I wouldn’t worry too much about this, at best its only going to save those that are only marginally over-leveraged
It won’t do that. The one example they had in the article involved the couple getting a better job, making the past due payment including penalties and then refiancing into a loan that had 8% higher payments than the one they got in trouble with which had 25% higher payments than their original loan because they’d refi’d money.
Will the banks refi you from $1200 to $1500 and then $1600 after you had a couple month problem, paid all the payments and penalties? hell yes! If this is what the “mod squad” does, wait a month or two to see if the owners can suck it up, they aren’t going to make a dent.
