Beginning less than a year ago a company in Scottsdale, Arizona backed by a $50 Billion hedge fund has started offering underwater homeowners a permanent solution to their nightmare of negative equity. Offering a Principal Reduction Program which essentially is a large scale Note Purchase program on the secondary market. The Principal Reduction Program allows a homeowner who is at least 25 percent upside down on their mortgage and has documented income which supports a debt-to-income ratio of 50 percent or less (based on the new lower monthly mortgage payment) to permanently eliminate their negative equity for a one-time fee of $1,595. This includes closing costs, attorney fees, appraisals, and even the new loan. The Principal Reduction Program takes approximately 60-90 days to complete and the homeowner ends up with a new loan at 90 percent of current market value. All negative equity is permanently eliminated and the homeowner realizes an instant 10 percent equity position at the end of the process. Sound too good to be true? When I first heard about it, I was as skeptical as you.
Here’s how it works.
It’s really well done! Respect to author.