partial mtg payments, any luck?

[endisnear]

Jusy curious if anyone's had any luck with their lender accepting partial payments? Ours is currently $2600 (thats' including taxes and ins) and will go upt to at least $3000 next month once we have to start paying principal on the 1st. We can only afford $1500. DH was going to call and ask tomorrow. Just curious if anyone's done it successfully, or if anyone's been lucky enough to do a principal reduction?????? We are about 120K upside down on the home right now.

[justbroke]

If you've done all the math, and it's in your best interest to keep the property... then You should immediately call and ask for a Loan Modification or a Payment Plan.

With a Modification, you can do many things. First, I'd ask to get the interest rate capped and make it a fixed rate. Then, you can either ask to have the past due payments (arrearages) put into the principal to be paid over time, or make an arrangement to pay the arrearages over time (generally they give you like 4 months for each month you missed).

Otherwise, Mortgage companies can't really deal with partial payments as it messes up their system. (Noting that even if you pay the arrearages over time, the "extra" payment actually goes into a suspense account, until a whole payment is collected, and then applied!)

Wait, if you're $120K upside down, you need to be thinking whether it's worth it to keep it, or to just quit while you can shed $120K of debt now, rather than pay for it over time.

[endisnear]

well we've already gotten a letter from them that they're fixing our rate for the next 5 years, but we are currently interest only and will have to start paying the interest on the 1st next month. We were just really hoping for an indefinate modification, like a principal reduction to what the house is worth now....a short refi i guess you could call it. We are current on all payments, this is the 1st month we can't pay in full. From what i've heard a lot of lenders would rather take the home then negotiate, as it looks better on their books???

[r.m]

Just curious if anyone's done it successfully, or if anyone's been lucky enough to do a principal reduction?????? We are about 120K upside down on the home right now. .

Even if they do take your partial payments, collection activity will not be halted, and most likely they will put them into a suspense account.

If you send them, they'll probably be returned.

If you can't afford it, just set aside what money you DO have to put towards it until you figure out how this is going to work out for you.

Okay, so how do you owe 120k more than what it's worth. Was it b/c you purchased at the market peak or did you pull equity out?

If it's the former, you might... *might* get a principal reduction.

Despite the fact that this is the latest buzzword, it's happening only in rare circumstances.

And in case you were wondering the program du jour from Fannie and Freddie will not involve principal writedowns, they'll only be offering deferrals... which is a sucker's bet for homeowners that think home prices are going to improve in the next decade.

[StartingOver08]

Even if they do take your partial payments, collection activity will not be halted, and most likely they will put them into a suspense account.

If you send them, they'll probably be returned.

If you can't afford it, just set aside what money you DO have to put towards it until you figure out how this is going to work out for you.

Okay, so how do you owe 120k more than what it's worth. Was it b/c you purchased at the market peak or did you pull equity out?

If it's the former, you might... *might* get a principal reduction.

Despite the fact that this is the latest buzzword, it's happening only in rare circumstances.

And in case you were wondering the program du jour from Fannie and Freddie will not involve principal writedowns, they'll only be offering deferrals... which is a sucker's bet for homeowners that think home prices are going to improve in the next decade.

Have to agree with r.m. on this one. If you are upside down $120k and can't make the payments then surrendering the house is probably your best bet. It is easier to COMPLETELY RECOVER if you don't have a $120,000 debt you are trying to overcome.

[getmeoutofhere]

Loan Mod

Here is what we are trying to do....

First mortgage is with First Horizon at $525,000. Second is with GMAC at $150,000. Just had house appraised at $385,000. We are lien stripping the second thru a Chapter 11. We are "renegotiating" the first to "market". My attorney has done several of these successfully and thinks we can pull this off. The logic? Keeping a client with a proven pay history in the home. Avoids costly foreclosure and then auction at who knows what price...$200k? $225? Our neighbors house, same model, went for $169K at auction.

[endisnear]

Hmmm, that sounds like something to look into....Are C11 just for business, or also for personal? And yes we bought at the peak, an 80/20 purchase money loan, so if we were to lose it, we wouldn't be liable for the deficiancy.

[justbroke]

Hmmm, that sounds like something to look into....Are C11 just for business, or also for personal? And yes we bought at the peak, an 80/20 purchase money loan, so if we were to lose it, we wouldn't be liable for the deficiancy.

There is a "Personal" Chapter 11. I could end up in one if my Plan doesn't get Confirmed real soon.

However, they are more complex; they cost a lot more; and, your creditors get to Vote on your Plan of Reorganization. (Okay, I made it sound real bad, but it could actually be beneficial as it's not as restrictive as to the period of Reorganization like a Chapter 13 is.)