Mortgage Modification Obama
The Obama mortgage modification plan is finally underway. The Treasury
Department announced a few of the participants who signed up for the
Obama mortgage modification plan. These companies included JPMorgan Chase,
Wells Fargo, Citigroup along with GMAC Mortgage and a few others.
Distressed home
owners have been eagerly awaiting the
mortgage
modification program launch since Obama first announced it
in Feb.
The modification plan calls for
the services to reduce interest rates so that the monthly
obligation in no more than 38% of a borrower's pre tax income,
and then the government would kick in money to bring payments
down to 31% of income. Servicers can also reduce the loan
balance to achieve these affordability levels. The government
with share in the cost, up to the amount the servicers would
have received if it had reduced the interest rates.
