Does the Obama Administration read the New York Times? Then perhaps today’s paper will point out that voluntary loan modification isn’t working. Papers lost, hours on hold, arbitrary denials, the litany goes on. The Administration can’t tell us how many loans have been modified.
The mere existence of a “program” such as the Times shows in action gets lenders a pass on the extended period for California foreclosures. Yet you have to think a “program” that can’t even track the applications, much less consider them is only window dressing.
Changes to bankruptcy law to allow the modification of home mortgages through Chapter 13 were defeated in Congress this spring. Opponents touted the sanctity of contract. Banking interests (who made the crisis possible with rotten lending practices) promised to voluntarily help the “deserving”, with sweeteners from the Obama HAMP and HARP plans.
Economists tell us that the recession won’t end til the housing market stabilizes. Santa Clara County experiences 67 new foreclosure proceedings a day.
Voluntarism, a marvelous thing in the life of our communities, isn’t cutting it in staunching the torrent of housing loss. It remains time for judicial mortgage modification.
The government really needs to get involved a lot more. They put this in place and really need to follow through. The lenders are just not getting them through and I think many people feel intimidated by what is involved and are not even going through the process or better yet many of them are being flat out denied. Thanks for the information, hope something really gets done about this one of many problems the American people are facing today.