Search this site »
While doing their best to try and solve the current mortgage crisis in New York, in particular New York City & Syracuse, NY, the FDIC's and other agencies in the government solutions bring cumbersome language. We are bombarded with new terms that take a while to wrap our brains around and fully understand. The terms "principal reduction" and "principal forbearance" are no different. They're confusing. As we at WayForward Mortgage understand it, here's the difference and distinctive elements of both. Forbearance vs Reduction: tolerance vs forgiveness. A quick explanation of confusing terms. The word "forbearance" is simply a synonym for the word "tolerance." That is, when someone is being nice to you. As we'll see later in the explanation (and as is the case in almost all instances in life) "tolerance", though nice, isn't nearly as nice as "forgiveness." Let's elaborate. At some point we were all children. Most of us had siblings who were either younger or older, and at some point our parents instructed us to "be nice to your brother/sister." In order to maintain order around the house our parents knew that even though we got on each others' nerves we had to play nice with our siblings. This is forbearance. We don't like doing it, but we have to and it beats the alternative of always being in trouble. Then there was that time that your sibling punched you or pulled your hair or ate the last cupcake and there was just no reasonable option of being nice. This kind of grievance transcended being nice and demanded pure forgiveness. That didn't mean you would necessarily forget the slight, but it did mean in order to have any chance at making things right you were forced to forgive them for what they had done. This is what we'll call Familial Principal Forgiveness. Tolerance just didn't have the muscle to get things back on track and forgiveness was our only option. What does this have to do with mortgages??? Great question. The difference between your bank "tolerating" your delinquent payments (and principal balance) and "forgiving" your payments (and principal balance) is the same as the end of the day in a sibling disagreement. In a "tolerance" situation (Principal Forbearance) you will still owe the bank the full balance of your mortgage though you will likely only be paying on a reduced amount of principal. For example, you may have a $500,000 mortgage that you're now only amortizing at $400,000 in order to make the payment affordable. The $100,000 is not forgiven long-term and you'll eventually have to pay up when you sell the home or refinance it down the road. In a Principal Reduction the bank takes the incredible step of forgiving the $100,000 completely and modifying your loan to the $400,000 amount and that's that. Thus we can see that tolerance is a wonderful thing and forgiveness more so. WayForward Mortgage and its team members have been actively involved in principal reduction and forbearance, homeownership and pre-foreclosure advocacy for over six years, offering Rochester, Albany, and other New York cities expert principal reduction services. We have worked with the nations top lenders including: Wells Fargo CitiMortgage Chase Bank of America Ocwen Litton National City Saxon Mortgage EMC Mortgage JPMorgan And many, many more We have successfully negotiated THOUSANDS of workouts dealing with: Forbearance Agreements Partial Claims Loan Modifications Short Sales Our expertise has been acclaimed by the top loss mitigation officer at the second largest bank in the country as “the best in the business.”Contact Principal Reductions today with any questions or concerns you might have pertaining to Principal Reductions or at the following address and/or phone number:WayForward Mortgage 2929 Carlisle St. | Suite 375 Dallas, TX 75204 p 214 | 233 0752
While doing their best to try and solve the current mortgage crisis in New York, in particular New York City & Syracuse, NY, the FDIC's and other agencies in the government solutions bring cumbersome language. We are bombarded with new terms that take a while to wrap our brains around and fully understand. The terms "principal reduction" and "principal forbearance" are no different. They're confusing. As we at WayForward Mortgage understand it, here's the difference and distinctive elements of both.
Forbearance vs Reduction: tolerance vs forgiveness. A quick explanation of confusing terms.
The word "forbearance" is simply a synonym for the word "tolerance." That is, when someone is being nice to you. As we'll see later in the explanation (and as is the case in almost all instances in life) "tolerance", though nice, isn't nearly as nice as "forgiveness." Let's elaborate.
At some point we were all children. Most of us had siblings who were either younger or older, and at some point our parents instructed us to "be nice to your brother/sister." In order to maintain order around the house our parents knew that even though we got on each others' nerves we had to play nice with our siblings. This is forbearance. We don't like doing it, but we have to and it beats the alternative of always being in trouble.
Then there was that time that your sibling punched you or pulled your hair or ate the last cupcake and there was just no reasonable option of being nice. This kind of grievance transcended being nice and demanded pure forgiveness. That didn't mean you would necessarily forget the slight, but it did mean in order to have any chance at making things right you were forced to forgive them for what they had done. This is what we'll call Familial Principal Forgiveness. Tolerance just didn't have the muscle to get things back on track and forgiveness was our only option.
What does this have to do with mortgages???
Great question. The difference between your bank "tolerating" your delinquent payments (and principal balance) and "forgiving" your payments (and principal balance) is the same as the end of the day in a sibling disagreement. In a "tolerance" situation (Principal Forbearance) you will still owe the bank the full balance of your mortgage though you will likely only be paying on a reduced amount of principal. For example, you may have a $500,000 mortgage that you're now only amortizing at $400,000 in order to make the payment affordable. The $100,000 is not forgiven long-term and you'll eventually have to pay up when you sell the home or refinance it down the road. In a Principal Reduction the bank takes the incredible step of forgiving the $100,000 completely and modifying your loan to the $400,000 amount and that's that. Thus we can see that tolerance is a wonderful thing and forgiveness more so.
WayForward Mortgage and its team members have been actively involved in principal reduction and forbearance, homeownership and pre-foreclosure advocacy for over six years, offering Rochester, Albany, and other New York cities expert principal reduction services. We have worked with the nations top lenders including: Wells Fargo CitiMortgage Chase Bank of America Ocwen Litton National City Saxon Mortgage EMC Mortgage JPMorgan And many, many more We have successfully negotiated THOUSANDS of workouts dealing with: Forbearance Agreements Partial Claims Loan Modifications Short Sales Our expertise has been acclaimed by the top loss mitigation officer at the second largest bank in the country as “the best in the business.”Contact Principal Reductions today with any questions or concerns you might have pertaining to Principal Reductions or at the following address and/or phone number:WayForward Mortgage 2929 Carlisle St. | Suite 375 Dallas, TX 75204 p 214 | 233 0752
WayForward Mortgage and its team members have been actively involved in principal reduction and forbearance, homeownership and pre-foreclosure advocacy for over six years, offering Rochester, Albany, and other New York cities expert principal reduction services. We have worked with the nations top lenders including:
We have successfully negotiated THOUSANDS of workouts dealing with:
Our expertise has been acclaimed by the top loss mitigation officer at the second largest bank in the country as “the best in the business.”
Contact Principal Reductions today with any questions or concerns you might have pertaining to Principal Reductions or at the following address and/or phone number:
WayForward Mortgage 2929 Carlisle St. | Suite 375 Dallas, TX 75204 p 214 | 233 0752
emc mortgage forgive home home loan interest only loan mortgage mortgage loan mortgage payment mortgage rate option arm refinance saxon mortgage year mortgage
(0 Votes) Click here to rate this company
Principal Reductions maintains an RSS 2.0 Feed. Click the icon to subscribe to this feed.
Optimized by Lead Maverick |
Terms of Use |
Add Your Content |
Site Map
