Principal Reduction Program FAQs

Frequently Asked Questions

1. Q. Do I need to be late on my payments?
A. No. If you are behind we can still help.

2. Q: My monthly payments will be how much?
A. A mortgage payment reduction of 25% - 50% is what we've usually seen for our homeowners.

3. Q: This process takes how long?
A: 90-180 Days

4. Q: If I have more than one Mortgage loan can I enter the program?
A: Yes.

5. Q: Will my credit be affected negatively?
A. No. There will not be any tax recourse for the homeowner since this loss is a voluntary write off by the current mortgage company.

6. Q: To get started how much does it cost?
A. There is a $1595 one time fee to the homeowner covers the costs of 3 appraisals, 2 credit checks, 2 title insurance o&e policies, document preparation and processing etc. $1595 one time fee is 100% refundable if principal reduction program is NOT completed with in 180 days.

7. Q: I will receive what type of loan?
A: a 30 year fixed rate mortgage.

8. Q: Would you ever take ownership of my house?
A. Title or Ownership of your home will never be lost.

9. Q: Once everything has been completed what will my new loan be?
A: The new loan balance will be based at 90% of the homes Current Market Value.

10. Q: What about a prepayment penalty?
A. Depends on which lender you qualified with. Most do not have prepayment penalty period.

11: Q: Is it a fixed private note?
A: Yes

12. Q: Do the mortgage payments still have to be made?
A. Yes. We do not advise mortgage payments to be missed by the homeowner.

13. Q: Can you help me if I am a business owner and make good money but cannot prove enough income on my taxes?
A. Yes. Your last 12 months business and/or personal bank statements will need to be provided.

14: Q: Do I qualify if I have an investment property?
A. Yes. An investment property will be considered. Please call for details.

15. Q: Can you work with FHA Loans?
A: Yes.

16: Q: Can my loan be refinanced at anytime?
A. Yes, there is a pre-payment of 3 years depends on which private lender you qualified with. Most do not have prepayment penalty period.

17: Q: Is someone else on the title or do I still own the home?
A. The title and the note will remain in your name. The private equity fund has no interest in owning your home.

18: Q: Are there any restrictions for property type?
A. It is limited to Single Family Resident for right now... condos as well are acceptable.

19: Q: For this program, how much money has been allocated?
A: $100 millions have been allocated. Can access up to $500 millions.

20: Q: Does my state have any restrictions?
A. Currently, we can only assist with properties in Florida.

21: Q: Does it need to be a cashier's check for payment?
A. Yes or Money Order.

22: Q: Can I add other borrower be on the note to help the DTI?
A. YES. Prior to being put on the title they must pre-qualify.

23. Q: Can homeowners with a jumbo loan be helped?
A. Yes. Jumbo Loans are considered, please call for more details.

24: Q: The 3 year prepay is what?
A. Depending on their FICO, 6 months interest whatever their rate is 4%.

25: Q: To help manage clients is there a website to help?
A. Yes. For reps, we have a back office database.

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