So it indeed looks as if the Banks actually wrote the new Obama Home Affordable plan that is touted to help millions of distressed Homeowners.
To wit:
A borrower is not guaranteed nor entitled to principle reduction in any loan modification outside the Home Affordable plan or under the plan:
http://www.ustreas.gov/press/releases/reports/modification_program_guidelines.pdf
Page 7 -
Step 6: If the Front-End DTI Target has not been reached, forbear principal. If there is a principal forbearance amount, a balloon payment of that forbearance amount is due on the maturity date, upon sale of the property, or upon payoff of the interest bearing balance.
As Archie Bunker from the old sitcom “All In The Family” said:
“It don’t hurt to be generous, specially when it don’t cost you nuthin.”
