second time im typing hope i am doing it right my question is there is a program that the y modify your loan base on the present value of tour house not of what you own . i own 240000 and the value now is 150000 can i redo the modification
There is never a guarantee of principal reduction as part of a mortgage modifidcation. The simple reason why is because nowhere in your mortgage contract does it say the the bank takes responsibility for the value of your home. It’s not about what the house is worth, but how much money you borrowed.
That having been said, we are seeing more instances of principal reduction now than in the past. But just as with any other modification, there are many factors that come into play, including the investor’s guidelines for modification, the type of loan you have and so on, not just the market value of the home.
So while we do frequently see principal reductions as a part of modifidcations, the only way to know if you would qualify for principal reduction is to submit a modification proposal.