Mortgage Rescue Plan Rolls Out

Americans caught up in the foreclosure crisis can now apply for relief from the Obama Administration's new "loan modification plan."
March 4, 2009, 12pm PST | Michael Dudley
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"The Obama administration's foreclosure prevention program is open for business.

The multipronged fix calls for companies to help as many 4 million struggling borrowers by modifying loans so monthly payments are no more than 31% of monthly gross income. Separately, homeowners who haven't missed a payment can refinance into lower-cost loans even if they have little or no equity. This is expected to help up to 5 million homeowners.

The $75 billion loan modification plan will provide incentives to borrowers and loan servicers and investors to spur mortgage modifications. The government will also subsidize interest rate reductions to get borrowers to affordable monthly payments."

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Published on Wednesday, March 4, 2009 in CNN Money
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