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Principle reduction - is this the answer?

By
Real Estate Broker/Owner with CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents

Principle Reduction Appeal letter from State Attorney Generals and the IMF sent to FHFA Acting Director

The Acting Director of the FHFA received a letter from 11 state Attorney Generals pressing him to allow both Freddie Mac and Fannie Mae to proceed with principle mortgage reductions. The AG’s argued for principle mortgage reductions on the basis of preserving assets and preventing unnecessary foreclosures. They further outlined that the qualifying guidelines for a principle reduction would have to consider all a homeowners debts – not just the mortgage payment – and be standardized in form, transparency and disclosure.

It is the hope of all involved, to give homeowners the incentive to maintain their mortgage payments which would have a direct result of lower foreclosures throughout the nation.


The IMF (International Monetary Fund) director, Christine Lagarde, added her appeal that the acting director of the FHFA seriously give consideration to the state Attorney General’s letter to reduce the American homeowner’s mortgage debt.

If the Acting Director allows the principal reduction appeal to prevail by agreeing to allow it – this could make a huge difference for the future of homeowners being able to stay in their homes and avoid foreclosure.  Most strategic defaults would seriously grind to a halt. Short sales would no longer be necessary. The housing recovery could actually take off. Buyers would be able to buy. Sellers would be able to sell.

Principle Reduction on mortgage balances could mean the difference between keeping your home or losing it.

Principle reduction help from Monument Short Sale Realtors
Stephanie Anson
Anson Properties - Gainesville, FL
Estates | Homes | Land | Investments

Laurie, thanks for sharing this informative and thought-provoking post. Keep up the good work as a top Denver short sale agent!

Apr 18, 2012 09:52 AM
Bas Panch
SCV Home Buyer - Valencia, CA

Hi Laurie,

Thanks for sharing this post. Hopefully the appeal gets approved, it seems like it's the best thing for everyone involved. Who doesn't want to see the housing recovery finally take off? Thanks again for sharing your expertise as a Denver short sale agent.

Apr 18, 2012 10:36 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Hello Laurie, thumbs up for sharing this article. Your expertise as a real estate specislist is being highlighted on this post. All the best!
Jun 20, 2013 02:31 PM
Petra Norris
Lakeland Real Estate Group, Inc. - Lakeland, FL
Realtor, Lakeland FL Homes for Sale
Great post Laurie! This is very informative and easy to understand. This will really prove helpful to all readers out there. Keep it up!
Aug 14, 2013 12:37 PM
Waynette Hoover Araj
Keller Williams Realty - Asheboro, NC
Connecting your Dreams with the Right Real Estate
Hi Laurie, excellent article that provides information on Principle reduction. Continue on what what you are doing and  Keep it up!
Aug 16, 2013 12:27 PM
Erika Rogers
Red Rock Real Estate ~ Southern Utah's Largest Independent Brokerage - Saint George, UT
St George Utah Real Estate & Relocation Specialist
Very well said Laurie. Impressive work! This will surely prove helpful to everyone. Thank you for sharing. Keep up the good work!
Aug 19, 2013 12:18 AM
Melissa Muse Wiggans
Real Estate Muses - San Antonio, TX
CRS, GRI, ABR - Real Estate Muses
This is very good information Laurie. You laid it all out pretty well. Keep it up and stay the best!
Sep 04, 2013 04:46 PM