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Now Principal Can Be Reduced On People’s Mortgage Amount

By Expert Author: Perry Marsh

Today a lot of people take pride in owning the best assets which they always dreamt off. The top position and high pay packages in the corporate and the industrial sector has helped in broadening the thinking of individuals who can very easily indulge in buying things for themselves. Today there are a lot of banks, financial institutions and creditors who have also taken on to assist people in achieving their dreams. There are some items which people cannot readily afford, in such cases because people want to own it anyhow, these institutions provide the easy capital to the people, allowing them to achieve it.
In the process, these institutions make the person sign an agreement where they keep a certain asset of the individual as a security till the time the whole capital is not returned in a given period of time. Many times people end up failing to return the full amount, in such cases the institutes legally get the right to own the security, leaving the person without any options other than loosing what they possessed.
There are some legal experts who have the finest and legally approved solutions for such and many other problems. Many time people inquire on How to reduce the principal on their mortgage, one of the most effective way to removing the mortgage is by using Chapter 13 reorganizational plan which provides certain avenues like:

Loan Modification: wherein by pursuing a loan modification through the chapter 13 plan, people are guaranteed under HAMP guidelines that the mortgage company must consider the modification and by removing the second mortgage or home equity loan and other unsecured debts, people may be in a better qualifying situation to receive a loan modification due to a reduced debt-to-income ratio.
Escrow Acceleration: wherein the experts can resolve mortgage escrow acceleration by taking the escrow shortage and spreading it over the length of the 36-60 months plan at 0% interest against the typical 6-12 months that the mortgage company sets up.
0% interest repayment on any mortgage arrearages: wherein of people have gotten behind the payments again, these arrearages are spread out over the life of the plan at 0% interest, and
If people have a rental property, this program will offer a unique opportunity to reduce the principal mortgage balance to current market value. By using the tenant's rent payments, people can own their property free and clear in 3 to 5 years.

Another major issue arises when people deal with the Consolidate credit card debt. Many people make the mistakes of consolidating all of their credit cards into one loan or worse, getting a Home equity loan to pay off these debts. Through the Chapter 13 reorganization plan, the experts are able to provide certain benefits to the people which are:

Full Debt consolidation: wherein all debts like medical bills, personal loans, credit card bills, and second mortgage can be consolidated and most often effectively reduced. Whatever portion is left unpaid at the end of the program is legally eliminated.
0% interest repayment on all unsecured debts and debts arrearages.
People can pay whatever possible and eliminate the rest: wherein legal experts establish a monthly budget that focuses on paying people's most important bill first like mortgage/rent, vehicle expenses, utilities, food and clothing. Their unsecured creditors only get whatever is left over after paying off for all bills.
Court protection from the creditors: wherein people's creditors are unable to call them or proceed with judgments while people are under the protection of Chapter 13 reorganization, and
Creditors are bound by the bankruptcy laws and don't have the ability to ‘opt out' of the reorganization plan and if this happens when the creditor has not filed a claim with the court in order to get paid, the debt is discharged.

Author’s Bio:
The Author talks about the scenarios where people have so much money and they feel the need to own their favorite asset, but sometimes when the particular asset is outside their reach, the bank or other financial institutes assist them by lending money. Also talks about How to reduce the principal on your mortgage with the ways and procedure involved in it. Also speaks about Consolidate credit card debt and the steps to follow.

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