Mandatory loan modifications and a fund to help reduce the principal on underwater loans are part of the price the nation's state attorneys general are seeking from mortgage servicers for settling the robo-signing controversy.
Only 5 percent of underwater homeowners are likely to qualify for mortgage principal reductions under the recent $25 billion foreclosure abuses settlement, an economist with the Brookings Institution has calculated.
The recent $26 billion foreclosure abuses settlement has been getting a lot of attention, but time is running out to obtain relief under another action that could potentially help even more former homeowners.
A settlement that could produce up to $25 billion in mortgage relief for homeowners is in doubt after it was rejected by the California attorney general, who said the proposed deal doesn't go far enough.
A program to help homeowners save $3,000 a year by clearing away obstacles to refinancing was proposed by President Obama in last night's State of the Union address.What isn't clear is how that plan might work.
Fewer homeowners are being approved for the government's mortgage loan modification program these days, but those who are are doing much better than those who entered the program during its early phase.