Since I think my comments above started some of the back and forth here, I thought I’d clarify a few of my thoughts on this.

I think its these “non-profit housing counselors” who are bugging me. If their client truly was misled or defrauded, or the loan servicer is making a mistake, these “experts” should get a lawyer on the phone ASAP to save the person’s house and possibly get them a ton of money back. Don’t just parade them to the press as a “victim” if they really are one- do something about it.

But these “housing counselors” are not doing any favors for their clients if all they do is yell and scream and demand that the mortgage payment be lowered 10% a month. Even if they negotiate this change, they still have a client drowning in debt and unable to save for other needs. Sending the keys to the lender is the best “modification” lots of people can make, and they need to start getting that advice. Too many people are going to be slaves to bad financial decisions they made in 2005-2006.