There will be different variants of these, which can be calibrated in different ways, which will have different degrees of capital cost to the banks (and for the covered banks, to the taxpayer). For the borderline insolvent homeowner, loan modification will have consequences, perhaps such as partial loss of ownership or remaining liability for the warehoused component.
Certainly there will have to be a commitment to stick to a very tight budget and to make significant adjustments to living standards. And it is important to be clear that there is no legal obligation on banks to modify loans in all cases and in some cases repossession or voluntary surrender will take place.