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Loan Modification Program Failure Led To Increased Foreclosures



Hey Sheila, people are suing your agency for kicking them out of their homes!

 

“What you probably haven’t heard before is that these victims are being foreclosed on by the Federal Deposit Insurance Corp., a federal agency that generally pushes to keep people in their homes by reworking loans rather than foreclosing them...

 

When the bank that held the Clarks’ mortgage went under in July 2008, the FDIC took over, Williams said. But, rather than renegotiating the mortgage, the FDIC continued the foreclosure process…

 

A recent report by the NCLC says that programs designed to encourage loan modifications have failed to slow the nation’s foreclosure crisis — in part because mortgage servicers find it cheaper to foreclose than to restructure”
www.flippingfrenzy.com/2010/01/26/minnesota-homeowners-ripped-off-by-mortgage-brokers-fight-the-government-to-save-their-homes/
loanmodificationexplosion.com/2009/10/do-loan-servicers-really-prefer-foreclosures/
blogs.consumerreports.org/money/economic-stimulus/
www.huffingtonpost.com/2009/10/21/perverse-incentives-lead_n_328378.html

"... programs designed to encourage loan modifications have failed to slow the nation’s foreclosure crisis — in part because mortgage servicers find it cheaper to foreclose than to restructure"

Yeah, I say that's a problem, don't you?


*imho*