Mortgage Servicing and Loan Modifications: 6.1.1 The Changing Climate for Workouts
The dynamic for negotiating preforeclosure workout agreements for low-income and moderate-income homeowners continues to evolve. Workout agreements became popular when the 2008 foreclosure crisis escalated and the lending industry liberalized its approach to homeowner defaults, and federal, state, and local governments sought programs to respond to the growing number of foreclosures.