Just four months after its launch, the Responsible Homeowner Reward (RH Reward) program has offered

more than $86 million in rewards to eligible borrowers nationwide as an incentive to remain current on their mortgage payments.

As DSNews.com previously reported, the RH Reward program was developed by the Loan Value Group LLC (LVG) in response to the increasing rate of “strategic defaults,” in which homeowners walk away when the value of their mortgage exceeds their house value — even if they can afford the monthly payments. According to recent survey by the University of Chicago and Northwestern University, about 31 percent of foreclosures

in March 2010 were considered strategic defaults, up from 22 percent in March 2009.

Rumson, New Jersey-based LVG said its RH Reward program addresses this problem by providing monetary “rewards” to homeowners who remain current on their payments without changing the terms of the original mortgage note or reducing principal. The size of the reward is dependent on many factors, including the size of the mortgage, the amount of negative equity, and region of the country.

This financial compensation, offered through participating lenders, is awarded on a monthly basis but cannot be withdrawn until the homeowner’s mortgage balance is paid in full either by selling the home, refinancing, or completing all monthly payments required.

“Reaction to the RH Reward program has been tremendously positive from both borrowers and financial institutions,” said RH Reward’s Frank Pallotta. “Borrowers are grateful that their lending institution has proactively reached out to help them with a reward to continue making timely payments on their mortgage, and participating financial institutions say that borrower acceptance of this innovative new tool has exceeded their expectations.”