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Answers (5)
- JoAnna Jensen, "StopForeclosureFraud"
- Contributions:141
Hi,
There is a PRA MOD Principal Reduction Alternative Modificaiton, the guidelines are:
1) your loan needs to be upside down by at least 115% or more
2) the loan needs to be generated on or before 1/1/09
3) to get the reduction the goal is to get your new mortgage payment to 31% of your gross income. So, if your current monthly payment PITI is already 31% of your gross income you will not get a principal reduction.
You need to know your Net Present Value.
Unless your current on your loan and you want to do a short refinance you may be able to do that but the lender has to approve of reduction of the principal.
The do happen we just got a reduction of $250,000 for our clients rental I was always told it only works for principal residents. But you need to be net present value positive in order to qualify.
There is a PRA MOD Principal Reduction Alternative Modificaiton, the guidelines are:
1) your loan needs to be upside down by at least 115% or more
2) the loan needs to be generated on or before 1/1/09
3) to get the reduction the goal is to get your new mortgage payment to 31% of your gross income. So, if your current monthly payment PITI is already 31% of your gross income you will not get a principal reduction.
You need to know your Net Present Value.
Unless your current on your loan and you want to do a short refinance you may be able to do that but the lender has to approve of reduction of the principal.
The do happen we just got a reduction of $250,000 for our clients rental I was always told it only works for principal residents. But you need to be net present value positive in order to qualify.
- dododad ododdod, "nononoononoddo"
- Contributions:233
Did you hear about the new settlement I would try and get with your lender and see if they can help. Here is the link. Good Luck
U.S. banks agree to $25 billion in homeowner help
http://news.yahoo.com/u-banks-agree-25-billion-homeowner-help-002110826.html
- Georgina OBryan, "GOBryan1"
- Contributions:483
Very few lenders will do true principal (forgiveness) reductions. Many will Defer (balloon) a certain amount of the principal so if you're very upside down, you may want to consider a short sale, if you qualify for one.
In all accounts, a principal reduction is considered a deferral, forgiveness or both.
In all accounts, a principal reduction is considered a deferral, forgiveness or both.
- sunnyview
- Contributions:25139
If what you are hoping for is an offer from the bank to reduce the principle or amount owed on your mortgage, then I think you need to look into other options to keep your home. Banks do not want to do principal reductions for owners and would rather foreclose.
Many companies will promise that they can get owners a principal reduction, but it is so rare that is as a close to a lie as you can get without lying.
It is more likely you could get approval for either a short sale to sell for less then you owe or a loan modification to lower your payment so you can stay in your house. You best bet is to call your lender and ask for help. Do it now before you move toward foreclosure. Before you decide to do a short sale or walk away, get legal advice to get all your options explained.
Many companies will promise that they can get owners a principal reduction, but it is so rare that is as a close to a lie as you can get without lying.
It is more likely you could get approval for either a short sale to sell for less then you owe or a loan modification to lower your payment so you can stay in your house. You best bet is to call your lender and ask for help. Do it now before you move toward foreclosure. Before you decide to do a short sale or walk away, get legal advice to get all your options explained.
- Robert Lowery, "Bob Lowery"
- Contributions:2097
If you can not afford the payments, you can contact your mortgage company and see if you qualify for a loan modification. They are not obligated to modify your loan. If they don't approve, you should contact a local realtor and try to sell the home. If you owe more than the home is worth, I would inquire about a short sale.
how can i get the bank to lower the price on the home i live in and to not go forclosure
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