will lenders re-work loans just because house value dropped?

[sniglet]

With all these new mortgage bail-out efforts being announced I am wondering if any of these initiatives will help borrowers who's homes are under-water but are otherwise in sound financial shape and capable of continuing to pay?

Are the lenders finally starting to come up with incentives to encourage borrowers not to walk away? Something like reducing the loan principal to lower than current market value (leaving some equity cushion) would be enough to disuade most borrowers from bailing.

Is this what Countrywide and the group of six ("Project Lifeline") are offering?

[Rhonda P]

When I watched Paulson this morning, my take is that lenders are so backlogged with potential foreclosures, they're giving themselves 30 more days to process the mortgage and hopefully, the home owner can somehow make it. It's only giving 30 more days to those who are all ready 90 days delinquent on their mortgage.

I think this is just spin from the banks to make it look like they're helping home owners. What will 30 days do for someone who is all ready 90 late? Maybe they can borrow money from friends and family?

I hate to sound negative... home owners should contact their lender at the first sign of slipping on their mortgage to make arrangements. Please don't wait until your 3 months late.

Lenders do not want to own homes.

[sniglet]

[rose-colored-coolaid]