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

I need to lower the principal balance of my loan. What can I do to get that done?

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:29 | Post subject:

eric1's picture
eric1 | Joined: January 4, 2009 03:52 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:29 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we are so upside down here in fl

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:29 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:29 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

:( :( 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

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Has Central Mortgage done Principle reductions?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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