Principle Reduction Program

Principal Reduction Program.
Over the past few years there have been many new programs that are there to help homeowners modify their loans so as to make them more affordable. For many folks these would help but my experience is that for the masses they have been difficult and the only people benefiting are the many so called loan originators or brokers who market these products. Now I don't want to scare away people from trying because there are many out there who are decent and ethical and will do anything to help homeowners out. What I want to make folks aware here is a relatively new program that isn't a new mortgage at all. "The Principal Reduction Program" is a process where very large Real Estate Investment companies and Hedge Funds actually combine your mortgage note with those of many other homeowners and offer to buy these packages from the mortgage holder at deeply discounted prices. Now this benefits the mortgage holders or banks because they don't have to maintain such a high capitalization position to cover the lower rated mortgage notes. Now while the Real Estate Investment firms and hedge funds own your note they forgive the negative equity, give it a new 30 year fixed interest of prime plus 3%, currently 6.25%, get them all re-rated and then when they are all shown as proper functioning instruments they are resold back on the secondary market. This is truly a win-win situation for everyone involved. Banks are happy, the investors are happy, and the homeowner is really happy because they now have a mortgage that is in line with the current market value and the monthly payment has been drastically reduced.
Visit us at http://shortrefinanceformyhome.com/ for more details.

Many of these homeowners who are in an upside position are prisoners in their own home. You ask why? Well think of it this way. The market is way down and you have lost 35% of the value of your home. You can't refinance because your upside down and there is no equity. With a mortgage that is now reduced to current market value you are free to make what ever decisions you need to. You can sell, or rent, lease option or whatever you need for your situation.

So let me summarize:
Our Principal Reduction Program is a way for individuals with mortgages that are upside down, to bundle their loans through an intermediary, such as funding companies and use that leverage to negotiate directly with the bank to reduce their mortgages to current market value or below.
This is not a new loan. This is your loan being sold to a private investment group and then that balance reduced proactively by them to your current market value. (CMV)
Mortgages are bought and sold quite frequently after the initial closing, this in essence, is the same thing, with a direct benefit to the homeowner by reducing their balance and indirectly lowering their mortgage payment.
Your loan, after the reduction, is then rebundled with now performing mortgages and resold back to the same investment groups and mortgage backed securities that bought them in the first place.

For even more information you may visit us at http://shortrefinanceformyhome.com , call us at 803-661-2234 or e-mail us at charles@shortrefinanceformyhome.com