Principal Reduction Loan Modification
Loan modification principal reductions and bankruptcy cramdowns
With falling property values, many borrowers want to negotiate a principal reduction loan modification with their lender or get the courts to force the lender to reduce mortgage principal with a bankruptcy cramdown.
Here are a collection of posts regarding the efforts being made and the challenges of negotiation a principal reduction or bankruptcy cramdown.
Q&A on Principal Reductions
News Items on Principal Reductions
- URGENT! WATCH THIS VIDEO: Forcing banks to approve loan modifications – including principal reductions – may be unexpected blessing from robo-signing foreclosure document scandal
- Bank of America planning more principal reductions to qualified homeowners
- Lenders may be forced to use principal reductions as foreclosures rise
- Study reveals most successful loan modifications reduce principal
- FDIC Chairman Sheila Bair wants to force banks to reduce principal for homeowners on brink of foreclosure
- U.S. House rejects mortgage cramdown measure
Video Q&A Coaching Segment Discusses Latest Trends In Principal Reductions
FYI: This was taped prior to the news regarding “robo-signing” foreclosure documents
Loan modification expert, Mike Rockwood, and author of the loan modification workbook I recommend, discusses principal reduction trends and programs offered by Bank of America and Wells Fargo in this video Q&A segment.
If you are not in the target group the banks are working with on principal reductions, you may consider using a hammer to motivate your loan servicer to negotiate with you, namely, a mortgage or forensic audit. This audit will document federal and state violations committed by the lender on your loan.
There are independent forensic auditors you can hire or a foreclosure defense attorney will likely have someone in their Rolodex.
Don’t Be a Victim
With the challenges in getting even a trial loan modification approved, you should be pro-active with your approval process. This would include staying in control of the process (in other words, don’t give your money or power away to a loan modification company or attorney – who can’t guarantee you a thing) – and getting informed and educated on:
- What type of borrowers are getting moved to the front of the line and getting priority
- How to put together a loan modification package that will get approved quickly
- How to overcome stall tactics, rejection and denials the banks and loan servicers are using to run out the clock
- How to protect yourself from getting your home sold out from under you by the lender during the approval process and the trial modification process.
Learn how to force your lender to reduce the principal balance or settle a 2nd for pennies on the dollar or nothing at all using the strategies and tools I reveal in a special report I have for you. Click on the banner below for all the details.
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