Loan Mods Are Still A Disaster

foreclosure homeowner sad

How badly are the government’s loan modifications doing? 

Here’s the money shot from NYT reporter Floyd Norris’s investigation earlier this week:

Chase disclosed in November that:

  • nearly a quarter of trial modifications had failed because the borrower did not make even a single payment
  • nearly half had failed to make all three payments required before the modification could become permanent.
  • Of those who had made all three payments, only about a quarter had submitted all the required documents.

Add all that up and approximately 25% 12.5% of applicants are making it through the loan-mod trial period.

So what’s the real reason the mods aren’t working?  Because the loans never should have been made in the first place.

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