Without such a principal reduction the homeowner would not be able to sell the home.

He said that, on average, 1st Alliance had negotiated a principal reduction of $86,000 on a $256,000 loan, a 33.5 percent cut, to $170,000.

You're off the hook for the principal reduction they were demanding.

Any principal reductions received during the loan period are not available to be drawn on, but rather have paid down the loan balance.

The agreement provides that banks choosing principal or interest reduction are to receive Mexican Government bonds for their debt.

Japanese banks have opted mostly for principal reduction, bankers said, but a few have offered new loans.

Far more than 20 percent of the choices, however, are for principal reduction.

In the current environment, principal reduction is beyond unpopular, it is unthinkable.

The incentive will be applied directly to your loan balance annually-$1,000 each year-and over five years the total principal reduction could add up to $5,000.

Regardless of expert advice to provide principal reduction to homeowners whose homes are underwater, DeMarco has personally blocked it.