Tag Archives: Principal

Private Fund Principal Reduction Plans in Perspective: Alternative to Strategic Default or Hating-Your-House

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Tampa, FL (PRWEB) June 30, 2010

It seems the only consensus regarding the housing crisis is that recovery will be slow in coming. Home values are stagnant (still falling in many areas), foreclosure numbers are increasing, and the federal governments HAMP response is widely seen as an abject failure. These factors suggest few, if any options, for responsible homeowners to recover their lost housing investments any time soon.

It would seem the only options for those still able to pay their mortgages are to continue throwing money away into an undervalued asset, or engage in what is called strategic default, likely ruining your credit and chance for homeownership in the near future. In fact, homeowners who strategically default will be ineligible for new Fannie Mae-backed mortgages (up to seven years) and will likely face court via deficiency judgments.”

There may, however, be a third option. While the Too-Big-To-Fail banks and the Federal Government continue their painfully slow response, the private sector may offer a solution to some of these forgotten families who feel stuck between two bad choices: strategic default or hating their house.

Various private equity and hedge funds have entered the fray with clear and concise plans that can result in a win/win/win scenario. Once a large portfolio of residential mortgages from a given lender is collected, the fund negotiates the purchase of that portfolio at a discount. That discount is then passed on to the homeowner via principal reduction. The lender gets a cash infusion and avoids strategic default risks. The homeowner is rescued from negative equity, and the fund is able to profit while rebuilding the securitization market at the same time.

Given that different funds target different homeowners and private funds like their privacy, programs such as this have received minimal attention. Trinity Bay Financial, Inc., an authorized affiliate of Addvent Funding, has taken the initiative to gather as much detail as possible on the topic, and offer it to the pubic at: http://bit.ly/tbfprpdata.com.

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New Principal Reduction Program to be Introduced

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Clearwater, FL (PRWEB) November 11, 2010

Almost a year and a half of thorough research and development have been put into the project by Earth Financial.There is no doubt about it, principal reduction is the solution to the housing crisis says R. Jack Wilson of Earth Financial. Almost every credible economist in the country is advocating principal reduction as the long term fix. The key is sustainability in our clients financial lives

Principal reduction is when a lender agrees to significantly reduce a homeowners mortgage balance. Earth Financials principal reduction program takes advantage of the current legal climate to essentially fight fire with fire and use the law to force banks to comply with Federal law.

Recently foreclosure freezes from major lenders and the subsequent investigations have revealed the existence of paperwork problems through an industry service called the Mortgage Electronic Registration Systems (MERS). These problems with MERS have resulted in the discovery that clear line of title on over 62 million homes across America has been legally broken involving properties between 2003 and 2008. Without clear line of title, the servicers and banks lack the proper legal backing to collect on the mortgages that they service. In addition, major lenders such as Bank of America, Wells Fargo, Chase, and CitiBank have all been involved in potentially fraudulent activity, ranging from destroying millions of homeowners original documents to the illegal Robo-Signing scandals in which unqualified personal flagrantly broke the law by illegally signing millions of documents.

Our principal reduction program presents a new way of thinking, a new type of solution that is predicated on the law. The banks are not above the law. We intend on helping as many struggling homeowners as we possibly can.

Another aspect of Earth Financial Services principal reduction program involves the security side of the millions of underwater mortgages across the country. New investigations have revealed rampant fraud in the creation of trillions of dollars worth of mortgage backed securities (MBS). MBS are the bonds that are formed from pools of mortgages that are securitized and sold in the private derivative market. When the banks were creating these ticking mortgage time-bombs, they broke every tax law, REMIC law, New York trust laws, every law you can imagine; I mean, it is all flagrantly criminal

The result is that the banks and servicers have muddied the waters so badly they cant even tell who owns what anymore. By attacking the banks negligence in these types of matters and forcing them to prove they possess the paperwork that is required of them by law, Earth Financials principal reduction program uses a tough approach to force the banks to comply with a principal reduction, otherwise they face stiff penalties. The program is designed in a multi-stepped fashion and is easily the most affordable type program in the market.

The banks really have no choice Wilson said There is no doubt they have violated not only the law, but the trust of the public. Its time to stand up to these lenders and servicers and make them accountable for the mess they made. Earth Financials principal reduction program will do just that.

Powerful words; an even more powerful program.

For more information call 888-525-4449 or email info(at)earthfinancialservices(dot)com or go to http://www.earthfinancialservices.com

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Related Securitization Press Releases

Lance Denha Discusses Lender of The united states Announcement to Widen Its Principal Reduction Choices

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(PRWEB) Might 16, 2012

Lender of The usa introduced last 7 days that it has started sending letters to countless numbers of homeowners in the United States, providing to forgive a portion of the principal stability on their home loans by an believed average of $ a hundred and fifty,000 every. This reduction for qualifying house owners could quantity to monthly cost savings of up to 35 p.c on mortgage loan payments, Financial institution of The us stated in a news launch on May seven, 2012.

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The principal reduction delivers from Financial institution of The united states House Financial loans are the immediate result of a $ twenty five billion settlement settlement previously this yr with 49 state lawyers general as properly as federal authorities who had been investigating allegations of abuses over the dealing with of foreclosures, as reported in March of this 12 months by the Linked Press. To the extent principal reduction and other modification instruments assist us flip mortgages headed for feasible foreclosures into long-phrase doing loans, it will be good for property owners, mortgage loan buyers and communities, Ron Sturzenegger, a legacy asset servicing government, stated in the assertion. Lance Denha, Esq. of the Regulation Places of work of Lance Denha commented nevertheless that The banking companies concerned have up to three many years to fulfill the provisions of this settlement although there are incentives for banking companies to help home owners in the initial twelve months.

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Financial institution of America said it planned to contact more than two hundred,000 homeowners who could be candidates for the provides, sending letters to a vast majority of them by the third quarter of this year. To be suitable for the principal reductions, nevertheless, property owners will have to meet specific conditions, like: getting a loan owned or serviced by Bank of The us owing a lot more on the mortgage than their residence is worth and getting at the very least 60 times driving on payments as of the stop of January. Mr. Denha was swift to be aware, Catering only to these borrowers 60 days or more powering on payments has the added gain to Financial institution of The united states to keep away from any potential authorized hurdles in circumstances where shoddy paperwork helps make it difficult for them to demonstrate it owns the mortgage loan and has the appropriate to foreclose. Its a strategic move by Bank of The united states to assist individuals property owners that it at first attempted to foreclose on during the Robo-signing period of time that resulted in the settlement. Many of the first troubles and irregularities nonetheless exist. The Connected Push observed at the time of the settlement that Bank of The us experienced the largest financial obligation under the settlement at $ eleven.eight billion.

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The base line is this, claims Lance Denha, Those who help them selves do well much more than they fall short. Those who are conditioned to waiting around for the condition or federal govt to make the financial institutions do the proper issue are probably to locate themselves with number of possibilities. The clever homeowner is presently pursuing his lender in the appropriate medium: the courtroom. He is nicely-ready, normally has retained an lawyer, has the proof of a securitized financial loan audit and can prove his scenario.

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The Regulation Place of work of Lance Denha P.A. is dedicated to make sure that each feasible avenue is pursed so that the property owners authorized rights are preserved. Actively monitoring the at any time modifying landscape of foreclosure regulations, recent foreclosures throughout the nation as well as point out imposed rules and methods related with foreclosure, is essential to ensure and safeguard these rights. The Legislation Workplaces of Lance Denha P.A. is a multistate legislation agency and assists lawfully defend wrongful foreclosure actions and make use of any and all lawful techniques obtainable to assist achieve preserving house owners legal rights. For further details or help, please get in touch with at 954-840-0770.

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