In the last few weeks I have "been on a roll" getting debt reduced on our house. We settled a $152,000 US second bond on the house with Wells Fargo Bank. We got news that we will get a further $5,000 US principal reduction on the mortgage bond from President Obama.
We looked with great hope to the US Department of Justice settlement withthe five big banks including Bank of America or Wells Fargo. Our house currently has a $600,000 US bond on it. Depending on who you talk to, the house is worth somewhere between $420,000 US and $500,000 US. This means that we stilll have a negative equity between $100,000 US and $180,000 US. We were sure that his settlement would give us a principal reduction in the range of $30,000 US to $100,000 US or a new mortgage bond on the property with an interest rate of around 4% as opposed to the 6.62% rate that we have now.
When nothing was heard from Bank of America I called and talke do them. They said that the only loans that got help were adjustable rate loans that were 60 or more days past due. Our loan is a fixed rate loan that is current.
I believe we will have to increase payments and reduce the debt.
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