Doctors can be sued for malpractice and lawyers for malfeasance, why can’t the real estate agents who whoever was encouraging and approving these people for these toxic ARM/NINJA mortgages also be sued for malfeasance? Of course the consumer has to do their homework, but when someone is given terrible advice or information is withheld by the alleged professional in the relationship, the fault lies with the professional.

I think the hard reality is that if someone can’t pay their mortgage today, then modifying the loan is just prolonging the inevitable (i.e. foreclosure). And in the mean time the bank is carrying high risk/low cahflow debt. Not a good thing.

The banks aren’t as dumb as Obama et. al. have panted them. They see the economy – especially the jobs market, particularly for high paying jobs – just isn’t going to rebound in the foreseeable future no matter how glowing Obama speaks of “creating or saving jobs” (still looking for the proof he saved even 1 non-gov or gov contractor job!).

The answer is simple.

In the area I live in there are so many foreclosure auctions going on and the prices that mortgage companies are receiving are so ridiculously low that you would think it’s more cutting off your nose to spite your face.
I guess it’s easier for them to just take a huge loss and be done than try to modify and maybe get double/triple the return.

>Someone borrowed money on certain terms.
They can’t live up to those terms.
The bank takes back the collateral.
Period. <

In normal times your example makes sense but right now with how many homes are out there and the amount of collateral that is in play you would think it would make sense for these companies, where it makes sense, to try for a higher rate of return on their investment instead of just seemingly just pushing the dump button all of the time.

Someone borrowed money on certain terms.
They can’t live up to those terms.
The bank takes back the collateral.
Period.

No one would cry over someone loosing their car for the same reason. But doesn’t a person need transportation to get to/from work? School? The doctor? The supermarket?

I’d bet a week’s pay that half if not more of these people are in their first house bought with in the last 5 years for zero-down.

I read your blog regularly and you are usually right with most of what you post but on this one you are completely off base.

I am a Chase customer who has tried for a modification due to a job loss and extended unemployment and I will say that in my experience your Chase example is not reality.

The truth is pretty much what Duececlub wrote. I have called more people at Chase than I can remember and have received at least 8-9 stories of what documents they wanted and how long it would take and how the process would go.

It is impossible to speak to the same person twice and each time you have to start over since they have always “misplaced” something. When they don’t have just one document they tell you that the rest don’t count and you start over.

The income verification part that Duececlub wrote about is spot on. If I send then something today, guaranteed I will not get any response within 30 days and when I do get a response or when I finally am able to speak with someone with decision making abilities 30 days plus will have past and then you start by having to send the whole packet again.

Yes, I’ve contacted Obama’s website and yes I have tried the attorney route and Chase pretty much couldn’t care less about either.

I’m not going to debate the politics about whether this program should or shouldn’t exist because it does and apparently it’s not going anywhere.

But at least with Chase there are no gift cards, no one is chasing me down, I am not lazy, and I sure as hell am not a stupid homeowner. I believe now that Chase has paid back the TARP money they are more or less flipping the bird to the Feds by no longer actively participating in Making Home Affordable and by making the process hell for the homeowners who are trying to make this work.