Details of the loan modification program
Only loans where the cost of the foreclosure would be higher than the cost of modification will qualify. The modification plan calls for the bank to reduce interest rates so that the monthly obligation is no more than 38% of a borrower's pre-tax income, and the government would then kick in money to bring payments down to 31% of income.
Mortgage servicers (banks and mortgage companies) can also reduce the loan balance to achieve these affordability levels, and the government will share in the cost of the reduction, up to the amount the servicer would have received if it had reduced the interest rates.
Please contact your bank. Do not ignore the problem,y ou might be able to get help.
More updates on the way.
Frank Harris
240-472-9008
That is a pretty good deal if you can get your payments to 31% of income. I would guess that is if it is your primary residence.