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Writing down part of a mortgage

Posted on: 14th Mar, 2008 10:03 am
Are the mortgage companies writing down loans to help customers keep there houses? I went through forebearance last year and the only thing it did was raise my monthly payment. will they write down $30,000 of my $130,000 mortage?
Hi srs,

Welcome to the forum.

I think mortgage companies some time write downs a portion of the due principal if the borrower cannot be able to pay the mortgage. So I think you can request your mortgage company to write down a portion of your remaining principal so that you can be able to pay the monthly payments.

Best of luck,
Larry
Posted on: 14th Mar, 2008 11:12 am
Hi Srs,

Welcome to our community forums.

Well the Federal Reserve Chairman Ben Bernanke has asked banks and mortgage companies to write down a portion of the principal so that it can reduce the total balance borrowers need to pay. This will help borrowers repay the loan while continuing to stay in their own homes. But I'm not sure as to which bank or company has started implementing it?

If your lender is willing to write down the loan, then that's good news indeed. :) So, are you comfortable with paying off the remaining balance?

Regards,

Jessica.
Posted on: 15th Mar, 2008 05:17 am
Jessica makes a good point, hopefully your lender is one of the ones who has agreed to this, what is your lenders name, maybe we can do some research for you and see if they are one of the ones that have agreed to this writing down. I wish you luck and hope that you can get things worked out so that you can stay in your home. :D :D :D
Posted on: 15th Mar, 2008 08:21 am
Looks like WF is offering 90% LTV refi but I am curious as to what strings might be attached. My home is 3 years old and is now valued at 130k less than what it was purchased for, I have been thinking about walking away but would really like to find a better option. We both have stable incomes and out credit is in good standings but I'm having a hard time staying in a home that is not even remotely worth what we orig paid.

"mrserrano1@msn.com"

[Link deactivated as per forum rules. Thanks.]
Posted on: 25th Dec, 2008 04:48 pm
Hi ToaBajaPR!

Welcome to forums!

I can understand your situation. A lot of people are facing similar situations. You have mentioned that your have a stable income and your credit is also good. That is really a good to know.

Walking away from the property is not a good option in my opinion. This may lead to the foreclosure of the property which will badly affect your credit. It will lower your credit by 250 points. The lender may even place liens on your other properties if the foreclosure sale leads to a deficient amount.

You can talk to the lender and check out the option of short sale. If the lender accepts a short sale, you will have to give away the property to the lender. He will sell it in the market and recover the debts. If there is a deficient amount, you will have to pay it to the lender. A short sale will lower your credit by 75-100 points. But you should note that a lender will accept a short sale only if you are past due on your payments for at least a month.

Feel free to ask if you have further queries.

Sussane
Posted on: 25th Dec, 2008 09:51 pm
i have a very small mortgage 27k on a property i bought many years ago the bank that i have it lehman is selling off a bunch of loans and asked if i would like to consider paying it off if they give me a discounted principle balance ...they are offering 10% the rate is good 4.5 and I have never been late 10 % is nice but i am not sure that offers enough benefit to take money out elsewhere to pay this off ...this is an investment property
Posted on: 07th Jan, 2009 04:29 pm
Welcome LL,

It will be your discretion whether you want to pay off the loan or not. Check if you can afford to pay it off right now or not. Moreover as the lender has given you an option, you can definitely tell them that you do not want to pay it off right now. They cannot force you to pay off the mortgage.
Posted on: 07th Jan, 2009 10:47 pm
What does 'writing down' the loan mean?
Posted on: 28th Jan, 2009 03:12 pm
Lenders can sometimes reduce your principle balance depending upon the hardships you are facing. This is known as writing down loans.
Posted on: 29th Jan, 2009 01:08 am
Will a mortgage write down effect you credit score?
Posted on: 06th Feb, 2009 05:25 pm
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