[cobra de capell]

[quote=427 S/O;926553]Looks like $1000 yr. is all the help foreclosures will get?. I don't see that helping anyone.


No, it's not.

Section of overview...

Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI).

The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are acceptable alternatives.
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Meaning that their payment can be reduced by reducing the interest rate and/or reducing the principal (forbearing [give up] principal) and/or entend the loan to 40 years.

Therefore, FANNIE and FREDDIE will be writing off principal, reducing interest and extending loans to 40 years in the billions to reduce payments to 31% of income. Loan payments in the target category are more than likely in the 45-55% of income.

Now, when someone secured this sort of break, but their neighbor does not simply because they are managing in a financially responsible manner - what will the neighbor do if, for example, the 'break' involves a principal reduction of $100,000? It's a road that America should have never gone down.

We are so screwed.