What is Principal Forgiveness?

Depending on who currently owns your loan (also referred to as the investor), your mortgage servicer may use “principal forgiveness” as a way to create an affordable monthly mortgage payment through a loan modification. Principal forgiveness is when the bank permanently writes off, or forgives, a portion of the principal amount that you owe on your loan.

At Resmodo, we can help you understand loan modifications, and if you are applying for one, we can work with you to put together a loan modification application. Call now or book a free consultation.