“In addition to subsidizing the interest rates, servicers will use the Treasury funding to pay for incentives for themselves, homeowners and investors. The program gives servicers $1,000 for each modification and another $1,000 a year for three years if the borrower stays current. It will also give $500 to servicers and $1,500 to mortgage holders if they modify at-risk loans before the borrower falls behind.
Homeowners, meanwhile, will get up to $1,000 a year for five years if they keep up with payments. The funds will be used to reduce their loan principals.”
It’s hard to say what will work and will not. At this point and we speculate all we want. The fact is, I believe no-one really knows how big this problem is.
We need to take action now and help out where we can. The Administration is doing their part and we need to do ours.
There will be a free webinar tonight April 16th at 6pm PST 9pm EST on how to help people stay in their homes through Loan modifications. Topics covered at the website.
You can go-to http://www.investorsclassifieds.com/loan-modification