Question, what happens if they can't pay this new loan?
Troubled borrowers will be able to apply for the Emergency Homeowners Loan Program by the end of the year. They must be at least three months behind in their payments, but have a reasonable likelihood of being able to resume payments within two years. And they must have suffered at least a 15% drop in income, but have been able to afford their mortgage before their income loss.
Read it allAlso, the property must be their principle residence and they cannot own a second home. And they must live in Puerto Rico or one of the 32 states not receiving federal assistance through the Hardest Hit Fund, which gave 17 states $4.1 billion to come up with programs to help the unemployed and underwater.