short refinance of underwater loan modification
principal mortgage reduction
Principal Reduction

Don’t sell yourself
short.
If you really want to keep
your home and make it
more affordable you
have 2 options.

1. Loan Modification-
Lower your interest rate
reducing monthly
payments slightly, but
does not address
negative principal
balance. Every
payment you make you
will never get back

2. Principal Reduction
- Reduce  principal
balance to at or bellow
today's market value.
Every payment you
make is building equity
for your future.










If a homeowner is trying
to get a principal
reduction, short pay
refinance, short sale,
loan modification or
avoid foreclosure they
need to check their
Mortgage for mistakes.
Any homeowner,
attorney, mediator or
negotiator who does not
use BOTH Forensic and
Securitization Loan
Audits are years out of
touch with what is
working today.

If anyone uses only the
Forensic Loan Audit
without looking into the
Securitization portion of
the life of the loan they
are either uneducated,
incompetent or
unscrupulous.

Lenders are bigtime
investors and master
negotiators. When trying
to get a lender to accept
a principal reduction,
short pay refinance,
short sale, loan
modification or avoid
foreclosure you are in an
adversarial position to
them. Much like going
into battle you want to
use all your tools
available to you.
Negotiating with your
lender with only the
evidence from a
Forensic loan Audit is
like going into battle with
only ground troops.
Using a Securitization
Audit in conjunction with
a Forensic Loan audit is
making use of all your
forces to win in a battle
like using both your air
forces and ground
troops.








You get peace of mind
that your loan and equity
are now reset to today’s
market value.






Put the loss on the
lenders and take
control in this volatile
market.






Have you done
everything right but the
outside influence of
the market has caused
your home values to
plummet?








You can sell or
refinance at any time
after our Principal
Reduction Program has
reset your LTV to todays
market value.
buying mortgage loan
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Disclaimer: All information on this site may be shared or duplicated for your use.
RealEstateSecretsToday.com does not perform Forensic Loan Audits, Securitization Audits, Loan Modifications, Principal Reduction, Owner
Financing or Short Sales.
    The New Rules of Principal Balance Reduction
A Principal Balance Reduction can be accomplished a few ways:
• Short Pay Refinance. The Lender accepts a payoff lower than the full amount they are owed and the
Homeowner gets a new loan with a new Lender.
• Investor Note purchase. A hedge fund would negotiate to buy the actual note at a discount from the
current lender and then they would adjust the current balance and collect payments from the homeowner.
• Negotiation. Based on real violations found to be committed by the lender before, during or after the life of
the loan a homeowner may be entitled to monetary damages and then negotiate to get a principal reduction.
• Litigation. Based on real violations found to be committed by the lender before, during or after the life of the
loan a homeowner may be entitled to monetary damages and then aggressively sue for a principal reduction.
• Bankruptcy. Depending on how the property is being used (primary residence or investment) and factoring in
the financials concerning negative principal balance, current fair market value and total homeowner debt, Bankruptcy
chapter 7, 11 or 13 may work in conjunction with real violations found to be committed by the lender.
• Quiet Title Action. A Quiet Title action is a Court procedure of legal action to remove the lien whereas the
Homeowner is challenging the validity of the debt. Best used in combination with Material Evidence from a
Securitization Loan Audit which shows the Note has been lost or purposely destroyed.

   










      Principal Balance Reduction is:
     • NOT a Loan Modification
     • NOT a Short Sale
     • NOT a Forbearance
     • NOT a Lease Option
     • NOT a Money Merge Account
     • NOT a Foreclosure Bailout



Who should go after a Principal Reduction?
Homeowner who owes more than what the home is worth today "upside down" or "under water"
Pre-foreclosure, FORECLOSED or even recently EVICTED after foreclosure is possible
Anyone with an Option ARM (negative amortization)(pick a payment) type mortgage
Anyone with an Adjustable Rate Mortgage where their payment have increased
Anyone where the original Lender is now out of business has a greater chance
Anyone with a loan originated between 2001 - 2008 has a greater chance
Currently behind on payments, history of late and/or partial payment
Anyone who suspects their Lender of Predatory Lending
Anyone who suspects unfair practices by their Lender
Anyone who was bait and switched at time of closing
Anyone denied a Loan Modification
Every Homeowner reading this


Who can qualify?
Any property use; primary residence, vacation home, investment property or commercial
Any Property type; Single Family, Condo, Townhouse, Residential Multi Unit, Commercial
Must be open minded to take on something you never thought you would have to do
Must be willing to pay for the cost of services performed by industry professionals
Must be willing to ask for help by seeking out those people doing good for others
Self Employed, Regular W2 Employee, 1099 Independent Contactor are all OK
Must have steady verifiable monthly income
Any home value, No minimum or maximum
No requirements for length of time on title
No requirements for length of time on job
Any and all credit ratings will qualify
No additional assets required
Co-Borrowers are OK
Notice of Default OK
Pre-foreclosure OK
All 50 States


How Long Will the Process Take?
No standard time frame, varies on a case by case basis
If the Material Evidence against the lender is strong it may take only 3 months to complete
If Litigation is involved and the Lender fights the process it may take 6-12 months (note: if a debt is
in the process of a dispute the lender cannot collect payments and cannot report lattes to the credit agencies)


Guarantees and Warrantees
There are no guarantees when starting any type of Principal Reduction Program
Actual results are on a case by case basis and are dependent on;
How much is currently owed
Fair Market Value of the property today
Violations found that were committed by the lender
Options available based on violations found in the existing loan
How far the homeowner is willing to take the process based on those options


Benefits of the Principal Reduction Program for the Homeowner
Lower your monthly payment
No Credit Score qualification required
Build Equity with each monthly payment
Secure future with firm control of the property
Reduction in principal balance at or below current market value
Property Taxes and Property Insurance satisfied at the same time
No Tax Repercussions. Consult with your Tax Advisor for further information
Keep your home, no need to move out, never lose Title/Ownership of your home
Rebuild your credit with no permanent scars to prevent you from getting any future loans


Possible Costs the Homeowner could pay depending on which program type
Total out of pocket fees would depend on violations found, options available and how far to
proceed with those options
Short Refinance or Investor Note Purchase could have total out of pocket fees as low as $795,
while some complicated Bankruptcy cases where the Lender fights the claim could go as high as
$30,000
The actual cost to do nothing could be hundred of thousands of dollars


How much of a Principal Reduction can you get?
20-100%. Yes 100% has been done on some extreme cases.


Can a Principal Reduction be done with any Lender?
Yes, but they won't just tell you that because, Banks are big time investors and master negotiators.
Banks are in business to make money. Two things your bank will never tell you; they are distressed
because of the market and they are willing to participate in any solution that would cause them to
lose money.

                      Investigate Your Loan Before You Attempt Negotiations!


The best possible results
If you want the best possible results, priority treatment and timely responses from your lender you
need material evidence. Principal Reduction negotiation should only be attempted after completing
a Forensic and a Securitization Audit of the loan in question. Why rely on a charitable contribution
from you lender because of a hardship? You may be able to turn the table on the lender, seize
control of your situation and go on the offensive.

Forensic and Securitization Audits reveal the problems to both parties
A Forensic Audit is a detailed investigation of your loan documents from the time you applied for
credit up to and including origination. The investigation is done by experienced auditors, who are
well versed in the Local, State and Federal laws that protect consumers and guide lending
practices. A Securitization Audit reveals the path of how the Note was serviced after origination
until the present day. If any violations are found you can get much better results and open up
more options.

The desire to solve the problem is stronger for both parties
When a Forensic and a Securitization Audit is done, a homeowner is finally able to show their
Lender that the real reasons behind their inabilities to pay or continue to maintain payments is
because the Homeowner is the injured party. When you can reveal to your Lender all the violations
that exist in your loan, not only have you shown why you have struggled with the payments, but
you have shown the problems the Lender has too. It is in the Lender's best interest to get this
situation resolved and it is in both parties best interest if these violations can be resolved by
accepting a Principal Reduction which would correct past violations and give all parties a winning
and sustainable relationship.


Equity is neither created nor destroyed, it only changes hands.
YOU may be able to get your equity back.


Three Step Process

Step 1 Pre-qualification
Free no obligation consultation to gather information in order to determine the best option to meet
the goal you would like to accomplish.


Step 2 Processing
Educate you on what is happening in the industry today
Inform you about the best option to accomplish your goal
Explain how the process works from start to finish
Discuss possible outcomes towards accomplishing your goal
Gather required documents and submit complete package to assigned representative
Verification of receipt of all required documents
Complete application and collect payment
Submit file for processing

The first process of a Principal Reduction should always be to find material evidence to prove your
case. From 2001 until 2008 the financial institutions committed many errors, omissions and fraud
when lending money for home loans due to lack of governmental oversight in conjunction with
Wall Street greed.

The best way to find material evidence of lender wrongdoing is to audit everything about your
Loan from the time you filled out the loan application until the present day.

Two tools are used to investigate if any errors, omissions or fraud exist against your lender.
1. Forensic Loan Audit. This checks all the records from the time of loan application up to
Origination, when you signed the promissory Note.
2. Securitization Audit. This investigates the activity after the time the lender received your signed
promissory Note, everything they did with it and if there have been any unfair practices in the
servicing of the loan up to the present day.

Homeowner Required Documents
Final Loan Application (Form 1003) (both initial and final if available)
Final Truth in Lending Disclosure (both initial and final if available)
Notice of Right of Rescission or Right to Cancel (refinance only)
Mortgage broker/loan origination agreement (if applicable)
Loan Modification acceptance documents (if available)
Mortgage/Deed of Trust and any riders attached
Property appraisal report (if available)
Final HUD-­1 Settlement Statement
Most recent Mortgage statement
Good Faith Estimate
Promissory Note


Step 3 Resolution
Present Material Evidence to homeowner so they can make an informed decision to move
forward
Present package to lender and negotiate for Principal Reduction
Final documents signed


Work flow of a successful Principal Balance Reduction Program
1. Interview to get homeowners side of the story and current situation
2. Education about what is going on in the industry today
3. Collect required documentation
4. Pre-Screen required documentation
5. Evidence of Lender wrongdoing discovered, order full Forensic and Securitization Audits
6. Completed Investigation of Forensic and Securitization Audits
7. Findings of Forensic and Securitization Audits presented to Homeowner and facts explained
8. All options of how to proceed with Negotiating presented to Homeowner for review
9. Homeowner makes an informed decision on which option is best to move forward with
10. Proposal Package prepared, then presented to Lender
11. Solution accepted by all Parties
12. New payments either with the same lender at a new reduced loan amount or possibly a new
loan with a new lender which is determined during the negotiation phase

 
Forensic Audit Example
Securitization Example
Principal Balance Reduction Guide
Principal Balance Reduction Guide