Real Long-Term Mortgage Loan Modifications Are a Joke.

As I’ve been saying the mortgage loan modification process is broken. People are not getting the type of long-term real mortgage modifications they need to really avoid foreclosure. In the meantime while they sit and sit and sit, waiting for their mortgage company to respond, their financial life goes further and further down the toilet.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

But 30,650 people in trial modifications have been denied, according to Treasury officials.

A total of 759,058 trial modifications have been started since the program launched in the spring. The number of troubled borrowers currently in trial modifications rose to 697,026, up from 650,994 a month earlier.

“We’re not satisfied yet with how this program is unfolding,” said Treasury Assistant Secretary for Financial Stability Herbert Allison at the House Financial Services hearing. “The servicers have a lot of work to do, and we’re holding them accountable for their performance.”

Thursday’s announcement came hours after a report showed the foreclosure crisis might be mitigating somewhat. Foreclosure filings fell by 8% in November, the fourth consecutive month of declines, according to RealtyTrac, an online marketer of foreclosed properties. – Source


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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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2 thoughts on “Real Long-Term Mortgage Loan Modifications Are a Joke.”

  1. Let me help this Loan Modification deal – Does this assistance assurance exist or does it not? This article addresses what has worked to some to degree and that which has not worked to any degree reflected in the numbers of declined modifications. The government has designed criteria that define eligibility for loan modification and I personally have met ALL criteria, my LM process began in October of 2008 and then I switched to a Loan Mod company as we are warned against doing with absolutely no forward motion on my GMAC account to this day Decemebr 31 2009! I began with The Lamb Group officially on 18 February 2009 and here I am at square zero! Nothing but the loss of time and worsening of the loan position! I will be tossed out of my home in January. Oddly enough, my efforts were proactive to prevent all this. So I do not beleive that any assurances help as Lenders do not seem inclined to honor the Loan Modification process – it is all “commercial Puffery” and perhaps it is also governmental puffery. I demand some assistance from all these experts out there who cannot seem to abate the crisis that many home loan owers are about to face! Who can qualify for a loan now?! I wish to REFI NOT Modifyy my Loan. LM does not work!
    Thank you


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