Why Choose
1st Financial Nationwide
For Your Loan Modification?
A Loan Modification can transform your existing loan into a payment you can afford.
With Representation We Can help:
- Lower your interest rate to a comfortable payment you can afford
- Stop foreclosure with a loan modification agreement
- Change the terms of an Option ARM mortgage
- Obtain a principal reduction or forbearance
We're ready to listen, it starts with a call...
Questions about... Home Loan Modification, Mortgage Loan Modification, Bankruptcy Loan Modification, Foreclosure Help, Foreclosure Assistance...click here
Principal Reduction - Myths Abound...
We have a very straight-forward approach at Ferguson Financial, which is to EDUCATE our clients, give them CHOICES, and SERVE THE CLIENT's long-term financial interests. So, with regard to the many questions we have received about PRINCIPAL REDUCTION, we wanted to post these answers to the most Frequently Asked Questions. Please feel free to CALL US with your continued questions about this topic (and others), and how it pertains to your specific situation. We are delighted to provide you with answers and expertise regarding mortgage modification, origination, and re-financing of your home loan(s).
Q: Is there really "Hope for Homeowners"? (Customer inquiry about the 2008 Law by the same name, signed by President Bush)
A: This law encourages Investors (the actual owners of the Mortgage Notes) to help homeowners in the worst of situations. Many investors say they would be willing to take a principal write-down in exchange for getting troubled loans off their books. But so far, just 51 loans have been refinanced under the Hope for Homeowners program, the Department of Housing and Urban Development says.
Q: Then, How Do These Firms Make Claims Such As: "We Can Reduce Your Principal"?
A: It is our opinion that this is simply a 'Hook' to get Borrowers to call in. Most firms are using Bankruptcy to accomplish any write-downs in principal, AND only where there is a SECOND MORTGAGE. The Borrower is steered towards filing bankruptcy, including the Second Mortgage in the debts to be "Discharged", and the principal in the Second Mortgage is wiped out, or paid-off at a fraction of the original amount. If you are willing to live with the consequences of bankruptcy, this is one of several options.
Q: Are there other ways to successfully "Cram Down" the mortgage principal balance?
A: This was a nice pun on the recently failed "Cram Down" Legislation, which passed in the House, but LOST BIG in Senate. IF the subject property is an investment property, there are avenues in the bankruptcy code that allow a petitioner (you the Borrower) to request principal reduction as part of the workout package with the Lender. This would definitely be a case where you need a skilled bankruptcy attorney.
We will add more questions and comments shortly on this hot topic.
Should you need the advice of a skilled real estate or bankruptcy attorney with regard to the above matters, please call us at 1-866-968-9685. We can guide you to one of our legal specialists nationwide that can assist you.
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