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Principal Reduction Program
There is no question that the major problem facing the real estate market today is an inordinate amount of upside down properties. Homeowners are stuck in a situation where they have negative equity in their homes, meaning that they owe more on the principal of their home than the property is actually worth.
Loan modifications are not an option for most homeowners. Not only do most lenders necessitate borrowers to be very delinquent on their loan payments, but each lender also has a magic number that homeowners must meet on their debt-to-income ratios. Your lender will not share this number with you; hence, loan modifications are few and far between. The lenders do not have your interests in mind; they meet the minimum standards to comply with federal legislation (if even that).
Accordingly, most property owners are stuck in a situation where they are at a loss for options. If you are on-time with your loan payments or your income is above the lenders threshold, then a loan modification is not an option. If your property is upside down, then traditional short refinancing is not an option. If you want to stay in your home, then a short sale or foreclosure is definitely not an option.
Principal Reduction Programs (a.k.a. "PRPs" or "Mortgage Loan Reductions") have recently come to the forefront as the option for those millions of property owners who have no other options. These Principal Reduction Programs work to reduce the principal of your mortgage to the current market value.
However, because Principal Reduction Programs have only been made available recently through the collaborative effort of federal government TARP (Troubled Asset Relief Program) funds and private investors, finding an appropriate/legitimate Principal Reduction Program to reduce the principal on your mortgage to market value can be difficult.
There are different approaches to Principal Reduction Programs. Many programs wait to find an investor to purchase a homeowner's loan until after bringing the borrower into the program. Other programs will individually negotiate each loan in the program increasing backend associate costs and lowering overall success rate. It is important when choosing a Principal Reduction Program that investors have already been secured, and that there is already a clear backend strategy.
For more information about Atlantic Mutual LLC and our services, please visit http://www.principal-reduction-program.com or http://www.atlantic-mutual.com or call 888-850-6772 to speak to one of our Financial Consultants. We can also be reached via e-mail at info@atlantic-mutual.com. |
in Personal Finance