Reuters: Treasury Contemplates Incentives For Second Lienholders

Posted by Orb Staff on April 22, 2009 No Comments
Categories : Mortgage Servicing

ncentive money for servicers and investors may find its way into the government's foreclosure prevention plans, [u][link=http://uk.reuters.com/article/americasRegulatoryNes/idUKN2157568420090421?pageNumber=1&virtualBrandChannel=0]Reuters[/link][/u] reports. The aim of the incentives would be to both untangle troubled mortgages from second liens that prevent loan modifications and encourage short sales. The Reuters article cites an anonymous official with the Treasury Department, who said that details are expected to be released soon. The funds would be used to soften the blow for second lienholders who agree to extinguish notes, clearing the way for modifications. Such an approach seeks to reduce borrowers' debt overhang. SOURCE:

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