Loan modification and Foreclosure site

As we all know, President Obama has attempted to bring sweeping reform to the economy and the financial sector in general. With foreclosures nearly doubling each year, Obama has made sure to attempt to make loan modification reform, which is a pretty smart move.

Here are a few changes that have either been passed or proposed by Obama relating to loan modifications:

• There have been efforts to reduce the maximum monthly mortgage payment under a loan modification to no more than 31% of the homeowners gross monthly income. I thinkt that is certainly reasonable.
• Obama has also tried to do away with “second liens” of credit, such as modification to auto loans or a personal loan.
• There have also been government sponsored cash incentives towards loan servicers in order to encourage modifications of loans of people in a rut.

Whether this will help to solve the problem of forclosure or not is yet to be seen, but it is nice to see that there has been a lot of attention directed towards loan modifications as a viable option to foreclosure.