Responsible Homeowner Reward

April 27, 2010 08:47 ET

RH Reward Offers Incentive-Based Mortgage Relief to Help Responsible Homeowners in Areas Affected by High Levels of Negative Equity and Strategic Default

RUMSON, NJ--(Marketwire - April 27, 2010) - Underwater borrowers in areas like Northern California and South Florida are starting to receive letters offering them a cash payment to stay current on their mortgages. The offers, made to eligible borrowers by an innovative, new incentive-based program called Responsible Homeowner Reward ("RH Reward"), are cost free to the borrower. 

Unlike government or bank-sponsored programs, eligible homeowners are recommended for RH Reward by the owners of their mortgages. The amount of individual Rewards depends on many factors, including the size of the mortgage and its current loan-to-value ratio. Borrowers do not need to be delinquent to qualify. Write-down of mortgage principal, with its adverse consequences for the borrower's credit score, is not required. And the entire enrollment process can take place in as little as 48 hours. 

"Why would someone reward you for paying your mortgage?" asks RH Reward's Jason MacRae. "Because owners of residential mortgage risk are beginning to realize that a shared solution to the historic drop in home values experienced in this country over the past two years is needed if we are going to address this crisis, stabilize our communities and help responsible homeowners 're-equify' their personal balance sheets."

While the problem of underwater mortgages is considered to be particularly severe for borrowers in states like California, Florida, Arizona and Nevada, it is also a serious problem in major metropolitan areas in Michigan, Illinois, Ohio, Texas, Georgia and Maryland, MacRae noted. "We have reached out to borrowers in 45 states and Washington, D.C., and we're finding the same demand for RH Reward. Interest is particularly strong among homeowners who do not qualify -- or are stymied by high paperwork obstacles -- for government solutions."

Here's how RH Reward works:

  1. The homeowner with negative equity is presented with an initial RH Reward amount.

  2. To keep their RH Reward status active, the homeowner makes their full and timely mortgage payments.

  3. For a fixed period of time following enrollment, an additional amount of money will be added to the initial RH Reward amount for each month the homeowner maintains active status.

  4. Once the mortgage balance is paid in full either by sale of home, refinance of home, or paying off the mortgage, the homeowner can withdraw the entire RH Reward amount.

The Responsible Homeowner Reward is a unique program which aims to give responsible homeowners an alternative to strategic default. By providing a cash reward for timely mortgage payments, the RH Reward gives back to homeowners who are working to live up to their mortgage obligations. is an operating unit of Loan Value Group LLC. For more information, go to

Contact Information

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