Before the lynch mob gets any further out of hand, all the mods I have seen and heard about are for primary residences not rental properties.
The mod example I provided was for my friends 10+ yr primary residence not a rental property. I said he could rent it out not that he would. Its his home and he will stay there though he has and may take in a roomate. The modification is allowing him a couple years to get back on his feet and he is well on his way. In the end after a few years of interest rate subsidy he will eventually have to pay back the entire principal of the loan. It was a good deal for all as they do a NPV calculation to make sure of that. If it wasnt the lender wouldnt have done it.
HAMP modifications are for 5 years at a low start rate increasing 1% per year until reaching the current market today they are qualifying under.
