[quote=SK in CV]BG, none of these programs “bailed out” lenders. There have been over a million permanent loan modifications to date, and not a single one of them resulted in the lenders being made whole. And none of the programs motivate the lenders to allow homeowners to stay in their homes without making payments. Indeed, to the contrary, if a homeowner has stopped making payments and a loan modification is being attempted, the motivation would be for the lender to get the agreement in place as quickly as possible. . . .[/quote]
SK, why do you think the bulk of delinquent trustors were permitted to “squat” for many months/years before their lenders approved for them permanent modifications (or foreclosed on them) if the motivation was to “get the agreement ASAP?”
I personally witnessed delinquent trustors here in CA having their application for mod in suspense for up to ten months before they heard anything at all from their lenders. Meanwhile, they were “squatting” and also not paying taxes and homeowner insurance premiums.
Two of these squatters were foreclosed upon by the “left hand” (trustee) simultaneous to the “right hand” (lender’s collection dept) accepting their mod applications and asking for further documents :=0.
Lenders took severe unreimbursed losses only because they were unwilling to foreclose in a timely manner to which they were allowed by law and there was absolutely nothing stopping them from doing so.
There is obviously a very good reason why a Big Bad Bank is completely unwilling to go get their asset which is not performing so they can recover as much as they can for it and get it off their books. And that reason is NOT “incompetence.”
