Use of mortgage loan modifications sp...

Use of mortgage loan modifications spotty, report says

There are 9 comments on the Chicago Tribune story from Aug 4, 2009, titled Use of mortgage loan modifications spotty, report says. In it, Chicago Tribune reports that:

Loan servicers covering 85 percent of U.S. mortgages have signed up to offer the government's modification program but their use of it has been spotty and many of the largest servicers are falling short in the efforts to remedy the mortgage crisis.

Join the discussion below, or Read more at Chicago Tribune.

Albigensian

Morristown, NJ

#1 Aug 4, 2009
"$75 billion Making Home Affordable loan modification program "

What a waste. People who are not paying their mortgages areen't going to pay them after loan "modification," either. Which means, when the $75 billion is gone, the taxpayer will have to re-up to modify the modified loans which the deadbeats are still not paying.

Furthermore, the long-term effect on housing affordability will be negative, as no one will lend without demanding a huge risk premium to cover the possibility that at some future time government will insist that the terms be modified.

It's a short-term fix that doesn't fix much, yet which will have huge long-term costs.
Home Buddy

Chicago, IL

#2 Aug 4, 2009
I'd be happy to have my mortgage modified. I won't even skip or miss payments. Just reduce my rate and I'll keep plugging away!
RAK

Chicago, IL

#3 Aug 4, 2009
Exactly home buddy, but B of A has absolutely no interest in helping you or me. Instead of helping people that would actually repay their loans, they would rather throw money at idiots that "bought" houses with no money down and adjustable rates that they will never be able to afford. Makes perfect sense.
jaxon

Wilmette, IL

#4 Aug 4, 2009
Home and Rak,

Absolutely! I have a relative with a Countrywide/B of A mortgage at over 7%-- they would just like to do a refi since their consulting work is drying up, but they have been refused, never missed a mortgage payment.
KeepTheChange

Northbrook, IL

#5 Aug 4, 2009
Rahm should have received his 5 page document from the ONE HUNDRED ELEVENTH CONGRESS
House of Representatives
COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM, dated today. He has been asked to knock off the Chicago thuggery. The Drudge Report has the official documents posted right now. Woo Hoo!

.
Griff

Rock Island, IL

#6 Aug 4, 2009
Got 3 words for ya. NEVER....GONNA....HAPPEN! The FED has just made it easier for the Monster Mortgage banks to foreclose with impunity. They can short sell EVERYBODY'S home because they don't have to absorb any loss thanks to TARP.

If they restructure loans and reduce interest rates, that's gonna come right outta their pockets. But if they just foreclose and short sell the properties, then they get their losses covered. And that's just so typical of our lying, conniving, insider, elitist, sellout government. Blow a big trumpet and proclaim that they're gonna save the common man, when in reality all they're doing is handing more of our taxes to the obscenely rich and greedy.

Know why this mortgage plan had no chance? Because they gave the money to the wrong people. And you can see where it has led. These "Financial Institutions" (Wow what a loose definition they must be using calling these swindlers by THAT fancy name) are getting ready to hand out their SECOND round of obscenely offensive bonuses to themselves. Using taxpayer money AGAIN incidentally. If there is ANY up side to this I really don't know what it is, unless if you're a wealthy real estate speculator. You'll be able to buy up a bunch of really nice homes and properties for about 40 cents on the dollar, but that's just more wealthy people getting wealthier off the suffering of honest working people.

I actually had the Audacity to HOPE that having a President in office that came from a background of modest means would make a difference. But even at his most conscientious he is after all, just one member of a nearly 600 member government, the majority of which are self serving, corporate sellout, lying, cheating, Bluedog, Doo-Dah betrayers of the public trust. And in truth, we the people have no voice in our own government anymore. It's an Oligarchy, and the rule of law is restricted to laws that have been passed to favor the Oligarchs.

So let's just drop the pretense. Let's just call this scam what it really is "Hopelessly For(nicated) Homeowners". Because at least that way, these poor people can face reality and start planning for when they're made homeless, instead of blindly clinging to a hope that never actually existed in the first place. And I know, I've had some experience with this "Mortgage Modification"! BOA took 3 payments we were behind, added them onto the back of the loan as additional principle (with about $4000 of extra fees), and actually RAISED our payment.

Yeah. That's how the big boys play. Real bunch of F****** Philanthropists. "Hopelessly For(nicated) Homeowners", that's us. Now THAT'S what I'd call truth in lending.
Waiting since April

Palatine, IL

#7 Aug 4, 2009
We applied for modification through our mortgage lender, National City, in April (my husband has been unemployed since last November and has been job-hunting ever since). In June they contacted us asking for some more information, which we quickly supplied. A couple weeks ago, they told us that the investors who are in charge of our mortgage have yet to buy-in to the loan modification plan, so we can't modify our loan. Gee, couldn't they have told us that in APRIL when we initially inquired about the program?!?!?!

National City did say that we still could get approved for loan modification, but that they didn't know when. You'd think that it would be in their best interest to help out loyal customers instead of them likely getting stuck with yet another foreclosed home that they won't be able to sell.
RAK

Chicago, IL

#8 Aug 4, 2009
At least you got a response. I applied around the same time (Although the program was not completely in place) and B of A said do not call to check on the status because they have no way of checking!? I never would have imagined that Countrywide would end up being the bank with better service.
RSh

Chicago, IL

#9 Aug 4, 2009
Like it was said, the government gave 75 billion to the banks, and mortgage Co, and that was the end of it. They got the money and covered all losses, and they do not give a damn what happens to the home owners.
This article says the number of loan modifications done or are in process, but does not say about the quality of modifications. I hear on average people have got around $50 or so break only.
This program was actually for the money lending institutions and not for home owners.

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