Up to 390,000 homeowners are anticipating eligibility for a restructured loan modification under the terms of the settlement. The mortgage restructuring will likely be applied to approximately 120,000 California homeowners according to Bank of America. The B of A loss and mitigation department will begin sending modification offers to borrowers by the end of November.

For most of 2008, Congress, Senate and many Washington officials have been pressing the mortgage executives to modify mortgage loans to help homeowners avoid foreclosures. Now, the extraordinary government intervention in Fannie Mae, Freddie Mac and a growing number of banks puts federal agencies in the unfavorable position of deciding which homeowners will receive aid and which homeowners will lose their precious property.

And while the Bush administration is leaving it to the next president to decide how the mortgage finance companies will operate further out, the actions taken by their conservators now will have an immediate influence on the cost to taxpayers - and to the economy - of stabilizing the nation's fragile housing market. Regulators are walking a fine line between protecting the government from losses and helping struggling homeowners and the broader economy, according to financial and political analysts. If officials modify too many home loans or the companies suffer high defaults on modified loans, taxpayers will be stuck with an inflated bill.

Refinance Versus Loan Modification.
Modifying loan payments are one the methods Nationwide recommends to quickly lower your mortgage monthly. Millions of consumers are waiting to get their mortgage restructured and banks are clearly doing their best to accommodate homeowners with payment vacations and reduced mortgage rates.