Loan Modification

What Is Happening With Mortgage Modifications?

By Kurt O'Keefe, Detroit Consumer Attorney

The short answer to my question:  What Is Happening With Mortgage Modifications?

NOT ENOUGH!

Again and again, I keep saying, judicial mortgage modification, which was up in the House again last week, and lost, is the best solution the government can provide
How are the government encouraged mortgage modifications going?  Are mortgage modifications working?  What effect is the HAMP program having on foreclosures?

As I hear all the time, only one third of homeowners trying to get HAMP relief have sent back the paperwork to get a mortgage modification.

Paperwork problems.

And the mortgage companies blame, who else?  Their customers!

Of course, what my clients tell me is, what documents they are requested to send keeps changing.

Banks who threw mortgage money out the window to anyone who could fog a mirror now claim people cannot get the right mortgage modification forms back to them in time.

“Our customers are just not contacting us, not following through, not sending the information we need to review so we can help them.”

Yeah, right.

On top of that, even though very few get a mortgage modification, many of them are already behind again.

HAMP program not performing as we were told it would when announced, with the usual fanfare.

As the government “solution” founders, the foreclosure problem gets worse.

More foreclosures coming.

Which means, more pressure on home prices, which will continue to go down, which means more homes worth less than what is owed on them, which means more foreclosures  . . . .

Related posts:

1. What’s happening in Illinois Mortgage Foreclosures?
2. Wait for Modification or File Chapter 13?
3. Lies, Damned Lies and Statistics on Mortgage Modifications

Full post as published by Mortgage Law Network on December 14, 2009 (boomark / email).