Mortgage modification programs thus far not making a dent in foreclosures.
The foreclosure crisis continues, though it may not be getting worse, foreclosure numbers are not getting better.
Supposedly, 300,000 people have received permanent mortgage modifications.
Allegedly, a similar number failed the mortgage modification trial period.
The Huffington post cites April 2010 figures showing twice as many people bounced out of the mortgage modification program as were offered five year modifications.
April gave us an 82% increase in the number of canceled mortgage modifications.
Well, all I hear is how the paperwork keeps getting lost, they keep asking for the same stuff over and over, they ask for something that they need in a week, when they get it, they say it is too old to use.
And this is if you have the luck to get a conversation going with someone about your mortgage modification.
April was the fourth straight month of declines in mortgage modification applications.
Here is a stunning tidbit, the Treasury Department told the servicers to go back to the no doc standards for mortgage modifications.
While most don’t want to go on the record with me, lest they rile the regulators, Bank of America’s Rick Simon says initially, “All the major banks, at Treasury’s suggestion, went to non-verified income for verification.”
(from Diana Olick at CNBC)
No wonder so many fail!
Only the government would think you can stop foreclosures by using the same non-standards to qualify for a mortgage that helped get us into this foreclosure crisis.
The debt to income ratios they are allowing in mortgage modifications are worse than what the mortgage companies did during the real estate bubble, when anyone who could fog a mirror qualified for a loan.
Refinancing is history for those trying to avoid foreclosure.
They cannot get a lower interest rate that would lower their payment, because they owe too much more than the house is worth.
Their equity disappeared, partly due to all the foreclosures!
More foreclosures, and short sales to avoid foreclosures, more supply of houses for sale, more supply lowers the price.
I talked to someone else today, home worth $60,000 to $90,000, owes $130,000 on the first mortgage, and another $14,000 on a home equity loan.
Guess what?
Having trouble getting anyone at the mortgage company to talk to her about mortgage modification.
She is not facing foreclosure, as she can afford the payments, but, is considering strategic default, like a lot of her friends have done.
The country is in the very best of hands.
Foreclosure Crisis Still Here
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