It goes without saying that the federal government's loan modification plan is going to make mortgage payments more affordable. The lender will be responsible for modifying the rates, changing the loan balance or forgiving previous missed payments. In general, the lending institution will discuss the terms of the arrangement with the borrower, making sure that everyone wins from the new situation.
Government officials hope that the program will be used by those who are not delinquent but are having a hard time meeting monthly payments, thus reducing the number of at-risk foreclosures.
