Federal Reserve will soon come out with an action plan to reduce the phenomenon of foreclosures in the US. A letter to this effect has been sent to the Congress on Tuesday.
The proposed program aims at giving greater leverage to the borrowers for paying back the mortgage amount they owe to their mortgage provider. The steps under the program may include a reduction in the amount of mortgage, decrease in interest rate or increase in the term of loan repayment.
However, the program will be applicable to only those mortgages which are owned by the Federal Reserve.