As I said BG, they’re incompetent. They are ill equipped to deal with distressed assets. Keep in mind, for the most part, we’re not talking about banks, we’re talking about loan servicing organizations. They get paid a tiny margin for collecting payments. Because they are not (always) the investor, they have little motivation to complete mods. They make more on foreclosure but they don’t have the manpower. (hence the robo-signing, mostly in judicial foreclosure states.)