At a time when one in eight home owners with a mortgage are "underwater" on the value of their home to their existing mortgage existing loan modifications are failing to prove an incentive for homeowners to stay in place. This afternoon, I again exchanged information with a home owner who received a loan modification and yet remains underwater and looking for a way out. Homeowner filed bankruptcy nine months ago and continued to feel the pressure of drop in home values in local market.
Banks advise they are less than enthusiastic about the current voluntary program that the Department of Housing and the Treasury have put in place. Banks excuse, what about those whose payments are current that do not fit the "underwater" diagnosis.
What do they do when an investment fails, they write it down. What is keeping the financial instiutions from offering the same to the hundreds of thousands of homeowners in need of a write down.
Please share your thoughts. At this time after all the money that had been thrown at the condition we still appear to only be postponing the foreclosure of homes in our market. As my husband has advised on numerous occasions, it would have been more practical to issue a check to the indiviual homeowner allowing them to pay down their mortgage. All the rest certainly has not made a major dent in the problem.
Phyllis Borchardt
Buckeye, AZ
(623) 521-0790
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