InvestorCentric: The Short Sale Dilemma For Banks
By NuWire Investor
The message paints an interesting picture of a potentially hidden angle to the recent short sale push by the Administration, banks, and Realtors: a renewed call for broad principal forgiveness. ... I suspect, in fact, that this is part of the reason some large commercial banks—Bank of America (BAC: 15.24 -1.17%) among them as of late—are working feverishly to get in front of this end game, announcing principal reduction programs that are great press exposure, ...
InvestorCentric - http://investorcentric.blogs.nuwireinvestor.com/
Will the Push for Short Sales Lead to Deeper Principal Mods ...
By Yves Smith
he message paints an interesting picture of a potentially hidden angle to the recent short sale push by the Administration, banks, and Realtors: a renewed call for broad principal forgiveness. ...... I teach our agents to understand that short sales are principal reduction programs. Same house, new loan terms, different borrower. If the lender is going to face a situation where they cannot escape a principal reduction, why would they extend it to a borrower who is already ...
naked capitalism - http://www.nakedcapitalism.com/

Web 3 new results for Principal Reduction, Principal Forgiveness

Testimony to the United States House of Representatives - Bank of ...
Treasury has also announced a similar principal reduction program which includes an earned principal forgiveness concept that will be effective later this ...
newsroom.bankofamerica.com/index.php?s=63&item=244
Aid on way to help homeowners | Business | PE.com | Southern ...
Another limitation of the principal reduction program is that it will only lower ... Principal reductions will not be available to borrowers who refinanced ...
www.pe.com/rss/business/.../PE_Biz_D_treasury24.14b7bf3.ht...
The Slippery Slope of Short Sales - HomeGain
the write down of mortgage principal to “short sale levels. ... buying distressed whole loans are already forgiving significant amounts of principal, because they ... Wide-scale principal reduction for these banks means recognizing ...
www.homegain.com/.../The-Slippery-Slope-Of-Short-Sales?...

Can I really get rid of my NEGATIVE EQUITY? YES!

Google News Alert for: Principal Reduction, Principal Forgiveness

BigNews.biz (press release)
Debt Reduction Programs Can Eliminate Debt Today
BigNews.biz (press release)
Yet the debt reduction programs of today go beyond simple debt consolidation, and work to address the principal of debt, not only the interest rate and ...


Google Blogs Alert for: Principal Reduction, Principal Forgiveness
PRINCIPAL Reduction Program Available NOW
The news of a HAMP principal reduction program comes after Bank of America (BAC: 17.30 0.00%) introduced this week an earned principal forgiveness program in which a forborne amount of principal will gradually be forgiven over a ...
Acinc Mtg-Principal Reduction - http://www.trulia.com/blog/acinclendersshortpayrefinancing/
principal reduction program for bank of america | Home Mortgage
By us
without comments. principal reduction program for bank of america. If you have a loan or directly from the Bank of America and Countrywide's 60 days or more late, you may be eligible for the new “major earned forgiveness. ...
Home Mortgage - http://www.4usmortgage.com/
The Savage Truth on Money: Here's an Easy Solution to Our Mortgage ...
By ChristineL
"Second, the lender — in return for reducing the mortgage principal amount — would get one-half of the appreciation on the first resale, until the lender had recouped the forgiven principal, without interest. ... You'll wonder, as I did, why the federal government couldn't come up with this simple solution that requires no paperwork, no modification, no red tape — simply a reduction of principal and monthly payment that could be done by the servicer, combined with a ...
Hermann News and New Haven News Online - http://www.ngnn.com/65041

Google Web Alert for: Principal Reduction, Principal Forgiveness
Bad Credit Mortgage Loan » Mortgage Principal Reduction – Bank of ...
Mortgage Principal Reduction – Bank of America is home loan principal reductions ... Principal forgiveness, with a portion of your most importantBalance is ...
badcreditmortgageloan.hotnewreleaseproduct.com/mortgage-p...
Real Estate and Rentals - Tax Answers - H&R Block Get It Right ...
Michigan: My mortgage company has offered me a principal reduction of 56000. ... Do I qualify for the Mortgage Forgiveness Debt Relief Act if I do NOT use ...
getitright.hrblock.com/.../tax-category.html?questionid...

Lots of cool links for PRINCIPAL REDUCTION

Google News Alert for: Principal Reduction, Principal Forgiveness

Second chances can fail Cincinnati.com "Without principal reduction, you've made the program limp. ... Finally, the bank will consider forgiving debt to keep a customer in his home and recoup ...

Google Blogs Alert for: Principal Reduction, Principal Forgiveness

Bank Home Loans » How Does Bank of America Mortgage Principal ... By owowonowo If you think you are being dealt the heavy end of the mortgage principles it is about time you rejoiced and relaxed thanks to mortgage principal reduction. Even as you read this article steps are being taken to make sure that if you are one homeowner with negative ... The lucky people eligible for the offer can have forgiven up to 30% in mortgage forgiveness and get bearings in paying up their loans. Through a gross estimation of around 45000 individuals will qualify. ... Bank Home Loans - http://bankhomeloans.blognows.com/

Banks Resist Plans to Reduce Mortgage Balances | Chink in the Armor By admin But an official at one of the banks, David Lowman of JPMorgan Chase, said principal reduction could reward households for consuming more than they could afford, might punish future homeowners by raising the cost of borrowing and in any case ... “Principal forgiveness is not an across-the-board solution,” said the executive, Mike Heid, co-president of Wells Fargo Home Mortgage. Two other bankers who testified, from Bank of America and Citigroup, largely avoided the issue. ... Chink in the Armor - http://blog.chinkinthearmor.net/wordpress/

Remortgage » Obama's Loan Modification Program – The "Making Homes ... By owowonowo Interest rate reduction to as low as 2% Longer loan term to 40 years. Principal forbearance. Principal forgiveness (not mandatory and at lenders discretion) Second loans are now eligible for modification under this plan ... Remortgage - http://remortgage.blognows.com/

Mortgage Principal Reduction – Bank of America Announces Mortgage ... By admin Mortgage Principal Reduction – Bank of America Announces Mortgage Principal Reduction Program. Mortgage arch abridgement is a ability that caters for the banking needs of individuals who are aggressive to cope with acutely acrid ... The antithesis can again be forgiven arch afterwards a aeon of 5 years during which the borrower accept to accomplish constant repayments. If you administer to chase up on all repayments after behind on any of them you angle to accept 30% arch ... Fixed Rate - http://fixedrate.loggoo.com/

Google Web Alert for: Principal Reduction, Principal Forgiveness

Art Of Saving - Kenneth R. Harney: Lender plans to forgive a ... Lender plans to forgive a portion of principal. ... underwater borrowers will be evaluated for principal reduction as the first step in a modification. ... www.artofsaving.com/Savism_University.asp?ArtID=364

Bank of America to offer mortgage forgiveness - Mortgage | Real ... "Earned principal forgiveness" may be offered on subprime ARMs as well as on ... are reluctant to accept a solution without a reduction in the balance due ... realestatenewspost.com/.../bank-america-offer-mortgage-forgi...

American Economic Solutions In order to be eligible for tax forgiveness, homeowners had to be Qualified Primary .... Prior to the introduction of the Principal Reduction Plan, ... www.amecsolutions.com/blog/

Mortgage Principal Reduction | Fixed Rate Mortgage Principal Reduction – Bank of America Announces Mortgage Principal ... after behind on any of them you angle to accept 30% arch forgiveness. ... fixedrate.loggoo.com/tag/mortgage-principal-reduction/

Mortgage Financing - Considering the Options Available to Homebuyers Mortgage Principal Reduction - Mortgage Principal Forgiveness Program Announced by BofA · Filthy Reverse Mortgage Tactics Used to Steal Your Money ... ezinearticles.com/?Mortgage-Financing...the-Options...

Amazing new Program for Homeowners in distress

Below is an example of how our Principal Forgiveness Program works.

There are solutions for homeowners in almost all situations, but you have to be aware of them and you have to seek them out. If you don't you will be left with what you've got and that could spell disaster for you in the future. Get the facts and start playing the game like the big boys. The advantage is yours even if you don't realize it at this moment.

Read On, then visit us at Click Here our web site.

The Relief You Have Been Waiting For

While Loan Modifications are all the rage right now, that may not be your best

option. As a matter of fact, most Loan Modifications are only a short term fix and could leave you with much bigger problems later.

Sure, you may get a reduction in interest rate for a few years, giving you a lower payment for now, but if you don’t get principal reduction, you really don’t have any relief at all. You still have a mortgage that is much higher than the current value of your home.

That is where IFI comes in. We negotiate with the Bank to buy your Note from them at a very reduced rate (many times up to 1/2 of the current mortgage).

Once the Bank accepts our offer, you will receive your new mortgage details and have 72 hours to review them. Upon acceptance of our offer, your new Note holder will be IFI and you will pay us as you had previously paid the Bank.

You, the Homeowner, remain on the title for the entire process. You still own your home BUT the big difference is—that the mortgage you are paying on more clearly reflects the market value of your home today, rather than what you purchased it for 5 years ago.

HOMR™ Home Owner Mortgage Restructuring

Sample Transaction

Typical Home Owner Transaction Home Purchased in 2005-2006	$650,000.00
Current Mortgage Balance 2009	$580,000.00
Estimated Including back payments & fees Current Monthly Payment estimated Principal and Interest	$3,665.09
Today’s Market Value	$449,000.00
Negative Home Owner Equity	-$131,000.00
HOMR™ Restructured 1st Mortgage New Current Mortgage Balance	$449,000.00
Monthly Payment (Fully Amortized P.I.T.I.) 30 Year Fixed Rate Term	$3,532.28 HOMR™
Home Owner Restructured Savings - Equity	$131,000.00

Call us now to see if this is a good fit for you 1-888-8DEBT-80

Re-boot Ur Mortgage

Did you buy your house at the top of the market?

Would you like to Re-Boot your mortgage and re-buy it at the bottom of the market?

If you think I'm crazy, I'm not, we have just introduced our brand new Principal Forgiveness Program that is now available only in CA, NV, AZ, and HI.
____________________________________________________

If any of this is confusing, call us and we will explain it in detail to you.

____________________________________________________

Now you can defy gravity, turn back the clock and re-do your mortgage and start over at the bottom of the market instead of the top where you started.

Here is how it works:
Reduction of the Current Mortgage Balance to TODAY’S Appraisal Value
Program Guidelines:
•Restructured Mortgage Balance at Appraisal Value (market value)
•New Restructured Mortgage Term: Impounds Mandatory – No “Pre Payment Penalty”
•8.75% (Wall Street Prime & 5.5 points Fixed @ closing) PITI fully amortized over 30 years
•1st Mortgage and 2nd
Mortgage (combined)
•Judgments, Liens, and Child Support etc.: “May Remain on Title”
•Full Income Documentation ONLY
•Maximum Debt to Income Ratio 40% “Front End” @ new loan balance @ 8.75% PITI & HOA
•Evaluation & Appraisal Fee*: $795.00 (1st) + $595.00 for 2nd if present
•*Fee is 100% refundable if file not accepted by IFI. States: CA, NV, AZ & HI Cash to close:
•1St payment @ restructured loan amount
•1 old payment (given to previous lender at closing)
•RE taxes in rears
•Homeowner Insurance paid to date
•HOA Dues in rears
•15 days “Odd interest” Guidelines:
•Must be 60 late days or more on mortgage payment
•Must be upside down on 1st mortgage - 120%+ higher than property value
•Primary Residence and 2nd Homes only
•Home in BK is OK – the pre-arranged HOMR™ would need to be either approved by the Trustee of the BK released prior to closing.
•Debt consolidation payment grossed up by 125%
•SSI grossed up by 125%
•Rental income calculated at 75% of lease payment agreement
•Max loan amount $1,500,000.00
•Deferred Student Loan payments calculated @ 5% of loan amount divided by 12
•No conforming Fannie Mae or Freddie Mac, VA or FHA loans.

Why Homeowners FAIL on their own

WASHINGTON (AP) -- A government watchdog on Thursday strongly criticized the Obama administration's loan assistance effort, saying the government rushed the program's creation last year and set up hundreds of thousands of homeowners for failure.

The program, widely viewed as a disappointment, is designed to lower borrowers' monthly payments by reducing mortgage rates to as low as 2 percent for five years and extending loan terms up to 40 years.

But there were problems from the start. Getting banks and homeowners to complete the process has been tough, and to date only 170,000 homeowners have completed the process out of 1.1 million who began it over the past year.

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, told House lawmakers that the Treasury Department took a "ready, fire, aim kind of approach" when creating the $75 billion program last year.

That lack of planning, he said, has resulted in "constant changes" that have bewildered the more than 100 participating mortgage companies.

Another mistake, Barofsky said, was the Treasury's decision last year to allow borrowers to enter the program without providing written proof of their incomes. That move, Barofsky said, led to a huge backlog of homeowners who are waiting to see whether they qualify.

"It may have actually harmed the people this program was intended to help," Barofsky said, by putting homeowners into "hopeless modifications with little chances to succeed."

After having problems getting borrowers and banks to complete the process, the Treasury Department reversed course earlier this year and said homeowners seeking relief would be required to provide proof of their incomes upfront.

In another change, Treasury officials said Wednesday they would enact protections to ensure homeowners are treated consistently under the program after complaints from consumer advocates. Mortgage companies will have to evaluate all borrowers who have missed at least two payments to see if they are eligible.

The companies also must not foreclose until homeowners are found ineligible or don't respond to outreach efforts. Borrowers will be able to get decision on their application within 30 days.

Herbert Allison, an assistant Treasury Secretary, said in testimony prepared for a House hearing that the changes will "help address some of the confusion and anxiety that some borrowers reported."

Get the right help with ModRep, don't try this on your own, you could get hurt.

Banks Lie and here is the PROOF

Today we received an inquiry from our web site from a lady who had been told the following by her bank when she inquired about asking for a mortgage modification:

Question submitted from T. Wilson ladyt----@yahoo.com :

subject: HSBC
Question: The agents at HSBC state that HSBC does not work with any outside companies and they don\'t participate in the Government Programs signed by President Obama. Do you work with HSBC? Can you help if a bank doesn\'t participate?

We got a kick out of showing her proof that we had worked with HSBC in the past and routinely achieve great results for our customers with this company.

Don't believe everything you hear, especially if it's coming from your mortgage company. This is a great example why it's best to hire the professionals at Mod Rep and American Debt Buster, LLC. We know what we are doing and we don't take not for an answer.

It's also important to note that we know when the bank is lying and when they are telling the truth. You have to remember, the bank is a business just like any other and sometimes they say things just to get or keep your money, just like most other businesses.

This lady did the right thing, she asked the questions and got the facts. You need to do the same thing, and don't do anything until you know the truth.

Go to ModRep.com right now and ask a question or just give us a call.

What about my credit score?

How will the modification affect my credit?
Accepting a loan modification can affect your credit score, but the actual effect will depend on a variety of factors. For more information about your credit score and how to improve it, visit www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm.

Each month, servicers must describe to the credit reporting agencies the exact status of each mortgage. If you are current with your mortgage payments prior to the trial period and you make each trial period payment on time, your servicer must report you as current and also identify the loan as “modified under federal government plan.”

If you are delinquent (at least 30 days past the due date) prior to the trial period and the reduced payments do not bring the account current, your servicer must report the level of delinquency and also identify the loan as “modified under federal government plan.”

The source: http://makinghomeaffordable.gov/borrower-faqs.html

Up Front Fees and Scams

Media and Journalists Offer Little Help or Information for Troubled Homeowners

"If you don't know what you are talking about then you shouldn't talk." This is a lesson that most people learn at some point in life. Of course everyone knows a jackass that has yet to learn this simple little life's lesson. Apparently this is a lesson many of the journalists currently writing "Loan Modification" advice articles have never learned.

Granted, the loan modification industry has provided ample fodder for the general media. Early on, the lack of oversight and regulation of the industry created a perfect petri dish for growing con artists. All of a sudden everyone was an expert and thousands were getting scammed. This early preponderance of scams in the field made for easily written and sold "advice" articles.

The clearest examples of this can be found in literally hundreds of loan modification articles written over the course of the last year. These articles all issue the same dire warnings to troubled homeowners. They all provide the same talking points and invariably the message is exactly the same:

DO IT YOURSELF! DON'T PAY UPFRONT FEES! or THERE ARE FREE RESOURCES OUT THERE LIKE... "HOPE NOW"!

A year ago this may have been sound advice. The problem now is that loan modification rules have changed but the advice has stayed the same. Over the course of the last six months the states have stepped in and passed legislation aimed at protecting homeowners and at regulating the industry. No longer can anyone with a website and business card call themselves a loan modification consultant. This legislation has pulled the rug out from under thousands of self proclaimed loan modification experts and inserted strict guidelines as to who can operate in the industry. Unfortunately, the media has not recognized this fact and continues to beat the same drum and tout the same advice.

The current problem with these types of articles is that the authors generally possess no practical experience or expertise in the field upon which they are commenting. In other words the majority of these journalists have absolutely no idea of what they are talking about.

The issue here is that this sort of advice leaves the homeowners with little choice and few options. This message frightens the homeowners away from seeking legitimate professional help. The reality is that doing a loan modification, without professional help, has thus far proven to be a very low probability endeavor. Furthermore, the homeowner who attempts modification on his own is likely to spend many, many months running into brick wall after brick wall or getting the "run around." Meanwhile missed mortgage payments continue to stack up, placing the homeowner further and further behind. The ten months (not at all unusual) the homeowner burns attempting to negotiate with the bank on his own means ten missed mortgage payments. Considering a $1200 mortgage payment, this means the homeowner has accumulated in excess of $12,000 in late payments when coupled with associated fees. This is new debt which will likely be tacked onto the balance of the loan. It doesn't take long for it to becomes apparent that the "free" route of performing a loan modification on your own is really not very "free."

The overwhelming majority of homeowners indicate experiencing frustration, delays and dissatisfaction when attempting the process themselves . Most of the articles from the major news sources, concerning government modification plans, report very limited success. A CNN article dated 12-10-2009 indicates that only 4% of borrowers are receiving long term help under the Obama plan.

The ratio of comments indicating frustration and failure outnumber those indicating simplicity and success by at least 100 to 1. The only people to be found advocating self performed loan modifications and commenting on the ease of the process, are likely people who have never in their life attempted to negotiate a loan modification.

The first thing the reader of these articles should do is consider the source. What makes this article's author an expert on Loan Modification? What experience are they drawing upon in order to provide you with this point of view? In short, what makes this author an authority on the subject?

A few months ago a quick read of an article disparaging "upfront" fees and advocating self representation provided some insight. A little bit of research on the article's author also provided some interesting results. Was this person a mortgage professional? -NOPE. Was she a business professional? NOPE. Was she a legal scholar? -NO. Was she a loan modification expert? -NO. Was she banking professional? -NOPE. Was she a real estate professional? -NO. So what were the author's qualifications? As it turns out the authors qualifications are that she is.... a journalist. A google search revealed several other articles written by this very same author.... all of them about the proper application of different types of make-up. That's right...MAKE-UP. So I guess the question is... "Should this person be giving advice concerning Loan Modification?" and "should you be taking this person's advice?" The answer is pretty clear.

A large part of the current problem is that homeowners, following poor advice from journalists and the media, are attempting to deal with the banks on their own. Unfortunately, this approach leaves the homeowner to his own devices. As it turns out, it's kind of like sending homeowners to a gunfight with a knife. The lender holds all the cards and negotiates with the LENDER'S best interests in mind. The lender negotiates to provide the homeowner with the LEAST AMOUNT of modification relief acceptable to the homeowner. The lender negotiator is a LOSS MITIGATION expert. This means he is attempting to maintain as much of the bank's money/profit as he can. The lender negotiator's primary goal is NOT "helping the homeowner" get the best deal, it is in fact, limiting the lender's losses.

Upfront fees were (and in some cases still are) a significant component of the loan modification scam. However, the "upfront" fee itself does not automatically mean scam. Many, if not most, professionals or professional services require some sort of deposit, binder, retainer, initial payment or other "upfront" fee prior to initiation of the service or work. Self proclaimed loan modification experts in the media, will make the blanket statement: "If they ask for an upfront fee-it's a scam!" I would submit that this is a gross and irresponsible oversimplification. Perhaps better advice might be to thoroughly check out the loan modification company prior to paying any upfront fees. Advice advocating google searches, on the company being considered, with "scam" or "complaints" in the content lines might be appropriate. Checking on the company with the Better Business Bureau would be sound advice. In other words-performing a bit of due diligence prior to engaging a company for representation might prove to be more realistic and valuable pieces of advice.

The bottom line is that the majority of people need third party representation when it comes to negotiation with their lenders. Most states have enacted legislation aimed at regulating the industry and protecting their residents. Con artists are con artists and should be called out as such but the media and journalists need to realize that there are many, very legitimate, companies operating in the loan modification industry. These are companies that are truly dedicated to providing homeowners with the honest and professional help they require. These are organizations that follow the rules and regulations as laid out by the state and federal governments. These companies, and the people who work for them, have an honest and ethical business model coupled with a genuine desire to help troubled homeowners.

Part/Full Time Agents Needed $2,000.00/Week

The Government has given us just 2 years before they will withdraw the Federal Mortgage Modification Program known as Make Home Affordable. We need agents in every City to help us help every homeowner with a mortgage to lower their interest rate and mortgage payment by as much as 60%.

Do you think you could find people interested in lowering their house payment by as much as 60%?

We provide full training and everything you will need to begin earning money right away.

No license and no experience is necessary.

If you are looking for a real job/opportunity that earns you real money and helps people, then you need to Click Here right now. This will take you to our web site.

Once you have reviewed the web site, if you are interested in learning more you can email me at Scott@AmericanDebtBuster.com and I'll call you to discuss this further.

We need 1000 agents right now to help us.

Stop wasting your time on MLM's and all this other Internet crap out there that only makes someone else rich. What we offer is real, it helps people and is mandated by the US Government. But we will run out of time in just two years, but that's enough time for you to make a fortune.

Anyone can do this and we don't charge you anything to become part of our team!

You have nothing to loose, so find out how you can start making a realistic $10,000 to $20,000 a month helping people cut their house payment by as much as 60%.

Scott@AmericanDebtBuster.com

Wow, this guy really knows what he's talking about!

Show Me The PROOF

Whenever you hear stories like this one, it's important to check it out and make sure that there are facts to back up the statements. Too many people get hurt believing some of the ridiculous stuff being spread around by (in many cases) well meaning people.

I don't want you to believe anything I tell you unless I can show you the proof. Fair enough? So, here it is in black and white. We can't make this stuff up Click Here for all the solid proof.

But, be careful, because once you know the truth, you have to do something about it.

What's this all about?

This blog was created to educate homeowners on how to cut their mortgage payment in half using a program put in place by the Federal government.

Anyone can do this, but few actually do. There are many reasons why people don't take advantage of the program that makes this possible, but by far the main reason is people just don't know it even exists.

This blog and the accompanying short video's will give you all the information you need to Cut Your House Payment In Half.