Paul Goodman of the N. Y. Times reports that the government says its mortgage modification program is working!
Knock me over with a feather.
Of course, the government mortgage modification plan, is where they pay the mortgage servicers to enter into trial modification periods, three months long.
If all those payments are made on time, they might extend the agreement.
So, most of the claimed half-million modifications are still in that three month trial period.
And put together by the same people that created the bad mortgages to begin with.
I know my clients usually over estimate the amount of money they have available every month to pay the mortgage. They want to keep their house!
And the government cannot tell how many of these “modifications” actually reduced the principal balance.
Only 1.9% of the ones done in 2008 did that.
So, at this point, these are mostly in the trial stage, and are just re-worked ways, by the mortgage company, for the mortgage company, for them to get back the entire amount owed on the loan.
Call me a skeptic.
Judicial mortgage modification is the only effective proposal out there.
Government Claims Its Mortgage Modification Program Is Working
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I wish they would do more.