Actively seeking some success stories about the loan modification, they are few and far between. Instead we read about how one part of a mortgage company is uninformed about what the other is doing. Take for example the Franklin family of Airville, Pennsylvania. They applied for and faithfully adhered to the loan modification program guidelines. However, the day after Christmas they received a letter stating that foreclosure proceedings had begun. This after their credit was ruined and they ended up owing more than their original amount after months of paperwork and red tape.
On a single day in early January, she [Debbie Franklin] says, one Chase representative told her that the loan modification plan had been denied, another said it was approved and a third told her the foreclosure had been “suspended.”
“I check my county auctions every Monday to make sure my house isn’t on there,” she said. “I don’t believe anything they say anymore.”
My advice to the Obama Administration is to focus on real mortgage relief rather than just rescuing the housing market. There are people able to pay for mortgages but unable to refinance because homes are not worth as much as their mortgages. With a simple loan modification like reducing the interest rate, that $200 or $300 could be the difference between someone keeping or losing their home.
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