Section 110 – Assistance to Homeowners encourages homeowners to take advantage of the Hope Alliance’s “Hope Now” program. It would appear that great political pressure will be brought to bear on those lenders to now modify the terms of mortgages “underwater” or in serious trouble.

Specifically, this section states:

(2) MODIFICATIONS.—In the case of a residential mortgage loan, modifications made under paragraph (1) may include—

(A) reduction in interest rates;

(B) reduction of loan principal; and

(C) other similar modifications.

As many have said, the “devil’s in the details” and it will be interesting to see how this plays out over the next few months, especially with the election looming early November.