Just like the "Making Homes Affordable" program, this one is all hype and likely to produce minimal results.
The bottom line is that there are simply too many people who should never have been given a mortgage in the first place. Those who can't afford the home now likely won't be able to afford it in a year...and no bank is going to accept a write-down of X unless the feds stand ready to give cash incentives and tax breaks that equal or exceed X.
BTW, 40% of those who renegotiate their mortgages to longer terns and better rates are back in default within six months. People need to stop running their finances like Washington.
"You mean we have to pay that money back?!?!?"
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