Secret Guide to Principal balance Reduction today
The New Rules of Mortgage Principal Balance reduction
Investigate your Loan
before attempting negotiations
Short Pay Refinance
For homeowners current on your loan payments, no history of late payments, good credit, verifiable steady monthly income. The Lender accepts a payoff lower than the full amount they are owed and the Homeowner gets a new loan with a new Lender.
Get qualified for new loan at today's value
Find a good lender and get fully approved by that Lender for a new loan at today's market value
negotiate a short payoff
Present the violations to your lender and inform them you are approved for a new loan at today's full market value. Negotiate with them to accept a payoff short of what you owe. Threaten them
that if they don't agree to a short payoff you will be forced to short sale which will cost the lender to
take a loss 7-20% greater than a short pay refinance because they will have to pay Realtor commission, title transfer costs and a buyer will always offer 10-20% less then market value on a short sale.
Investor Note purchase
A hedge fund would negotiate to buy the actual note at a discount from the current lender and then they would adjust the current balance and collect monthly payments from the homeowner.
Inform your Lender about the evidence of Fraud you have against them
Through the use of a Qualified Written Request you would put the lender on notice informing them about the violations you found and that they have 20 days to respond.
Investor then contacts your Lender to purchase your promissory Note at a deep discount
An Investor would contact the asset manager of the bank that owns your loan and begin to negotiate to by the Note at a deep discount. This would give the lender the option to get rid of the fraudulent debt you have just informed them about instead of dealing with a larger loss over a longer period of time.
Old Loan satisfied and new promissory Note created at a reduced Principal Balance
The investor would buy the note at a deep discount below the amount truly owed. They would then record a certificate of satisfaction of note and the deed of trust to close the loan. At the same time they would create a new promissory Note for an amount somewhere below today’s market value with a monthly payment you can afford.
Based on real violations found to be committed by the lender before, during or after the life of the loan a homeowner may be entitled to monetary damages and then aggressively sue for a principal reduction.
Through the use of material evidence of lender violations of Local, State or Federal Banking regulations you would negotiate a recourse to those damages through a financial restitution which your lender can give you in the form of a reduction in your principal balance.
Present the violations you found to your lender informing them that they have the problem
When you can reveal to your Lender all the violations that exist in your loan, not only have you shown why you have struggled with the payments, but you have shown the problems the Lender now has to correct. It is in the Lender's best interest to get this situation resolved and it is in both parties best interest if these violations can be resolved by accepting a Principal Reduction which would correct past violations and give all parties a winning and sustainable relationship.
To resolve the violations you need a reduction in your Principal Balance down to today’s market value
Based on real violations found to be committed by the lender before, during or after the life of the loan a homeowner may be entitled to monetary damages and then negotiate to get a principal reduction.
Lender does not respond to negotiations...Threated a Federal Lawsuit
Just the threat of a federal lawsuit backed by the evidence in your securitization loan audit should motivate the lender to settle quickly, because they can’t afford the cost of litigation in both the form of public knowledge of their wrongdoing and the actual attorney fees.
If no response from the threat you will have to file a Federal Lawsuit for damages
Litigation proceedings would begin and the lender would have to choice but to defend against the violations.
Sue the lender until debt is resolved
Eventually a resolution would have to be found to that lawsuit and if your evidence is strong, your lawyer is highly skilled at educating the Judge on how the violations were committed, who caused the problem and what that means to you the borrower then you have a chance to be awarded a financial restitution of some type.
Quiet Title Action
A Quiet Title action is a Court procedure of legal action to remove the lien whereas the Homeowner is challenging the validity of the debt. Best used in combination with Material Evidence from a Securitization Loan Audit which shows the Note has been lost or purposely destroyed.
Evidence shows the Loan to be unsecured because of a break in the assignment or through securitization
A securitization Loan Audit will show if the security against your property has been lost. Possible trouble areas; Note purposely destroyed when it was fractionalized into a CDO collateralized Debt obligation derivative. Lender made copies of your Note and sold those copies 3-4 times to different investors. Lender now out of business or merged with another bank and lost your Note. Break in the chain of ownership when your Note was sold or transferred improperly without the correct Assignment of Mortgage being recorded. Was the owner of the Note satisfied by the default insurance even though the servicing bank is still going after the full loan amount?
Challenge the debt through a legal court proceeding
If the Note holder cannot produce the note, the actual piece of paper you signed with your hand in blue ink then the judge may rule the debt void and remove the lien off your property. A scanned copy of the original Note only shows that the lender had owned the note at some point in time. You can scan a $100 bill and save it as a file on your computer, but that only gives evidence that you held that specific $100 note at some point in time. If you still owned that actual $100 bill you could produce it * when required to do so in court and that if what the lender must to to validate the debt..
*(hold it in your hand and wave it in front of someone)
There are no set procedures to a Quiet Title Action. All parties involved in the dispute must be informed and provided the opportunity to prove their case in front of a Judge. If the evidence proves that the Note is lost then the Judge has no choice but to deem the debt void and clear the lien off your property.
Depending on how the property is being used (primary residence or investment) and factoring in the financials concerning negative principal balance, current fair market value and total homeowner debt, Bankruptcy chapter 7, 11 or 13 may work in conjunction with real violations found to be committed by the lender.
Bankruptcy can be used to eliminate 2nd liens and separate the unsecured loan amount from the secured portion based on today's full market value
Through the use of a Securitization Loan Audit, many more options can open up to eliminate the negative principal balance. All types of Bankruptcy are a strutted settlement through the court system. Certain conditions must be met in order to accomplish an elimination of the negative principal balance.
Nothing here is intended to be legal or tax advice.
All information presented here is just options and may or may not apply for your situation.
Legal advice on each matter should be reviewed by an attorney before proceeding.
Nothing explained here could guarantee any level of success at accomplishing your goal.
It is recommended you hire an industry professional to help you each step of the way.
The best possible results
If you want the best possible results, priority treatment and timely responses from your lender you need material evidence. Principal Reduction negotiation should only be attempted after completing a Forensic and a Securitization Audit of the loan in question. Why rely on a charitable contribution from you lender because of a hardship? You may be able to turn the table on the lender, seize control of your situation and go on the offensive.
Forensic and Securitization Audits reveal the problems to both parties
A Forensic Audit is a detailed investigation of your loan documents from the time you applied for credit up to and including origination. The investigation is done by experienced auditors, who are well versed in the Local, State and Federal laws that protect consumers and guide lending practices. A Securitization Audit reveals the path of how the Note was serviced after origination until the present day. If any violations are found you can get much better results and open up more options.
The desire to solve the problem is stronger for both parties
When a Forensic and a Securitization Audit is done, a homeowner is finally able to show their Lender that the real reasons behind their inabilities to pay or continue to maintain payments is because the Homeowner is the injured party. When you can reveal to your Lender all the violations that exist in your loan, not only have you shown why you have struggled with the payments, but you have shown the problems the Lender has too. It is in the Lender's best interest to get this situation resolved and it is in both parties best interest if these violations can be resolved by accepting a Principal Reduction which would correct past violations and give all parties a winning and sustainable relationship.
Equity is neither created nor destroyed, it only changes hands.
YOU may be able to get your equity back.