Posted on: 11th Oct, 2012 01:21 am
Hello… I will be settling 2nd (HELOC) with Chase for 10%. It was charged off lately. 1st is underwater by 50-55 K. Now I am wondering if my first would be MORE LIKELY to negotiate a principal reduction on my first since there is no PMI. This is not a Freddie or Fannie Mae loan, if that matters. Does no PMI make a difference to them?
Getting principal reduction will be quite difficult. Nevertheless, if you can convince the lender, then you may get qualified for one. If the lender does not agree, then you may get a normal loan modification wherein the lender will lower your rate and increase the term of the loan.
Hi Guest,
No PMI can be considered as a positive thing when you apply for a loan modification. You should contact your lender and check out whether or not he will offer to modify your loan. Unless he is convinced about your financial hardship, he won't consider modifying your loan.
Thanks
No PMI can be considered as a positive thing when you apply for a loan modification. You should contact your lender and check out whether or not he will offer to modify your loan. Unless he is convinced about your financial hardship, he won't consider modifying your loan.
Thanks