of the loan. The bank gets a fee for "servicing" a loan modification, but
the investor has to decide whether to grant the borrower a modification.

Banks aren't even "banks" any more.

What I don't get, is why there are still loans out there that are charging
way over six percent after all that has happened. All those 7%, 8% loans,
etc should be re-set at market rates near 5% forever.