Atlantic Mutual Announces Launch of New Principal Reduction Program

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Atlantic Mutual releases new program to assist homeowners who owe more than their home is worth by eliminating their negative equity.

Today Atlantic Mutual is proud to announce the launch of their new Principal Reduction Program. After almost a year of development, the program promises to finally provide options for those homeowners who owe more than their home is worth.

A Principal Reduction Program (often referred to as "PRP" or “Principal Reduction Loan”) is a program designed to help people who owe more than their house is worth. It’s a property relief program for people that are “upside down” on their mortgage, meaning the property is worth less than their current mortgage balance (negative equity). The Principal Reduction Program enables homeowners to reduce their mortgage to current market value, often down to 90% LTV (Loan-to-Value), by securing a new loan with a new lender through a hybrid short refinance, the essence of the Principal Reduction Program.

Once qualifed for the principal reduction, a client’s loan joins the pool of other loans from the client’s lender (usually numbering in the hundreds). The loans are submitted to the lender as a portfolio for purchase. Atlantic Mutual’s investment group, working in collaboration with government funds, purchases the portfolio from the lender. After the portfolio is purchased, a new loan is financed at the current market value, eliminating all negative equity.

Banks will agree to the program because they can now utilize U.S. Government TARP funds (Troubled Asset Relief Program funds) to help recoup their losses after agreeing to reduce a homeowner’s mortgage amount. The Troubled Asset Relief Program (TARP) is a program of the United States created to purchase assets and equity from financial institutions to strengthen the financial sector; it is the largest component of the government's measures in 2008 to address the sub-prime mortgage crisis.

Brian Correa, senior analyst for Atlantic Mutual, explains what it takes to qualify: “Most importantly, a homeowner must have negative equity in his/her home (owe more than the home is worth), documented income, and a debt-to-income ratio of 50% or less.” He goes on to state that “qualification basically depends on the homeowner's ability to pay the new mortgage.

“Our consultants are able to work with each individual client to aid in qualification for a Principal Reduction Program. By working with clients to reduce insurance payments, clear debt, reduce property taxes, and help with financial management, we are often able to lower debt-to-income ratios to qualifying levels for most clients.”

Atlantic Mutual doesn’t stop with just the Principal Reduction Program; they offer an array of consulting services for residential homeowners. “As powerful as our principal reduction program is, what is even more powerful is our ability to help homeowners even more comprehensively by offering other interest and money saving programs,“ explains Mr. Correa.

“Our Debt Management, Bi-Weekly Mortgage Acceleration Program, as well as webinars and educational tools, help our clients to improve their overall financial situation. Did you know you can payoff your 30-year mortgage seven years early with our Bi-Weekly product?” he asks.

Additionally, Atlantic Mutual’s new website promises to help educate the public about this amazing new program. “This website gives us a platform to educate the public about the program. Quite frankly, it contains the most thorough information available. But, to be honest, the most rewarding aspect of our Principal Reduction Program is the fact that we are able to help so many homeowners!” exclaims Brooke Errett, managing partner for Atlantic Mutual.

For questions or inquires please call 888-850-6772 or go to Atlantic Mutual’s website at


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Brian Correa
Atlantic Mutual
888-850-6772 ext. 1
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