MODIFICATION NEWS

Treasury punishes top servicers for failing troubled homeowners

On June 6,  Tami Luhby of CNNMoney posted an article that announced that the US Treasury Department is withholding incentive payments to Bank of America, JP Morgan Chase, and Wells Fargo because they are not processing Mortgage Loan Modifications fast enough.  I for one am disappointed that those who should be getting a modification are waiting behind those that beat the system once and now are trying to beat the system a second time because those that make the rules don't always understand what they are doing. 

• THE FOLLOWING IS MY COMMENT WHICH I POSTED TO CNN MONEY IN RESPONSE TO THIS ARTICLE.

•  <!--<a href="#" mce_href="#" onclick="return DISQUS.dtpl.actions.fire('comments.collapse', this, 222610559);" title="Collapse thread"></a>-->I am really tired of paying for modifications when the system favors those who under report income to the IRS. Do you wonder how many borrowers are trying to modify a loan they obtained by claiming income greater than they reported to the IRS? Before they should be allowed to modify, the servicer should look at the overstated income they claimed and assume that the same percentage of income continues but is just not being reported. Now only those who really need a modification will have a chance at obtaining one.