How can it be that of the millions of homeowners, loan modification companies, and attorneys applying, less than 200,000 homeowners nationwide have gotten loan modifications? The banks report to Obama that people fall through the cracks because of missing documents or failure to follow up; however, anyone who works in this industry or has tried on their own to get a modification knows that can't be the truth. No matter how many times you submit, resubmit, call, or mail things to follow up, you will no doubt be told everything is fine one day, then that you were supposed to send new paystubs the next day and because you didn't, your file is closed and your home will be sold.
It is quite apparent that the banks have no intention to finalize anything more than a small number of modifications to show the president they are trying. If you are an investor holding loans serviced by these banks, I would be outraged by their either intentional dismissal of help or complete and utter disorganization. Some have theorized that the banks want to take over a large number of homes and only slowly release them for sale to artificially boost the home buying market and prices. This potentially rises to the level of anti-trade violations if there is collusion by several banks to do this by artificially fixing markets and prices. When will the justice department get involved to investigate? Probably never because the banks will just keep blaming everything on homeowners not working with them when we all know that isn't the case.
The only thing that makes sense based upon these facts is an intentionally willingness to not modify loans or stop foreclosures. Not only are large banks possibly doing this, but they then refuse to lend any money to small business or new home buyers. I suggest closing any bank accounts with large banks and opening new accounts with small banks or local credit unions and keep your money out of the hands of the greedy corporations.
I once again call on Congress and the Obama administration to push realistic financial reform and pass legislation to allow primary residence 1st mortgages to be reduced to market value in bankruptcy.