Last month House Banking Committee Chairman Barney Frank (D-Mass.) said mortgage modification programs may be helping more homeowners but they aren’t anywhere near the level they should be. These programs are coming in the form of the Obama’s Making Home Affordable (MHA) and HAMP, plus many more mortgage modification options that are offered by the financial institutions. In general, homeowners are very much in agreement with Barney Frank’s assessment about Mortgage Modifications and Mortgage Workout Programs.

Earlier this year, the “cramdown” legislation, passed the Senate but not the House. The “cramdown” permitted bankruptcy judges to Note Adjustment primary home loans; basically it gave them the authority to force the credit unions to do a Loan Modifications. The reason it didn’t pass the House is that mortgage lenders promised they’d take care of the problem and help families avoid foreclosure through Loan Workout.

So far, mortgage companies are not taking care of the problem and are far from the Governments expectations of providing Note Workout to homeowners. Too many homeowners that should be qualifying for the Note Workout are still being denied. credit unions such as Wells Fargo are at the top of the list for not meeting Government expectations on credit unions. Remember, these mortgage companies received millions of dollars of Troubled Asset Relief Program (TARP) money or easier to say, tax payers tax money that was implemented during the Bush Administration!

Those in the financial institutions industry must understand that if there are not a significant number of Loan Workout to stop this problem that there is a strong argument to revive the bankruptcy “cramdown” legislation. It seems extremely strong that the way the servicers are handle Mortgage Workout that it is not sufficient enough to handle the current problem. It will surely strengthen the comeback of the “cramdown” legislation and this time it would probably pass.

Last month many cities hits double digit marks for unemployment. This can only follow with more homes needing Mortgage Workout to avoid foreclosure as unemployment correlates to the number of foreclosures.

In addition, homeowners close to retirement have found that their retirement is gone, lost by Wall Street. Or they had to borrower from retirement to pay their mortgage because they couldn’t get a Mortgage Modifications. Some have even borrowed money from their credit cards and have racked up a significant amount of debt to just pay their mortgage.

Some homeowners have filed for bankruptcy to relieve themselves of all debt but their home loan so that they can qualify for a Loan Workout. If you plan on doing this make sure your Attorney carves the home out of the bankruptcy and that it is written clearly in the paperwork. In general, you will need that specific information from the Bankruptcy Attorney in order to qualify for a Mortgage Workout. Consulting with a Loan Modification Attorney and having them handle your loan modification would be the best bet to get your Note Workout done correctly.