News on the mortgage help will entice servicers to modify loans more aggressively. This is due to the incentives outlined to help promote loan modification. This is from the CNN Money news, and it says it's up to the servicers and lenders to step up and take the (bait..hehe), the Incentives. First, homeowners who have kept their loans current are asked to take advantage of low rates to refinance. Home owners who have little or no more equity on their homes are eligible as long as they remain current.

Next, at risk borrowers get monthly payments reduced to just 31% of their total income. Borrowers will get $1000 principal reduction (or discount on the principal) per year for five years IF they stay current. The servicers and lenders who will modify will also get $1000 incentive for each modification plus more if the borrower stays current. For loan modification servicers, you may visit the CallComLeads for quality prospects.

Moreover, if the home prices decline, the government will pay the mortgage holders for the loss that they will incur through an insurance that was also set up for them.

The not so great thing about the 'stimulus' is that not everybody will benefit through loan modification. The following are ineligible: homeowners whose property values declined by more than 5%, homeowners who have JUMBO mortgages (loans above $417,000 are jumbo and those that are not serviced by Fannie Mae and Freddie Mac), speculators who bought houses for investment purposes, and those who misrepresented their income and bought houses that they obviously cannot afford.