Mar 26, 2010

Lower monthly payments for some?

Here are some proposals under the new plan

  • lenders would grant three months forbearance to homeowners who are out of work
  • require mortgage servicers to consider cutting a loan's principal if it is up to 15% more than the home is worth
  • principal would be reduced over three years as long as the borrower stays current on payments.
  • Servicers will get more incentives — double the amount the government now pays to lenders — if they reduce the unpaid balance of second loans
The current program provides modified mortgages to homeowners who show proof of income. The current tight labor market is seen as the driver for the current wave of foreclosures while the earlier wave was the result of the sub-prime crises. For more information visit the USAtoday website.

PrivoCorp has been processing conventional and FHA mortgage loans right through the sub-prime crises and now through the lean job growth market.

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