[cabal]

[quote=PowayDude]
I am familiar with a company that does balance reductions. I can tell you that deeds of reconveyance are recorded for all paid off/forgiven liens. Also, many times the amount of the balance reduction is determined by current appraisals and the new balance basically leaves the borrower with a minimal equity position.

[/quote]

For a principal reduction, my guess is the modification is recorded as a “Modified Agreement”. Another example of this kind of recording is if the limits of an existing heloc are changed. You should only see Reconveyance if the entire balance is satisfied either through forgiveness or sale. My question is will the homeowner get stuck with a 1099 similar to a short sale.

Powaydude – It is interesting that the amount of reduction is based on current appraisal/comps, rather than what the homeowner can afford. This would help explain why many modifications continue to redefault. Your comment of leaving the homeowner with a minimal equity position need clarification as it implies only equity loss and no need for balance reduction.

[cabal]

With any generation there are always a set of issues that seem to foreshadow the end of the world. That has been the case since the birth of this nation and somehow, we always manage to adapt, survive, and ultimately prosper. This current crisis is no different. In 20 years, all of this nonsense will have been forgotten, everyone on this board will have survived, and the next generation will be complaining about something else. So calm down, notice it’s a another beautiful sunny day in SD, notice your wife and kids are happy and beautiful, have a beer and go watch football.

Regarding the UC student diatribe, my response is anyone attending UC should feel extremely fortunate. All UC campuses except Merced are ranked in the top 100 nationwide. Admission rates into the flagship campuses of UCB and UCLA are in the 20% range with typical GPAs of 4.3 and SAT well above 2000. Academic reputation, research, rigor, etc. are all top notch on par with the Ivys and other elite institutions, yet the average annual tuition is still at the incredible bargain price of around 8K (25K all inclusive). Unless they choose a major like Philosophy, most of these kids will eventually secure a well paying job. While the timing for the proposed 30% tuition hike couldn’t be worse, one needs to keep in mind that the life cycle return on their educational investment is unbeatable by any measure. If any of the protesting UCLA students wish to give up their admission spot, I guarantee you that there are 100 waiting in line willing to pay double.

[cabal]

With any generation there are always a set of issues that seem to foreshadow the end of the world. That has been the case since the birth of this nation and somehow, we always manage to adapt, survive, and ultimately prosper. This current crisis is no different. In 20 years, all of this nonsense will have been forgotten, everyone on this board will have survived, and the next generation will be complaining about something else. So calm down, notice it’s a another beautiful sunny day in SD, notice your wife and kids are happy and beautiful, have a beer and go watch football.

Regarding the UC student diatribe, my response is anyone attending UC should feel extremely fortunate. All UC campuses except Merced are ranked in the top 100 nationwide. Admission rates into the flagship campuses of UCB and UCLA are in the 20% range with typical GPAs of 4.3 and SAT well above 2000. Academic reputation, research, rigor, etc. are all top notch on par with the Ivys and other elite institutions, yet the average annual tuition is still at the incredible bargain price of around 8K (25K all inclusive). Unless they choose a major like Philosophy, most of these kids will eventually secure a well paying job. While the timing for the proposed 30% tuition hike couldn’t be worse, one needs to keep in mind that the life cycle return on their educational investment is unbeatable by any measure. If any of the protesting UCLA students wish to give up their admission spot, I guarantee you that there are 100 waiting in line willing to pay double.

[cabal]

With any generation there are always a set of issues that seem to foreshadow the end of the world. That has been the case since the birth of this nation and somehow, we always manage to adapt, survive, and ultimately prosper. This current crisis is no different. In 20 years, all of this nonsense will have been forgotten, everyone on this board will have survived, and the next generation will be complaining about something else. So calm down, notice it’s a another beautiful sunny day in SD, notice your wife and kids are happy and beautiful, have a beer and go watch football.

Regarding the UC student diatribe, my response is anyone attending UC should feel extremely fortunate. All UC campuses except Merced are ranked in the top 100 nationwide. Admission rates into the flagship campuses of UCB and UCLA are in the 20% range with typical GPAs of 4.3 and SAT well above 2000. Academic reputation, research, rigor, etc. are all top notch on par with the Ivys and other elite institutions, yet the average annual tuition is still at the incredible bargain price of around 8K (25K all inclusive). Unless they choose a major like Philosophy, most of these kids will eventually secure a well paying job. While the timing for the proposed 30% tuition hike couldn’t be worse, one needs to keep in mind that the life cycle return on their educational investment is unbeatable by any measure. If any of the protesting UCLA students wish to give up their admission spot, I guarantee you that there are 100 waiting in line willing to pay double.

[cabal]

With any generation there are always a set of issues that seem to foreshadow the end of the world. That has been the case since the birth of this nation and somehow, we always manage to adapt, survive, and ultimately prosper. This current crisis is no different. In 20 years, all of this nonsense will have been forgotten, everyone on this board will have survived, and the next generation will be complaining about something else. So calm down, notice it’s a another beautiful sunny day in SD, notice your wife and kids are happy and beautiful, have a beer and go watch football.

Regarding the UC student diatribe, my response is anyone attending UC should feel extremely fortunate. All UC campuses except Merced are ranked in the top 100 nationwide. Admission rates into the flagship campuses of UCB and UCLA are in the 20% range with typical GPAs of 4.3 and SAT well above 2000. Academic reputation, research, rigor, etc. are all top notch on par with the Ivys and other elite institutions, yet the average annual tuition is still at the incredible bargain price of around 8K (25K all inclusive). Unless they choose a major like Philosophy, most of these kids will eventually secure a well paying job. While the timing for the proposed 30% tuition hike couldn’t be worse, one needs to keep in mind that the life cycle return on their educational investment is unbeatable by any measure. If any of the protesting UCLA students wish to give up their admission spot, I guarantee you that there are 100 waiting in line willing to pay double.

[cabal]

With any generation there are always a set of issues that seem to foreshadow the end of the world. That has been the case since the birth of this nation and somehow, we always manage to adapt, survive, and ultimately prosper. This current crisis is no different. In 20 years, all of this nonsense will have been forgotten, everyone on this board will have survived, and the next generation will be complaining about something else. So calm down, notice it’s a another beautiful sunny day in SD, notice your wife and kids are happy and beautiful, have a beer and go watch football.

Regarding the UC student diatribe, my response is anyone attending UC should feel extremely fortunate. All UC campuses except Merced are ranked in the top 100 nationwide. Admission rates into the flagship campuses of UCB and UCLA are in the 20% range with typical GPAs of 4.3 and SAT well above 2000. Academic reputation, research, rigor, etc. are all top notch on par with the Ivys and other elite institutions, yet the average annual tuition is still at the incredible bargain price of around 8K (25K all inclusive). Unless they choose a major like Philosophy, most of these kids will eventually secure a well paying job. While the timing for the proposed 30% tuition hike couldn’t be worse, one needs to keep in mind that the life cycle return on their educational investment is unbeatable by any measure. If any of the protesting UCLA students wish to give up their admission spot, I guarantee you that there are 100 waiting in line willing to pay double.

[cabal]

[quote=analyst][quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.[/quote]

I agree with Analyst. USAA can choose to wait until there is sufficient equity to foreclose via market rebound, 1st mortgage principal reduction, or some combination of both. Folding in penalties, fees, and the unprecedented lack of confidence in the housing market, the OP will probably never realize any future appreciation especially with a 40 yr loan. The only viable option wrt to the 2nd is to try and settle.

Regarding the loan mod on the 1st from 7%? to 4.8%, I’m not sure I would have accept it. The $600 monthly reduction is due to both lower rate and term extension from 30 to 40 years, with probably $400-$450 attributed to the rate reduction. This permanent benefit is balanced against the hit to the FICO, maybe 150 points since they probably reported it 90 days late, which I understand is much more severe than 30 or 60 days late. Probably worth it if nesting long term. Did you try to get them to report your payments current even with a loan mod?

I’m pretty sure lenders have many internal loan modification programs and the Obama home preservation plan is just one option. For example, the 729K upper limit on loan mod is nonsense as I know several people with 1M+ loan balances that received modifications. What I didn’t know was that a non-distressed homeowner (with PITI to gross less than 31%) can also qualify as evidenced by the OP. This takeaway is quite shocking and it means anyone can theoretically get a loan mod.

[cabal]

[quote=analyst][quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.[/quote]

I agree with Analyst. USAA can choose to wait until there is sufficient equity to foreclose via market rebound, 1st mortgage principal reduction, or some combination of both. Folding in penalties, fees, and the unprecedented lack of confidence in the housing market, the OP will probably never realize any future appreciation especially with a 40 yr loan. The only viable option wrt to the 2nd is to try and settle.

Regarding the loan mod on the 1st from 7%? to 4.8%, I’m not sure I would have accept it. The $600 monthly reduction is due to both lower rate and term extension from 30 to 40 years, with probably $400-$450 attributed to the rate reduction. This permanent benefit is balanced against the hit to the FICO, maybe 150 points since they probably reported it 90 days late, which I understand is much more severe than 30 or 60 days late. Probably worth it if nesting long term. Did you try to get them to report your payments current even with a loan mod?

I’m pretty sure lenders have many internal loan modification programs and the Obama home preservation plan is just one option. For example, the 729K upper limit on loan mod is nonsense as I know several people with 1M+ loan balances that received modifications. What I didn’t know was that a non-distressed homeowner (with PITI to gross less than 31%) can also qualify as evidenced by the OP. This takeaway is quite shocking and it means anyone can theoretically get a loan mod.

[cabal]

[quote=analyst][quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.[/quote]

I agree with Analyst. USAA can choose to wait until there is sufficient equity to foreclose via market rebound, 1st mortgage principal reduction, or some combination of both. Folding in penalties, fees, and the unprecedented lack of confidence in the housing market, the OP will probably never realize any future appreciation especially with a 40 yr loan. The only viable option wrt to the 2nd is to try and settle.

Regarding the loan mod on the 1st from 7%? to 4.8%, I’m not sure I would have accept it. The $600 monthly reduction is due to both lower rate and term extension from 30 to 40 years, with probably $400-$450 attributed to the rate reduction. This permanent benefit is balanced against the hit to the FICO, maybe 150 points since they probably reported it 90 days late, which I understand is much more severe than 30 or 60 days late. Probably worth it if nesting long term. Did you try to get them to report your payments current even with a loan mod?

I’m pretty sure lenders have many internal loan modification programs and the Obama home preservation plan is just one option. For example, the 729K upper limit on loan mod is nonsense as I know several people with 1M+ loan balances that received modifications. What I didn’t know was that a non-distressed homeowner (with PITI to gross less than 31%) can also qualify as evidenced by the OP. This takeaway is quite shocking and it means anyone can theoretically get a loan mod.

[cabal]

[quote=analyst][quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.[/quote]

I agree with Analyst. USAA can choose to wait until there is sufficient equity to foreclose via market rebound, 1st mortgage principal reduction, or some combination of both. Folding in penalties, fees, and the unprecedented lack of confidence in the housing market, the OP will probably never realize any future appreciation especially with a 40 yr loan. The only viable option wrt to the 2nd is to try and settle.

Regarding the loan mod on the 1st from 7%? to 4.8%, I’m not sure I would have accept it. The $600 monthly reduction is due to both lower rate and term extension from 30 to 40 years, with probably $400-$450 attributed to the rate reduction. This permanent benefit is balanced against the hit to the FICO, maybe 150 points since they probably reported it 90 days late, which I understand is much more severe than 30 or 60 days late. Probably worth it if nesting long term. Did you try to get them to report your payments current even with a loan mod?

I’m pretty sure lenders have many internal loan modification programs and the Obama home preservation plan is just one option. For example, the 729K upper limit on loan mod is nonsense as I know several people with 1M+ loan balances that received modifications. What I didn’t know was that a non-distressed homeowner (with PITI to gross less than 31%) can also qualify as evidenced by the OP. This takeaway is quite shocking and it means anyone can theoretically get a loan mod.

[cabal]

[quote=analyst][quote=23109VC]

but I do have the option to just stiff them, quit paying and effectively, they have no recourse. either they will settle with me or they will just sell my note to a collections dept and I will get hounded by them.[/quote]

Your list of USAA alternatives is incomplete. USAA has the third alternative of continuing your loan unaltered.

If the loan is sold, the new owner of the loan gains more than just the right to pester you with phone calls.

In either case, your debt will continue to grow with accrued unpaid interest. You will be unable to sell the house without dealing with the owner of the second. If you stay a long time and pay down the first, the second will remain in force, and will no longer be worthless.

While it is common to escape a second via bankruptcy, foreclosure, or short sale, you should not expect to do so otherwise.

—–

USAA has been my insurance company for 40 years. It is run by ex-military officers and serves the military community, and their extended families. Don’t expect USAA to operate by the same code as other companies.

Over 40 years, I have occasionally explored other companies offerings, and always found USAA’s to be substantially better. Don’t underestimate the future value of doing business with USAA.[/quote]

I agree with Analyst. USAA can choose to wait until there is sufficient equity to foreclose via market rebound, 1st mortgage principal reduction, or some combination of both. Folding in penalties, fees, and the unprecedented lack of confidence in the housing market, the OP will probably never realize any future appreciation especially with a 40 yr loan. The only viable option wrt to the 2nd is to try and settle.

Regarding the loan mod on the 1st from 7%? to 4.8%, I’m not sure I would have accept it. The $600 monthly reduction is due to both lower rate and term extension from 30 to 40 years, with probably $400-$450 attributed to the rate reduction. This permanent benefit is balanced against the hit to the FICO, maybe 150 points since they probably reported it 90 days late, which I understand is much more severe than 30 or 60 days late. Probably worth it if nesting long term. Did you try to get them to report your payments current even with a loan mod?

I’m pretty sure lenders have many internal loan modification programs and the Obama home preservation plan is just one option. For example, the 729K upper limit on loan mod is nonsense as I know several people with 1M+ loan balances that received modifications. What I didn’t know was that a non-distressed homeowner (with PITI to gross less than 31%) can also qualify as evidenced by the OP. This takeaway is quite shocking and it means anyone can theoretically get a loan mod.

[cabal]

Here’s the Pigg thread that eventually trolled me into finally joining.

http://piggington.com/ot_your_take_on_creationism_0

Frankly, I was shocked that even 8 out of 92 respondents were firm believers in creationism given the fact based analytical nature of Pigg posters. I thought the results would be more like 1 out of 92. No doubt the numbers will be higher applied to the whole country as areas like the bible belt weigh in. I suspect the number of bible thumpers are more than one thinks, some blatant while the silent majority stay polite and measured.

It is true there are lot’s of highly educated successful professionals that attend church on a regular basis. I see and socialize with them when I attend, and I attend primarily for the pragmatic sermons which helps one to live a positive and productive life. While most churchgoers would agree dinosaurs did not live 9000 years ago, most if not all will say Jesus is the true Son of God inferring a supernatural element. I’ve always wondered how many self proclaimed, western educated Christians truly believe this deep down inside. It’s one thing to claim in the belief of an animating force a la Deism, it’s quite another to presume God decided to single out this insignificant planet among the billions in this galaxy to have his presence known. Before anyone tries to save me from eternal damnation, know that I endured 12 years of Catholic school.

To this day, I personally still don’t know what to believe. I do know that in 1000 years when we make contact with an advanced life form, we need to keep the religious representatives out of the welcome committee. Telling our new friends to accept Jesus as their savior might result in a Ray Gun shoved up our worthless asses.

[cabal]

Here’s the Pigg thread that eventually trolled me into finally joining.

http://piggington.com/ot_your_take_on_creationism_0

Frankly, I was shocked that even 8 out of 92 respondents were firm believers in creationism given the fact based analytical nature of Pigg posters. I thought the results would be more like 1 out of 92. No doubt the numbers will be higher applied to the whole country as areas like the bible belt weigh in. I suspect the number of bible thumpers are more than one thinks, some blatant while the silent majority stay polite and measured.

It is true there are lot’s of highly educated successful professionals that attend church on a regular basis. I see and socialize with them when I attend, and I attend primarily for the pragmatic sermons which helps one to live a positive and productive life. While most churchgoers would agree dinosaurs did not live 9000 years ago, most if not all will say Jesus is the true Son of God inferring a supernatural element. I’ve always wondered how many self proclaimed, western educated Christians truly believe this deep down inside. It’s one thing to claim in the belief of an animating force a la Deism, it’s quite another to presume God decided to single out this insignificant planet among the billions in this galaxy to have his presence known. Before anyone tries to save me from eternal damnation, know that I endured 12 years of Catholic school.

To this day, I personally still don’t know what to believe. I do know that in 1000 years when we make contact with an advanced life form, we need to keep the religious representatives out of the welcome committee. Telling our new friends to accept Jesus as their savior might result in a Ray Gun shoved up our worthless asses.

[cabal]

Here’s the Pigg thread that eventually trolled me into finally joining.

http://piggington.com/ot_your_take_on_creationism_0

Frankly, I was shocked that even 8 out of 92 respondents were firm believers in creationism given the fact based analytical nature of Pigg posters. I thought the results would be more like 1 out of 92. No doubt the numbers will be higher applied to the whole country as areas like the bible belt weigh in. I suspect the number of bible thumpers are more than one thinks, some blatant while the silent majority stay polite and measured.

It is true there are lot’s of highly educated successful professionals that attend church on a regular basis. I see and socialize with them when I attend, and I attend primarily for the pragmatic sermons which helps one to live a positive and productive life. While most churchgoers would agree dinosaurs did not live 9000 years ago, most if not all will say Jesus is the true Son of God inferring a supernatural element. I’ve always wondered how many self proclaimed, western educated Christians truly believe this deep down inside. It’s one thing to claim in the belief of an animating force a la Deism, it’s quite another to presume God decided to single out this insignificant planet among the billions in this galaxy to have his presence known. Before anyone tries to save me from eternal damnation, know that I endured 12 years of Catholic school.

To this day, I personally still don’t know what to believe. I do know that in 1000 years when we make contact with an advanced life form, we need to keep the religious representatives out of the welcome committee. Telling our new friends to accept Jesus as their savior might result in a Ray Gun shoved up our worthless asses.

[cabal]

Here’s the Pigg thread that eventually trolled me into finally joining.

http://piggington.com/ot_your_take_on_creationism_0

Frankly, I was shocked that even 8 out of 92 respondents were firm believers in creationism given the fact based analytical nature of Pigg posters. I thought the results would be more like 1 out of 92. No doubt the numbers will be higher applied to the whole country as areas like the bible belt weigh in. I suspect the number of bible thumpers are more than one thinks, some blatant while the silent majority stay polite and measured.

It is true there are lot’s of highly educated successful professionals that attend church on a regular basis. I see and socialize with them when I attend, and I attend primarily for the pragmatic sermons which helps one to live a positive and productive life. While most churchgoers would agree dinosaurs did not live 9000 years ago, most if not all will say Jesus is the true Son of God inferring a supernatural element. I’ve always wondered how many self proclaimed, western educated Christians truly believe this deep down inside. It’s one thing to claim in the belief of an animating force a la Deism, it’s quite another to presume God decided to single out this insignificant planet among the billions in this galaxy to have his presence known. Before anyone tries to save me from eternal damnation, know that I endured 12 years of Catholic school.

To this day, I personally still don’t know what to believe. I do know that in 1000 years when we make contact with an advanced life form, we need to keep the religious representatives out of the welcome committee. Telling our new friends to accept Jesus as their savior might result in a Ray Gun shoved up our worthless asses.

[Author]

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