If you're new here, you may want to subscribe to my RSS feed. You can also subscribe via email.Thanks for visiting!

Now borrowers who are current in their payments, but lack home equity, may be able to modify their mortgage loans to a lower interest rate.

Op Ed today muses:

Banks say they are overwhelmed by the clamor for relief and are working hard to meet demand. We have heard that before. In May 2007, a group of banks and loan servicers went to Washington to promise a solution for troubled borrowers. The problem has only gotten worse.  A more plausible explanation is that banks feel no great urgency to act.

They are being buoyed by immense government support.   And the Obama plan — which provides up to $75 billion in subsidies and incentive payments to help lenders and borrowers come to new loan terms — imposes no real penalty on lenders if the modifications don’t happen.

So instead of moving forcefully on foreclosure relief, the players in the mortgage chain — lenders, servicers and investors — have spent months parsing whether the incentives are adequate. Administration officials have spent countless hours clarifying the rules, trying to iron out the differences and pressing the industry to do more.

[emphasis mine]

There have always been banks that were great to work with when escrow problems showed up, getting payoff's, payment information, etc.  And there have been banks that were the worst! to work with . . . I won't name names, if you've tried to get something from your servicer you know whether or not they actually give any "service" to their customers.

I guess now they don't have to think about their customers being the ones who write their paychecks . . . after all, Obama seems to have pen to checkbook at all hours of the day and night to assist lenders, and while he's made laws about everyman's mortgage being made manageable, apparently the incentives to the lenders to make them manageable just aren't enough incentive.

Couple that with organizations who have absolutely no reason to impress you with customer service, because you are stuck with them until you pay off your mortgage or refinance, it looks like stalemate for the economy, after all.

If you'd like to see if you can have your loan modified, we'll certainly do everything we can to get it done . . . DIY Mortgage Loan Modification