Mortgage Principal Reduction

J.P.Morgan Chase says no mortgage principal reductions!

Larry Potter — Wed, 21 Apr 2010 12:29:47 +0000

It appears that David Lowman, J.P. Morgan Chase’s CEO for Home Lending feels it was alright for banking companies to have received huge amounts of our tax dollars to bailout those institutions, but when it comes to helping the homeowners who are now upside down with their mortgages (owe more than their property is worth), it’s a completely different story.

He thinks mortgage principal reduction would be wrong for investors, homeowners and the mortgage market in the future. His approach is to seek loan modifications where the homeowner would get a lower monthly payment, but still be making payments on a property that is not worth what it once was. If they can make their current payments, they should continue to pay. If they owe $200,000 on a house that is only worth $140,000, well too bad, you get no relief.

Funny how the banks got their money and continue to hand out big bonuses while the average Joe is stuck with an overpriced home. It seems to us that everyone should be able to have their home re-appraised based on the current market which would help people keep their homes and stabilize the surounding market.

Larry G Potter

Pres, KIM-LAR INC.

Homeowners aggressively seek mortgage principal reduction.

Larry Potter — Mon, 19 Apr 2010 17:08:27 +0000

Many people who own home are now resorting to more intensive actions to get a mortgage principal reduction.

A lot of homeowners have been taken advantage of with outright mortgage fraud and illegal contracts, especially over the last five years or so.

Now with the economy in the toilet and the government making it worse with unbridled spending, these homeowners are swimming upstream in an effort to keep their families housed.

Some have sought loan modifications but normally end up owing the same amount of money with a lower payment. This might be fine if they still did not owe more than their property is worth, but the majority of them are upside down. They might have paid for a house that was worth $250,000 a few years ago, but now find they are still paying on the same house that is now only worth $190,000

The wise homeowners are now seeking companies that can help them obtain mortgage principal reduction where they obtain a new mortgage based on only 90% of the current market value with the other 10% being their new equity stake in the house.

Larry G Potter

Pres, KIM-LAR INC.

Mortgage Principal Reduction Is Relatively New…

Larry Potter — Mon, 12 Apr 2010 13:29:08 +0000

The Mortgage Principal Reduction program is a relatively new program where a very large hedge fund actually combines your mortgage note with those of many other homeowners and buys these packages from the mortgage holder at deeply discounted prices. That process is not something you need worry about, just realize how helpful this can be for you.

While the hedge fund owns your note, they forgive the negative equity and provide you with a new 30 year fixed interest of prime plus 3%.

This is a win-win situation for everyone involved. The investors are happy, lenders are happy, and the homeowner is really happy because they now have a mortgage that is based on the current market value and the monthly payment has been drastically reduced.

Visit us at http://www.ReduceMyMortgagePrincipal.com for more details.

Many homeowners who are in an upside position are prisoners in their own home because the market is way down and they have lost 25% of the value of their home. They cannot refinance because they are upside down and there is no equity. With a mortgage that is now reduced to 90% of the current market value they are free to make what ever decisions they need to. Homeowners can sell, or rent, lease option or whatever they need for their situation, plus they now have a 10% equity position in their homes.

For even more information you may call us:

Glenn Baker

817-729-8866

Loan balance cut in half…

Larry Potter — Sat, 10 Apr 2010 13:45:00 +0000

Take the case of Joaquin Guzmann who purchased his home in Long Beach, California some 23 years ago for $137,000 but has since struggled financially with the economy in a depression.

He began moonlighted from his ground-servicing job with Continental Airlines and had to secures second mortgages and cash-out refinancings. By 2009, his mortgage had ballooned to more than $518,000, including late fees.

“I fell behind,” he said. “I tried to reduce my payments but nobody was listening to me.”

He got sought out a good mortgage principal reduction company and they lowered the total balance to $28,000 and drastically lowered his monthly payment.

Larry G Potter

Mortgage Principal Reduction vs Mortgage Forbearance

Larry Potter — Thu, 08 Apr 2010 19:56:54 +0000

Under mortgage forbearance the homeowner receives a reduction of payments or a delay in making mortgage payments for a short time period, generally less than 6 months. Not so with mortgage principal reduction.

Under the latter, the homeowner receives a new 30-year fixed interest rate mortgage based on 90% of the current market value (unless it is a government based program, then it’s 100%) and he/she receive the other 10% as an equity stake in their property.

With mortgage forbearance, the consumer was usually required to catch up on any reduced or missed payments within 6 – 12 months.

It does not take much to realize which one is better for the homeowner. Mortgage principal reduction wins hands down!

Larry G Potter

Pres, KIM-LAR INC.

How Mortgage Principal Reduction Works

Larry Potter — Tue, 06 Apr 2010 20:25:07 +0000

Let’s say you have a $200,000 mortgage at 8% on which your monthly principal and interest payment is $1467.53 for 30-years, but the house is only worth $150,000

Under the mortgage principal reduction program you are given a brand new 7% 30-year fixed rate mortgage at 90% of the current market value of $150,000 or $135,000 which works out to a monthly mortgage payment of $990.58

This amounts to a monthly savings of $476.95 or a savings of $171,702.00 over the course of the loan!

To top it off, the other 10% is your new equity stake in your home. You just went from owing $50,000 more than your house was worth to having $15,000 in equity.

What do you think is better? A loan mod or mortgage principal reduction!

Larry G Potter

www.LarryGPotter.com

Step 2 for Mortgage Principal Reduction

Larry Potter — Mon, 05 Apr 2010 10:47:35 +0000

After your free mortgage principal reduction consultation, you will be asked to present the following. Please bear in mind that requirements vary, depending on your mortgage needs.

1. Mortgage Statement(s) (1st and 2nd)

2. Income Documentation (i.e. pay stubs “30 days”, last years W-2, 1099)

3. Hardship Letter ( we provide you with a sample )

4. Hazard insurance (Declaration pg.)

5. Copy of Driver’s License(s)

6. All Correspondence Letters (from Lender to Borrower)

7. Notice of Default – if Applicable

8. Notice of Trustee Sale – if Applicable

9. Loan Modification Documentation – if Applicable

10. Property Tax Statement

11. Copy of original mortgage note

Upon receipt of your documents, we will review the information provided prior to the start of the process to make sure that you are eligible for our program. Once your are properly screened we will then submit you package to the lender.

A mortgage principal reduction is much better approach than obtaining a loan mod.

Larry G Potter

http://www.ReduceMyMortgagePrincipal.com

Benefits of Mortgage Principal Reduction

Larry Potter — Fri, 02 Apr 2010 13:04:11 +0000

What is the benefit for the Mortgage Principal Reduction Customer?

1. The Customer never loses ownership of their home.

2. The Customer refinances their home with up to 10% equity.

3. The Customer obtains manageable payments.

4. The Customer never has to worry about an ARM or a Balloon payment.

Larry Potter

ReduceMyMortgagePrincipal.com

Private Mortgage Principal Reduction vs The Government’s Plan

Larry Potter — Fri, 26 Mar 2010 15:55:27 +0000

The government has just announced a plan to reduce the amount some troubled borrowers owe on their home loans, but is it better or worse than private mortgage principal reduction that homeowners can now obtain?

Both programs are similiar in that they are geared toward people who owe more on their mortgages than their properties are worth, this is called being “underwater” or being “upside down”.

The government’s plan will be funded by $14 billion from the administration, while the private plan is being funded by a huge hedge fund and not taxpayer’s money.

Many are dubious about the government’s latest plan since none of the other goverment plans have lived up to expectations . They see little reason to believe the latest effort will be any different.

Also under the government’s program, lenders will get incentive payments if they reduce principal amounts and guess who pays for that in the end? Yep, you and I eventually do!

The major difference is that the goverment’s plan provides homeowners with a mortgage based on 100% of the current market value, thus they have no equity. This private hedge fund provides homeowners with a new mortgage based on 90% of the current market value and the other 10% is now there equity. So, they now go from owing more than the property is worth to having a solid 10% equity stake in their homes! You decide which is better!

Larry Potter

ReduceMyMortgagePrincipal.com

Wall Street Says No Bailout For Homeowners

Larry Potter — Thu, 25 Mar 2010 13:19:46 +0000

Some people on Wall Street feel that people who have seen their jobs go away and cannot find work, which puts them in a tough spot so they cannot make their mortgage payments, should not seek mortgage principal reduction.

These Wall Streeters think homeowners should perhaps try a reverse mortgage plus lower rent back to the bank, maybe with an option to re-buy down the road, rather than a simple reduction in the mortgage balance.

I guess the big banks can get their bailouts but when the little guy seeks relief, it’s another story.

Others think that it will serve only to encourage people to over-spend, knowing that the government will be there to bail them out and their bad behavior will be rewarded. I guess this does not apply to big banks where million dollar bonuses are being handed out for screwing the public.

Some on Wall Street can’t stand the idea that some homeowners are going to make out on this. Where was the raging moral indignation when the industry (realtors, lenders, securitizers, brokers, appraisers and rating agencies) systematically inflated values in the first place?

It’s how we got into the mess in the first place. I encourage homeowners to seek relief through mortgage principal reduction before politicians get their greedy little fingers into the mix!

Larry Potter