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Program eligibility will be determined by several factors:

1. Homeowners must be 90 days late or more with their mortgage payments.
2. Owe at least 90% of their home’s value.
3. Live in the home on which the mortgage was taken.
4. Have not filed for bankruptcy.

Mortgage payments would be adjusted through lower interest rates or longer repayment schedules with the goal to bring payments below 38% of monthly household income.

Also, interest rates could be lowered for 5 years, then raised to a predetermined level.  In addition, 40 year loan terms could become available.

Good first steps, though more may be needed.

Related posts:

1. Getting The Best Mortgage Rate
2. How Much Longer Can Interest Rates Remain Low?
3. In Post-Meltdown Muddle, Lenders Tighten Standards
4. Mortgage Payments Sending You Reeling?
5. Condo Woes…