Principal Reductions

Has anyone had a client receive a notice of conditional acceptance for a Principal Reduction from Bank of America? Any other national lenders? They are happening, I have some of them here in my office and I have a strong theory. We have researched a principal reduction negotiation shop with a couple of attorneys and a certified forensic mortgage auditor and a few CPAs that have negotiated 334 principal reductions over 24 months.  These guys are under the national radar screen.   Many of these principal reductions are 40-60 % of initial face principal value of the note. We have reviewed the principal reductions and the re-casting of these loans. These are real. We are now in partnership with a member of this group. I am extremely excited about this model because it works. Principal reduction has been the golden chalice of the mortgage modification industry.  Any professional who is in the good fight against foreclosure fraud and helping distressed homeowners has been searching for the angle we just found. The banks right now are over-run with what physicists call momentum.  The momentum to foreclose.  The extremely strong, manufactured momentum to foreclose on homes is fueled by the lenders looking for the least resistance/ shortest distance to hitting loss share insurance funds$$.     Foreclosure is an absolute loss since none of these homes are worth as much as the homeowner owes.  80% of the loss created by selling the home as REO and subtracting this sale price from the face value of the note creates an absolute  loss  and is paid by the FDIC or some other government or CDS insurance loss subsidy.  You see, accidentally the banks got caught up in their own executives’/controlling shareholders’ hyper-greed.   They have used their amazing Washington DC lobby over the last three decades to wrest control of the US financial system so successfully that now chairmans of investment banking firms run the Treasury and the Federal Reserve.   The payday for running an Administration is really in the aftermath of the administration’s failure to the US citizens.    This is evidenced by the fact that guys from the Clinton & Bush  administrations are allowed to purchase failed banks with borrowed money guaranteed to create massive returns by the US Government.   Ok, (deep breath) let me reel in my A.D.D. again.      These same bankers could have chosen another route.     Recasting subprime predatorial notes at 90% NPV also allows the banks to receive subsidies for the losses.  It also lets people keep their homes and pay more affordable mortgages and stem the huge flow of inventory or REO onto the market.   This is how our partner Principal Reduction Consultants, LLC negotiates reductions for you.     Check out this video (below)  a video embedded from the FDIC’s website, showing that these agreements were made to let people keep their homes but were bastardized by the foreclosure mills….   Watch it and then visit http://www.PrincipalReductionConsultants.com