Real Estate, Finance and Mortgage Modification

A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford.

With foreclosure reaching nearly historic levels, the bank is truly not interested in adding your home to the ever growing list of foreclosed properties. The bank is, however, interested in collecting on your loan. The nation is educated now and is aware of the preditory lending techniques used by many brokers and banks to obtain mortgages for those people who should have never received them in the first place, and then were given the loan with the punishment of absurd and unmanageable interest rates adjusting to the sky. Shame on them! That dream, you know the one, the dream of home ownership with the proverbial "white picket fence"...Huh, it turned out to be more like owning a 9 ton pair of handcuffs that even the tornado in the Wizard of Oz couldn't shake off of you.

With the impending money crisis in America, the banks have graced us all with the possibility of new loan agreements and/or modification of the existing terms of our loans. I guess they have decided its better to collect some money then to become a real estate company in today's market. The banks are willing to modify as many loans as possible, as fast as possible, before the collateral damages bottoms out the median home prices. Each drop in the bucket shrinks the number of future foreclosures.

In mid October, the federal prosecutor indicated that charges will be filed in the coming months in an investigation of the banks and subprime lenders for their role in the nation's mortgage crisis. Hmmmm imagine that ?

Since the year 2000, lenders have made more than 2.5 trillion in subprime loans. Nearly all of these mortgages are going bad as millions of families lose thier homes. A large percentage of these mortgages were sold to those of us with credit scores good enough to qualify for loans with far better terms, but instead, we were given subprime loans by mortgage brokers motivated by favorable commissions using deceptive tactics.

The following list of subprime criminal CEO's that have been compared to the mob or drug cartel for their involvement in the economic meltdown.

2007 List from Forbes:

1. Angelo R Mozilo – Former CEO of Countrywide Financial - $144 million- 5-Year Compensation Total $295.73 million

2.Richard S Fuld Jr - Lehman Bros Holdings - $51.65 million - 5 year compensation unknown

3. James E Cayne - Bear Stearns Cos $38.31 million - 5-Year Compensation Total $155.26 mil

4. Lloyd C Blankfein - Goldman Sachs Group $37.05 Million - 5 year unknown

5. E Stanley O’Neal - Merrill Lynch $36 million - 5-Year Compensation Total $87.45 mil and Mr. O’neal was only at Merrill for 4 years. During the height of bad investments and subprime slime. Yet, as captain of Merrill, he averaged $20 million a year in income for running the investment firm into the ground.

6. Kerry K Killinger - Washington Mutual $22.73 million - 5 year compensation unknown

7. Charles Prince - Citigroup $19.67 million - 5 year compensation $68.92 million

8. Brad A Morrice - New Century Financial $15.22 million – Morrice was CEO of New Century Financial for one year and the same year, the company failed. Investors lost 99% of their stocks value. They were the #2 subprime lender

9. G Kennedy Thompson - Wachovia $10.79 million - 5-Year Compensation Total $48.91 mil

10. Robert G Wilmers - M&T Bank $10.45 million - 5 year compensation unknown

11. David A Daberko - National City $9.35 - 5 year compensation unknown

12. Richard F Syron - Freddie Mac $8.05 – 5 year compensation $15.91 million

13. John J Mack Morgan Stanley $7.46 million - 5 year compensation unknown

14. Raymond W McDaniel Jr - Moody’s $7.04 million - 5 year compensation unknown

15. Stuart A Miller - Lennar $6.73 million- 5 year compensation $84.51 million

16. Daniel H Mudd - Fannie Mae 3.94 Million - 5 year compensation unknown

17. Michael W Perry - IndyMac Bancorp $2.13 million – 5 year compensation unknown - IndyMac is now being controlled by federal regulators (FDIC) after it failed in July.

After giving the above information much thought, do you still really think that mortgage modification sounds too good to be true? I think not....rather, the criminals are attempting to back peddle out of a situation they clearly created before the 9 ton pound of handcuffs go on their wrists.

For more information and help with your mortgage, go to http://www.allmortgagemods.com