As an attorney who works primarily in foreclosure defense, it makes me mad as hell that the lenders that have caused this mess are not working with borrowers. It makes me even madder (I know that’s bad grammar but I’m pissed) that the federal government (that’s my money and yours) is being paid to these lenders to engage in such bad practices.
How Much for a Modification?
If you’re one of the 31,000 people who have received a formal mortgage modification, congratulations. Out of the millions of people who are in mortgage trouble and the thousands who have applied for a modification, government reports that only 31,000 people have actually received one. The price tag for these lucky few?
$75 billion dollars!
That’s the total amount that the feds have pumped to the very lenders that caused all this mess to encourage them to do modifications. The administration had set a goal of 500,000 trial modifications by November 1. (Guess we missed that goal by just a wee bit.) In response to this disastrously low number, many mortgage-servicing companies complain that they cannot get information from borrowers. As reported here, and elsewhere, my clients show me again and again proof that they have sent in all required documentation, but the lenders lose this documentation again and again and again. How can the lenders be counted on to process modifications when they cannot manage the paperwork they have coming in?
Through November, more than 728,000 borrowers had begun making trial payments under the plan, up from 651,000 in October, with modifications saving borrowers an average of more than $550 a month, the Treasury Department said. For more information, visit the Wall Street Journal Article here or visit my website at www.mattweidnerlaw.com