Later today, President Obama will disclose a $75 billion plan designed specifically to address the problems of homeowners who are having problems making their home loan payments. Once the plan is announced, I will update with the details, but here is some of what is expected to be included:
Refinance assistance for borrowers who owe more than 80% of their home's value;
Cash incentives for for loan servicers to modify loan payments to no more than 31% of borrower's income, and cash incentives for borrowers to stay current on their payments;
Require all financial institutions receiving government funds to participate in a standardized loan modification program; and
Allow judges to modify mortgages during bankruptcy.
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