Reducing Negative Equity Through Principal Reduction
When dealing with a negative equity vehicle situation where you’re attempting to exit your car loan, as we’ve discussed extensively on this channel, one of the strategies to lower your negative equity or upside down or underwater amount involves reducing the loan principal balance by eliminating junk fees and removing dealer add-ons.

Changes in Federal Government Support
Previously, there was substantial support available for this process from government agencies. However, following recent federal government budget cuts, some of the federal government agencies that would provide assistance with this no longer have the personnel.

State-Level Solutions Emerging
Nevertheless, much of this support is being assumed at the state level. This is a news article in a publication called Auto Finance News. It is a trade journal for car loan financial institutions and what they’re reporting is compliance challenges mount.