Today Huffington Post wrote an article titled HAMP: Mortgage Modifications Slow To Trickle Under Obama Anti-Foreclosure Program
to which anybody on the ground who has been watching people lose their homes would say "well DUH!"
Fewer homeowners entered preliminary mortgage modifications under the Obama administration's signature foreclosure prevention initiative in June than in any month since April 2009, according to government data released Friday.
June saw just 15,000 new trial modifications under the initiative, which the administration confirmed was the smallest number of any month almost since the program launched. (The administration said some June modifications may not have been reported yet. More than 30,000 trial modifications were converted to permanent ones in June.)
Good grief, man. I've been blogging about this for a while along with many other fine bloggers. ANY home saving efforts that assume banks would rather work out a solution to keep people paying their mortgages rather than just boot somebody out of a home will fail.
Banks would rather foreclose on a home. Nearly anybody who has attempted to modify their mortgage through a Federal program will testify that the banks deliberately make it into a quagmire. My parents tried to modify their mortgage through a Federal program and the bank dragged its feet the whole way. They even sold my parents' mortgage processing on the third and final month of the trial period, forcing my parents to start the process from the beginning.
This administration needs to drop the assumption that banks would prefer that people pay at least something on their mortgage rather than kicking them out.
Banks would rather kick them out.
Maybe it has something to do with the rampant mortgage fraud. Maybe banks would rather drop the mortgage completely than reveal the web of fraud that currently holds up America's home loan industry when in fact few entities have clear, legally verifiable ownership of titles and mortgages.
As more and more Americans face mortgage foreclosure, banks' crucial ownership documents for the properties are often unclear and are sometimes even bogus, a condition that's causing lawsuits and hampering an already weak housing market. Scott Pelley reports.
Read more: http://www.cbsnews.com/video/watch/?id=7375936n#ixzz1UYRKWDd8
The bottom line is, NO PROGRAM that assumes banks would rather lower mortgage payments than boot people from their homes is going to succeed. It's going to fail