there are a lot of banks, financial institutions and creditors who have also taken on to assist people in achieving their dreams.

1. Now Principal can be Reduced on People’s Mortgage Amount
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,

2. 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.