How To Improve Loan Modifications

I don’t know why they don’t go back to the Hope for Homeowners loan if they are going to loan modifications.  The Hope for Homeowners in a nutshell is a new loan at 90% of the current appraised value.  If you are going to do loan modifications I think this is the way to go because the appreciation is shared with the government, it would be a mortgage manageable payment, it’s a fixed rate loan, and now the borrower isn’t upside down.  Anyway, you can decided.

“The first shortfall is that the program doesn’t provide a clear process to triage the over 7.5 million delinquent loans. The second is that it doesn’t take into account that the primary reason borrowers default is “negative equity.” When a house is worth less than what is owed on it, making monthly payments seems like a waste of money and many homeowners walk away.”

http://online.wsj.com/article/SB20001424052748704342404574577853961145272.html#mod=todays_us_opinion