Earlier this month I wrote an aticle and asked if anyone was a aware of a successful loan modification.
Our local paper, The Press Democrat devoted the the front page of the Business section to a story titled "Trying to Modify" which describes the struggles a local family is going through to obtain a loan modification. The hurdles that they have encountered would depress anyone and I am sure that there are stories like this all over the country.
These are some of the hurdles they have encountered.
1. Submitting paperwork numerous times without any response from the bank.
2, Borrowers can be ruled ineligible for earning too much or too little money, or having too many assets
3. With their initial down payment of $120,000 in 2005 their house was worth X ..now the value of the house is less and the amount of improvements they have made have put them further under water.
4. Rents have declined. The family is caught between a rock and a hard place. They cannot rent or refinance because there is not enough equity in the house.
This is hard working young family with 2 young children. They bought their house to be in a neighborhood were their children would go to the local school.They have done all the "right" things and continue to work within a system that is not working for them and millions like them.
Elizabeth Warren, Chairman of the Congressional Oversight Panel for TARP and a professor at Harvard Law in her most recent report said, "This is NOT working."
All of this confirms that Obama"s plan is in desperate need of Plan B!