Another plan - This time from the FDIC

The FDIC covers some of the losses incurred by failed banks, so to help homeowners avoid foreclosure, they are encouraging banks to reduce mortgage payments for the unemployed struggling to pay their notes. This is basically a 3-6 month forbearance, with the balance payable over the life of the loan. The FDIC will cover the difference for the lenders, if any lenders agree to cooperate. http://money.cnn.com/2009/09/11/news/economy/forbearance_unemployment/index.htm?postversion=2009091118

The government and it's related agencies can implement 100 programs to help Americans, but if they can't deliver on these programs effectively, it's nothing but hyperbole. Let's keep these plans simple and effective. These programs need to be easy to understand for everyone, loss mitigators and homeowners alike, so that we can get loan mod approvals up from 12%. Yesterday, I met with an attorney who had no idea about a new law here in Oregon: HB 3004. Simply, if the 1st and 2nd purchase money mortgages on a home are with the same lender, the 2nd can no longer seek a deficiency judgment against the homeowner if they fail to perform. In this case, the client had US Bank holding both mortgages, and he literally skipped out of the restaurant with a big smile on his face.