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Tuesday, June 22, 2010

Are Mortgage Modifications a Bunch of Smoke and Mirrors?

From CNNMoney: Mortgage Modification plan helps few borrowers

[H]ome Affordable Modification Program, saw a surge of people leave the initiative in May. More than 152,000 have had their trial adjustments cancelled since the program started, mainly because they could not document their income or because they earned too much to qualify for assistance, officials said.

However, 48.9% of those who had their trials cancelled received alternative modifications, according to data culled from the eight largest servicers. Nearly 10% brought their loans current, while 3.6% landed in bankruptcy and 7% in foreclosure. Some 2.1% have been able to leave their homes through short-sales or similar actions, while 26.1% are still waiting to learn their fate.

The number of trial modifications started continues to ebb as more servicers required borrowers to document their income before entering the program.

Many borrowers are complaining they are not getting any help from banks. Is this because they really don't qualify because they make too much money or are banks just full of crap?

 It also seems the source of this article re-wrote it under the title "Delinquent borrowers get help outside Obama mortgage plan." Someone must have thought this title sounded more PC. Might just be more smoke and mirrors. What do you think?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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