Rescue Includes Steps to Help Borrowers Keep Homes

Wall Street Journal (09/29/08) P. A8; Simon, Ruth
The financial bailout bill will force the government to be more aggressive in helping homeowners avoid foreclosure by lowering monthly payments and taking steps to reduce interest rates. However, it remains to be seen how many borrowers will benefit and whether the government will be successful in modifying loans, with experts noting that it would have to purchase entire mortgages to exercise full control of loan terms. Meanwhile, there are concerns that borrowers making timely payments will stop doing so in order to secure a modification. Experts say assisting troubled borrowers would cushion the blow of the credit crisis on the housing market and local economies.