Unconventional Mortgages and Loans

We’ve been a lot of loan modifications lately. We do a lot of evaluations and negotiate a lot of case files. Now, we work with a lot of very nice folks that are grateful when they receive some relief from their housing payment while getting them current and out of default. Whew!..huge mouthful..

Often, because of the market, people feel that they’re entitled to a principle reduction and fortunately, on occasion, we are able to accommodate. But way more times than not, especially when their servicer is Bank of America, Wells Fargo, Indy Mac, GMAC or Chase, it doesn’t happen. Some people are only interested if we can negotiate a reduction on their principle balance and if they don’t get it, they bail from their home. In some cases, these are the same people who back in the housing glory days, cash-out refinanced their equity to consolidate their consumer and credit card debt or whatever else like there wouldn’t be any consequences. To these folks I ask, back when your house was appreciating 15-30% every year, did your bank call you and ask to increase your balance because of the market?