23109, you made your own bed, now you have to sleep on it. We spent months trying to talk you out of it, but you didn’t listen then and you aren’t listening now.
The question on the table is why would the bank choose to lose money on the loans they are making money on, why would they solicit a loss on their entire portfolio? My personal question is why would anyone who didn;t need a rework, take one, they are bad for the owner if you have other alternatives.
The other statement that has yet to be refuted is what is so cool about wrecking your credit and then getting a recourse loan and entering into a rework that is designed to never build equity. The same people on here that wouldn’t dream of an I/O loan are jealous that reworks are getting what amounts to a deal with the devil and a lifetime I/O loan, yet the reworks sell half of their future appreciation in addition to a lifetime I/O. People hear the words “principal reduction” and lose their minds, I repeat, that principal amount never goes away, they just reduce it for purposes of determining payment, they still owe it. It’s like taking on a partner, like going halfsies on a house with a relative.
They never reduce your balance, they just base the payment on a reduced amount, so you pay less per month but the original loan amount haunts you forever. You can never take out a heloc, refi, sell or do anything without settling the original debt, fees, etc. It’s just renting with a lifetime overpriced lease.
The system doesn’t drive anyone anywhere, it fools them, just like teaser rates and 0 down fooled them into thinking they could afford more than they could, this fools them into thinking they can keep what they can’t afford, they can live there but they keep nothing when the ride is over. Look at 10 years from now, they will essentially have nothing after they sell, that is not how I define home ownership.
You may feel like the good guy 23109, and you have the opportunity to be that guy, by paying your mortgage and paying for the mistake that YOU made, not the guy across the street, not the government, not the bank, but the mistake that YOU made. Your eyes were wide open, you knew the risks, no unscrupulous lender lied to you.
It’s not the end of the world, people make worse mistakes all the time. How we behave after we make mistakes is what defines us, I’ve screwed up before and I will again but it will be my fault and I will make amends, you need to as well.
BTW-they wont renegotiate with you, you have an “over the table” job with all your income reported. The best they will do is make your payment .37 of your gross income, if you gross 10k a month, that is 3700, and I believe it is P&I, not inclusive of hoa, tax and ins., so unless you are paying more than 4k, they wont help. From memory, you didn’t put 20% down and I can’t remember if you took a fixed rate fully amortized 30 yr. If you have an adjustable or an I/O you can probably get it switched into a 30 yr fixed for nothing, that is where you can negotiate, however, the payment goes up, not down.
