Qualifications are quite simple:

1.) The Home must be owner occupied, primary residence. This must be documented by credit report.

2.) There must be a documented HARDSHIP.

3.) The existing loan cannot exceed $729,750.

4.) The Bank will be offered incentives for several factors: after the loan has remained current for three months, the lender will receive $1,000. Additionally, the lender will receive $1,000 for each year that the borrower remains current for up to three years.

5.) The Homeowner can receive a $1,000 cash amount to be used toward the reduction in Principle amount for up to five years if he remains current on his mortgage.

6.) The target amount for the lender to aim for in reducing the payment amount is 31% of Gross income for Housing. (PITI). This is to be accomplished by first, reducing the interest rate to as low as 2%. If this does not accomplish the desired ratio, the lien holder is to extend the term up to 40 years. If the objective is still not achieved, the lienholder is to Forbear enough principle amount at 0% interest to accomplish the desired threshold.

7.) The Bankruptcy judges have been given the ability to order the lienholders to reduce the principle balance to make the budget of the individual conform. The Government will subsidize these shortfalls to the lenders making it "profitable" for the servicing lenders to complete these modifications. There is a formulation for the lenders to use called "Net Present Value" which will help the lender determine the most cost effective way to deal with a property in default. it is expected that the Loan Modification will be the answer for the most part.