SEC. 109. FORECLOSURE MITIGATION EFFORTS. (c) CONSENT TO REASONABLE LOAN MODIFICATION REQUESTS.— Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.
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So... the money for McCain’s plan is already provided for as part of the $700 billion?
Golly, wouldn’t it be funny if McCain came out tomorrow and basically said “I was just throwing that out there to see if Senator Obama has been paying attention.”
What’s in the bill is really all at the Secretary’s discretion. What McCain promised tonight was free money for anyone with an overmortgaged house or a mortgage payment they’d like trimmed down.
I think McCain’s plan includes those things but I believe there is more to it. I think his plan allows a percentage (up to 50%?) of the proceeds upon sale go back to government. Plus, only credit and income qualifying current owners would be able to do the deal. I’m not 100% certain on this. This is what has been told to me. Let me see if I can find it in writing somewhere. It could all be BS.