An expert rant on the real crooked-ness of the mortgage modification mess

You gotta love this guy.

I keep hoping my younger days of yelling louder than anyone else are over. I hope it’s maturity, wisdom; that kind of stuff. So it’s extremely refreshing when someone else (an esteemed expert) yells louder. But the points made in his latest rant are what all of us involved in the attorney-driven mortgage modification industry feel and want to say. Hats off to you, Mandelman.

He starts off with a brief account of the big noise from U. S. Treasury this past July. It was a big deal that 500,000 mortgages were supposed to be modified by Nov, 2009 (Right about now?) Never mind that that calculated to 13% of the estimated 4 million mortgages that needed, and supposedly deserved, a mortgage modification. Lots of noise for 13%, eh? (This apparently was interpreted by the lenders to mean ‘initiated trial modifications. Stay tuned here.)

Two weeks later, the lenders under the TARP program were exposed for the cads they are. Most all were less than 10% successfull in modifying mortgages.

I had not known that sending letters to distressed mortgage holders was what counted as ‘initiating a mortgage modification.’ What I was aware of was that many lenders for months had been offering forebearance agreements and loan reinstatements disguised as modifications. (They’re not.) I was aware that many of these actually had terms worse than the original terms. A mortgage modification offer that is not affordable to the homeowner is of no use; regardless of what it’s called. Kind of like telling the homeowner that a mortgage had FIXED terms (whisper: for 3 or five years and then your interest rate jumps to the moon.) Sound familiar?

I had understood that the ‘trial modifications’ that were routinely offered were designed to ensure that an unemployed homeowners would not be offered a permanent modification when they ultimately wouldn’t be able to afford their new payments in the long run anyway.

In this article, Mandelman exposes the ‘trial modification’ program for what I always suspected it was; pure BS. It is another way for the mortgage servicer to set up the distressed homeowner for failure.

I do wish he had highlighted the ultimate outcome of many of these ‘trial modifications.’ Many homeowners, after complying completely, to the letter, to the terms of their ‘trial modicication’ were refused a permanent mortgage modification. Never, ever, was an explanation given as to why the rug was pulled out from underneath the unfortunate, distressed homeowner. Many theories that basically exposed the fact that the lender actually made more money foreclosing than by modifying were put forth. The lenders have yet to be held accountable. Where is the U. S. Treasury Dept. now?

There’s more really valuable points in this article. Please stay tuned

This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now

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