Principal reduction program--for those who are underwater or upside down on their mortgage.?
Any info would be appreciated
- ca_surveyorLv 710 years agoFavourite answer
A major uphill action.
Most banks offer a reduced payment, perhaps a reduction in interest or no interest, for a fixed period of time (for you to recover).. then it goes back up.
A few offer a permanent reduction of the payment and amount but that is based on a period of regular payments.
.You need to call your lender and find out what their best offer is.
- acermillLv 710 years ago
That isn't going to happen. While the lender may work with you on reduced interest rates, lowered payments, or extension of the life of the loan, they are not going to reduce the amount you owe simply because your house is worth less than you owe. If you borrowed $200K from the lender, it expects that principal plus interest to be paid back.
- wanttoknow25Lv 410 years ago
That will not happen. The loan modifications won't happen for you. your options are to sell the house at a loss and pay the difference, ask to lender to approve a short sale, or keep making the monthly mortgage payments they are not going to reduce your principal.
- Genuine GuidanceLv 710 years ago
Call your lender and ask for the loss mitigation dept. Getting your principal reduced is not common, and most likely, you will not be able to do this. Why would the bank want to lower the amount you borrowed just to suit you?
- What do you think of the answers? You can sign in to give your opinion on the answer.
- ?Lv 710 years ago
The Lender NEVER reduces the principle only the interest rate and lengthens the time of the loan