Not so sure I agree with the 6% rate. I think it should be the going rate in the market. Give the homeowner the option of interest only payments if they can’t afford the current rate. With no penalties and principal payments when can afford it at anytime they want.

Although 1a. would make homeowners current, many of them will be upside down on there balance as home value has dropped so much. I’m not sure how many are willing to keep there house with a negative loan to value ratio. Currently you can work with your lender and short sale the property. Then you can find and buy another house for a much cheaper price thus having a lower balance and paymrnt. It all depends how attached to your house you are, like size, location, community and taxes.

I see 1b. says the same thing.

Basically he has a good start but left out important things like amortization options and home value.