Loan Modification

Loan Modification with Principal Reduction

This product is designed to bring the current qualified homeowner’s mortgage balance down to market value. This will lower monthly payments and eventually provide homeowners with equity by paying down their loans plus any appreciation. This way, the homeowner will gain on all future appreciation and help to establish a future wealth for themselves and their families.

Many homeowners hold mortgages with principal balances higher than the current market value of their home. By purchasing these notes below the current market value, HOPC will be able to modify the mortgage, lowering the mortgage balance to the home’s market value.

Many homeowners have attempted to modify their loan through their current lenders and current federal lending programs only to be declined because payments are higher than their income can support. With the principal reduction, the loan amount is reduced, making payments lower and qualification easier. Also, the file is underwritten using discretionary income table (similar to the VA program) and not housing ratios.

Many homeowners want to stay in their property and could afford to stay but stopped paying because they felt it was a bad business decision. By bringing them to market rate, they will be once again happy to stay in their home. Qualified owners will have the option of a 20- or 30-year fixed rate loan for their modification.