A new modification bill (Preserving Homes and Communities Act of 2009) was introduced in the U.S. Senate to expand loan-modification programs and place new restrictions on lenders before they can initiate foreclosure proceedings.

The bill would require all lenders and servicers to evaluate homeowners for affordable modifications before starting foreclosure. It also requires that servicers and lenders offer the mod to the borrower, as long as the NPV of the mod is higher than a foreclosure.

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