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The Evolution of Loan Modification

The lack of standards and incentive for lenders to modify mortgages are primary issues addressed by the Obama Administration's $75 billion foreclosure mitigation plan, announced on February 18th. Key elements include:

• providing incentives for lenders to more aggressively reduce homeowners' mortgage payments,
• rewarding lenders who modify loans of borrowers who are current on their mortgage payments,
• rewarding homeowners who receive modifications and stay current on their mortgages, and
• creating a single industry standard for processing and granting loan modifications.

This plan is set to take effect on March 4, 2009, and holds the potential to make the loan modification process more transparent and feasible for many homeowners.

<< Are You A Good Candidate for Loan Modification? I Loan Modification Basics >>

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More on FrontDoor:

• First-Time Homebuyer's Guide
• Experienced Homebuyer's Guide
• Foreclosure Guide
• Tools and Calculators
• How to Get Your Mortgage Modified
• Protecting Your Home & Finances in Tough Times