Saxon Mortgage - Loan Modification

[Mike]

Hello Everyone-First of all, this site is a blessing to all and I would just like to say thanks to the moderators and senior members for providing valuable insight for us less knowledgeable home owners.Here is my situation:-My home loan was recently purchased by Saxon from Novastar. -My current outstanding balance on the home is $645k and the comps in the area are $350k (on the high-end).-My loan is scheduled to reset in October.-I recently commenced the loan modification process with Saxon three weeks ago. -During the second conversation with the agent, I was advised that the lender just requested and received a BPO on my property. She also advised that based on the BPO and an interior inspection, they would most likely reduce my principal balance and modify my home rate for 30 years.My question is would the servicer and investor (Morgan Stanley) even consider reducing the principal balance to mirror the current comps in my area? Despite was the agent communication, i find it hard to believe that servicers/investors are willing to reduce the loan by this amount to keep a owner in the home.Thanks for any insight you can provide.