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Balance Reduction an Alternative to Loan Modification

A Balance or principle reduction program is a great alternative to a loan modification for several reasons. First your loan is actually paid off at a reduced price and restructured to create am much more manageable monthly payment and balance. A lower monthly payment allows you to keep and stay in your home, and the lower balance will allow you to sell your home if you choose.

Second a balance reduction is a permanent solution to being upside down in your loan, not a temporary fix like most loan modification. Why do you think the banks make you enter a trial loan modification? Because like any trial they can back out without notice even if you are current on payments.

Third a balance reduction can be performed weather you are behind or current in your payments. A balance reduction only requires that you are upside down in your loan to value by at least 75%. In a balance reduction your loan is reduced or negotiated down bought out at reduced price and restructured as a new loan thus reducing not only your balance but also your monthly payment.

a balance reduction is a new loan so there is no chance of it reverting back to the original term of the mortgage like so many loan modifications do.This gives the home owner a fresh start and the ability to either stay in their home or sell it if it is to much for them.

Unlike a loan modifications you do not have to be behind in your payments to qualify. You do not have to stop paying your loan on purpose wrecking your credit score to qualify! Current or behind on payments you can qualify for a balance reduction, good credit bad credit you can qualify, and the best part is that it is free to find out if you qualify.

The Federal Government will soon start requiring bank to to perform principle reductions if you are currently upside down in your home loan. But like most federal programs the guide line are left up to the Lenders. we shall see how the banks do with these new programs. In the mean time there are companies who are successfully performing balance reduction today.

Private Equity backed companies like Repair Financial Problems have been successfully performing balance reduction programs in Dallas and Miami for a while now. RFP has just launched a nationwide campaign to educate consumers on their options and is now offering its programs in all 50 states. RFP is backed by private equity funds and serviced by private investment companies. terms and rates are determine by credit worthiness,

but most scores will qualify. Companies like Repair Financial Problems are making life affordable again.

Adam T Barrera