If homeowners owe more than their house is worth, will the Making Home Affordable program reduce what they owe?
The primary objective of the Making Home Affordable program is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.
