The latest help effort for distressed home owners set to roll out December 1st is aimed at borrowers with subprime mortgages or option ARM which allow homeowners several pay options each month. The premise is to modify a loan's terms to create a new monthly payment. The new monthly payment would include principal, interest, taxes and property insurance and equal 34% of a borrower's verified income. Countrywide and its subprime unit promised to consider modifying any type of loan for borrowers who cannot afford their payments, however, this bailout effort is predominantly for subprime loans and option ARMs. Other provisions include: -Waiving pre-payment penalties and late fees on distressed mortgages -Freezing the foreclosure process for borrowers until their loans were modified or until it is proven that they do not qualify -Lender will pay an average of $2,000 to borrowers who have lost their homes or will lose them because they don’t qualify for the program The modification plan is only available for owner occupied homes. By December 1st, Bank of America employees are scheduled to start contacting and offering loan modifications to borrowers who are 60 days or more delinquent. Borrowers who will face higher payments that they are unlikely to be able to afford will also be contacted.