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.
In particular, delinquent borrowers who refuse to engage realistically with the lenders to reach and comply with an affordable modified payment plan can expect those consequences. Quite clearly this is not a question of mean-spirited lenders. The capital injected by the Government into the banks is to cover loan losses that cannot be avoided.