The government mandated loan modification programs aren’t working. They are just figuring this out, though Joe American has known this for a long time. The banks aren’t doing the loan modifications, they are only selectively doing them, they are taking too long to process paperwork or losing it altogether, or foreclosing on home DURING the modification period and many more reasons.
The point is, the program is not helping those that the Obama Administration intended it to.
I heard recently of a loan modification that wasn’t. The bank re-aged the loan to bring it current and bumped the borrower’s interest rate up 1.25% and called it a “loan modification”. If the borrower was having problems making the payment as it was (in this case because of financial hardship) what makes the bank think they can afford the payment at an interest rate 1.25% higher?
But hey, all they have to tell the Treasury department is “We helped a homeowner”. They don’t have to say how.
Then this article is in this morning’s news. Well, it’s about time someone in Washington figured it out, but it should have happened a long time ago.