been there

Has President Obama's Mortgage Modification Plan Failed?

yeah and falling oil prices caused the depression in the oilfield in the 1980's as the saying goes no shit sherlock


On Aug 21 09:33 AM enigmaman wrote:

> falling home prices is the biggest problem facing mortgage modifications,
> unless there is a sizable spread between its current loan to value
> lenders will be less inclined to do modifications. Since values continue
> to drop and its been estimated that currently 25% of mortgaged homes
> are underwater and will rise to 50% in the next few years lenders
> have little incentive to erode their portfolio any more then it is.
> No lender wants to refi a questionable loan carrying a higher rate
> for a still questionable loan at a lower rate, especially with home
> prices continuing to fall, if the property value is going to drop
> why not keep it on the books with a lower loan amount carrying a
> higher rate, then provide a higher loan amount at a lower rate, it
> makes no sense, there is no real upside to the lender, yes the program
> is a failure and should be accepted as such.