A federal program that reduces your mortgage principal if you owe more toward your mortgage than your home is currently worth.
Principal Reduction Alternative, or PRA, encourages your mortgage lender to reduce the amount you owe. Currently there are over 100 loan servicers participating in this program.
To qualify for PRA, you must meet certain eligibility requirements:
These are just guidelines, of course. To see if you are fully eligible, you’ll need to contact your mortgage servicer. Of course, a housing counselor from a HUD-approved housing counseling agency can answer your questions and help you understand all of your options.
Counseling is free, and can help you apply for the right program for your unique situation. Talk to a housing counselor today.