Principal reduction is a revenue event for you.

This will not remove you but you will know if you can get any principal reduction to get a little closer to market value which will open your options up.

For instance large net profits can arguably be from your purchase process however perhaps reduction in construction costs is from him.

If you think it's going to run $500, demand $2,000 in credits / price reduction and settle for $1,000.

To my knowledge there has never been a "cram down" reduction of principal amounts owed in any ED process, only through bankruptcy at the federal level.

Since around 2010, and growing each year, more and more come due and since underwriting guidelines have become more strict, compiled with mismanagement and value reductions, the borrowers would need to come to the table with lots of cash to refit into a new loan, most of which don't have it, hence the increasing number of foreclosures and short sales.

If you had your home listed at a certain price and discussed with your realtor a price reduction, then followed up with an email to her confirming the new price you wanted it listed at...and then a month later pulled up the listing and saw that it was still listed at the old price...would you fire the realtor?

Let me clarify with some more oversimplifed information.refinance monthly payments: $200new mortgage monthly payments: $800operating expenses: $1,000monthly rent: $2,000Based on this, there would be no cash investment and no monthly cash flows, however it would result in a few thousand of income from principle reduction.

This is worth its weight in gold!

You'll make multiple price reductions, but still end up with a lower price than if you just priced it correctly from the beginning.A lease/option is a glorified rental.