Thursday, January 8, 2009

Federal Government Taking Steps on Mortgage Modification

Obama's stimulus package will likely allow "bankruptcy judges alter home loans in an effort to prevent foreclosures and urged other lenders to follow suit." (read more here)

This will likely encourage banks to follow the Streamlined Modification Program before a mortgage gets on a judge's desk. But I don't know the details or how judges would modify -- could there be some way this move reduces the now massive implicit tax from mortgage modification?

No comments: