The followings are possibilities of a successful loan workout:

• A permanent change in the interest rate
• Capitalization of delinquent principal, interest, or escrow items
• Legal fees and related foreclosure costs for work actually completed and applicable to the current default episode may be capitalized into the modified principal balance
• Possible extension of loan term
• The use of any four of the above items will result in the re-amortization of the loan
• Mortgagees may use the Treasury 10-year constant Maturity Rate plus 200 basis  points OR the Debenture Interest Rate plus 150 basis points in determining the “new” note interest rate. Although at mortgagee’s discretion, note interest rates may be reduced below market
• All or a portion of the PITI arrearage (Principal, Interest, and Escrow Items) may be capitalized to the mortgage balance
• When establishing a loan modification, it is acceptable for mortgagees to include all payments due including an additional month
• Late fees associated with the current default episode should be waived
• No administrative fees for completing the Loan Modification documents can be passed on to the mortgagor
• The modified principal balance may exceed the principal balance at origination
• The modified principal balance may exceed 100% loan-to-value
• Mortgagees may re-amortize the total unpaid amount due over the remaining term of the mortgage, or may extend the term not more than 10 years beyond the original maturity date or 360 months from the due date of the first installment required under the modified mortgage, whichever is less
• All Loan Modifications must result in a fixed rate loan
• The Loan Modification must fully reinstate the loan
• Subsequent defaults are to be treated as a new default