Principal balance reduction: What can I do to get it done?

Hi dianesummers,

Welcome to our forums.

You need to contact your lender and request for principal reduction. You'll have to be a good negotiator. Explain your situation clearly stating why you're asking for a reduction.

There are companies who've been participating in the principal reduction program (as per Democratic House Bill) allowed by the Federal Reserve. You need to find out if your lender allows such a reduction.

Good luck

Unless you are in danger of losing your home AND your home value is lower than the outstanding balance on your loan, you have little to no chance of getting your balance reduced.

we are so upside down here in fl

Hi wendyelis!

Welcome to forums!

You can apply for a loan modification with the lender and request him for a principal reduction. It will be the lender's discretion whether or not he will give you a reduction in your principal balance.

Feel free to ask if you've further queries.

Sussane

We are senior citizens & our house & land is only worth about exactly what we owe on it $180K !!! We can NEVER pay this off in our lifetimes as we only have 10 to 15 years to live according to most longivity charts !!! I have been disabled for 12yrs since a drunk driver destroyed my spine !!! I am now also DIABETIC & HYPOTHRIDIC !!! I cannot work at all ! My hubby is 65 & becoming more arthritic by the day. We have a lawn business which he has to run by himself & he is to the age that he doesnt have the strength to do so any more. We cant afford our pymts ! Can we qualify foor prin. reduction from WELLS-FARGO ? THANKS

Hi ann!

Welcome to forums!

It will be the lender's discretion whether or not it will give you a principal reduction. You should immediately contact Wells Fargo and inform them about your situation and apply for principal reduction. They will go through your financial situation and let you know whether or not you'll get it.

Feel free to ask if you've further queries.

Sussane

How di I get my prinicipal reduced my home is valued at 175 I owe 363

my loan modification is at 2.00 which is over in November 2011. Should I request a prinicipal reduction because I will not be able to pay my mortgage which will go into a virable what should I do

:( :( My loan will go into a variable in November 2011 how do I get my prinicipal reduced my prinicipal is 363 home valued to 175. I won't be able to pay the payment after November 2011 what should I do

Hi jacquiesworld!

Welcome to forums!

You won't be able to reduce your principal amount. However, you should contact your lender and apply for a loan modification in order to lower the interest rate so that it becomes easier for you to pay off the dues in full.

Feel free to ask if you've further queries.

Sussane

Got a loan modification but all the mortgage company did was defer the past overdue balance my payment went up $130. Now I have an additional 44k on my loan I was only behind 12k?? Is there anything I can do to reduce my principle and/or once I get approved for a loan modification can I apply for another one?

Hi Guest!

Welcome to forums!

You can apply for a principal reduction on your mortgage. This will help you in lowering your principal balance.

Feel free to ask if you've further queries.

Sussane

Has Central Mortgage done Principle reductions?

Well... I don't have a personal experience dealing with them. I will suggest you to negotiate with them and convince them for principle reduction.