MODIFICATIONS ARE NOT IN FAVOR AT THE BIG THREE.

Many homeowners have operated on the belief that their loan will be modified by their lender. The reality is just the opposite. Lenders have little or no incentive to modify loans as the statistics have shown that the modified loans are highly likely to default. 

Most of the modified loans are so upside down, ( negative loan to value) that a modification was not in the owners economic interest in the first place. The truth is that good economic decision making is often cast aside when making decisions about your home.  After all, home is where the heart is. 

The Chicago Tribune reports that the FED is withholding payments from the three largest banks for poor performance reviews on their HAMP reviews.  This further reinforces the point that I have been making that short selling these properties is an essential component of restoring this country to economic health. A bloated defaulted real estate market is dragging the entire United States economy down. The banks are still withholding 3 million plus vacant homes from the market out caution for a second large reduction in residential real estate prices which would be spurned by the exposure of these properties to the market. 

 

Owners who are in distress should strongly consider short selling their property.