Showing posts with label reduce payment. Show all posts
Showing posts with label reduce payment. Show all posts

Friday, May 08, 2009

Making Home Affordable Allows Modification of Second Mortgages

Making Home Affordable Allows Modification of Second Mortgages
On April 28, 2009, the Treasury Department announced expansion of the Making Home Affordable Program to help reduce payments on second mortgages. The Obama Administration took this action because as many as 50 percent of all at-risk borrowers have second mortgages and without modifying them the borrowers remain at a higher risk of default. Under the Second Lien Program, if the servicer initiates a Home Affordable Modification on the first mortgage, participating servicers will automatically reduce payment on the second lien in accordance with complex, but uniform, program criteria. As an alternative, servicers may extinguish the second lien in exchange for receiving a lump sum payment. For more details, read the Treasury Department's press release.

Myths vs facts

From the guru of agency, John Reilly: Regarding the Bright Analysis by Lisa Sturtevant, PhD Bright Chief Economist Our analysis shows that t...