You may remember the post I put up about
"Independent Foreclosure Review - PNC Mortgage", it was about a guy who allowed a short sale on his house and what it entailed and how violated he felt when it was all over. Well, here is another angle on the subject. Here is the link to the original post, http://judibleu.typepad.com/blacklidge/2012/01/independent-foreclosure-review-sample-letter.html
It's a sad tale for you. Long term, it's been in the making since 2006. Remember 2006? Times were good, jobs were abundant and houses were selling like hot cakes. We had a great year and, with the help of a little money we inherited, we jumped back into home ownership. The prices were high, but they had been steadily increasing for several years and we were afraid that they would just keep going up and up. After looking at way too many houses, we found a nice one, affordable for the time and in a nice neighborhood. Our Realtor gave no indication of a hint of a problem in the market. This was a full time, experienced Realtor, she had to have an inkling of the future of Tucson real estate.
Flash forward, jobs not so abundant, things not as good, the whole real estate market is in the tank. The house we spent so much on is now worth more than $100,000 less than we paid for it. To hear some people, "that's tough, you pays your money, you take your chances". "Creepy, low lifes weren't qualified, those damn Democrats were just trying to make everyone into a homeowner". Well, after several years, a lot of people who were just trying to have a home are gone, their houses sit empty and neglected or people (investors, some from China) are buying them for pennies on the dollar. In some markets, the city governments are tearing these houses down rather than let them clog up the future of everyone else. The banks and mortgage people are okay, though. Whew! That's the main thing, right? They made money, (lots and lots of money), off the original sales, off the bundling of bad loans, off the folks trying and trying to hold onto their homes. And here we are, paying a huge payment, even through months of unemployment, on a house that will never, ever regain its value, no matter how long we pay on it. Not only that, the years that we spend paying on this thing will never be back. The "investment" is nonexistent and we can never regain the possibility of increasing our net worth because of the upside down state we find ourselves in. So, hey, we don't fit into the "low-life, unqualified" group that everyone mentions and yet we are so upside down that it makes no sense to go on paying the payment. We can't do a "short-sale", we actually put way too much down on it and it would be a huge financial disaster and so dehumanizing and sad that we just keep sitting here, waiting for something to happen. We've been through the Modification route. Something new in the American lexicon, a humiliating, frustrating and totally unfair method of getting the payment down some. I've spoken to people who have had their payment reduced by hundreds of dollars but we got about $100 off per month, and there is no rhyme or reason for how they decide and they don't really care if you don't think it was done right. It took months for this small adjustment and about 1,000 phone calls.
Now comes word from Bank of America that they will be doing Principal Reductions. Other companies have already been doing this; right along with the modification process, but for some reason B of A is just now announcing their intention to do some reductions. I was ready for it; I knew they had to do it, sooner or later. There are 11 million people in the United States with upside down loans and as long as they keep hanging on, the housing market will never recover. So, what's the catch? Of course there is a catch. Wait for it, drum roll..., you had to be 2 months behind on your loan as of last January. What? That's just ridiculous. People who have done everything they can to stay afloat are once again in the position of having to beg, plead and cajole to get anywhere in this mess. Not two months behind going forward, already behind before they made the announcement. Aye, Carumba! Of course, they don't want to make it easy for us, like they did when they sucked us into the house in the first place. Easiest loan I ever got, after owning at least 5 other houses in the past. I guess I'll go plodding along, hoping to hit the right person, on the right day that may want to help me. It makes me tired just thinking of it.