Modification of Lease Liabilities
Lease modification is a change in the scope of a lease, that was not part of the original terms and conditions of the lease.
“It's only after we've lost everything that we're free to do anything.” Chuck Palahniuk, Fight Club
During the Great Recession and the housing crisis in 2008 at least 10 million American households lost their homes to foreclosures.
(a foreclosure is the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments).
In 2009, Obama's legislation launched the Making Home Affordable Program (MHA) to help struggling homeowners.
MHA has helped avoiding foreclosure by providing a variety of solutions to:
modify or refinance their mortgages,
get temporary forbearance if homeowners are unemployed, or
transition out of homeownership via a short sale.
The cornerstone of MHA was the opportunity to reduce monthly mortgage payments to more affordable levels**.
Modifications of terms of debt are not just a dry theory.
They are reactions to economic reality for both people and businesses.
*Investopedia.com
**US Treasury Website
