The Principal Reduction Program is designed to assist homeowners who owe more on the mortgage than what the home is actually worth.

This option makes it possible to obtain financial assistance to pay down the principal balance on the negative equity.

Those applying for the PRP must be in a position of experiencing an economic hardship that is combined with a significant downturn in the value of their main residence.

Homeowners that get accepted for the Principal Reduction Program have the potential to be granted up to $100,000 in aid.

The principle on the bad mortgage can be applied in several different ways which can include: a principal reduction, restructuring of the loan or eliminating a present non-interest bearing forbearance. Each of these reduction plans will help leave behind a more acceptable debt level for homeowners. This would result in a more affordable monthly mortgage payment.

Similar to the other programs, the PRP is subject to certain eligibility criteria for the borrower, which can include the following if:

You have recently experienced a financial hardship which prevents you from keeping up with your regular payments.

You have the ability to continue to make future mortgage payments once the revised figures have been calculated.

You are in a position to provide all relevant paperwork that can help satisfy the guidelines for the program (supporting documents proving the eligible hardship).