The Federal Government Announces New Home Loan Modification Program
According to an article in USA Today (March 28, 2013), the federal government has announced a new home loan modification program to help more struggling homeowners. The improvements in the program include requiring no documentation of income or financial hardship. On average, the expectation is that monthly payments will be reduced by 30% in order to be eligible for the new program, a homeowner must be between three months and 24 months delinquent on their loan. Also, the amount they owe on their mortgage must be at least 80% of their home value. The article indicates that throughout America, one in five homeowners owe more than their home is worth.