Back in March, the Obama Administration rolled out its loan modification plan and this news report details seven key points of the plan:
Homeowners default because they cant make their payments
Loan services are required to reduce payments to no more than 38% of income while the government will chip in to bring that down to 31%
Both loan services and homeowners will receive cash incentives for modifying loans
Only owner-occupied residences qualify
A loan service can make its decision on which loans to modify by putting a property through a “net present value test”
Incentives will be offered to … Read the rest