flu, I believe the failure of this program is because lenders are averse to reducing the principal balance, so the very low-interest “modified payment” doesn’t even look good to the borrower, even if they have the CAPACITY to pay their mortgage. Thus, the high “drop-out rate” from the program.
Since I personally don’t believe in the reduction of principal either, these lenders should now see their way clear to foreclose and get all these shenanigans over with.
It seems many of these “modification applicants” did not have to produce documentation to obtain their original mortgage so, naturally, are averse to doing so now . . . and/or can’t, because they don’t have any.
The percentage of borrowers helped from this program probably does not justify the enormous amount by the govm’t spent to keep the program running and pay off the banks for each “successful modification.”
Now, due to all these mis-steps by the govm’t, it’s going to take at least until the end of next year before we will be able to begin seeing the light at the end of this lo-o-o-ong tunnel. So sad :=[
