Are mortgage loan modifications really working?...Well, no.
Matter of fact, it appears that the Obama Administrations HAMP program (major element of HAMP being loan mods) may be canceled very soon.
In this CNBC video a Wells/ Fargo describes how their loan modifications work...or don't work. What is not discussed in this video are the terms of a typical loan modification. For example, most loan mods are only temporary. Most loan mods do nothing with the negative equity. Most loan mods will temporarily reduce the borrowers payment by 50% (give or take). What happens the the 50% they are not paying? Its added to their unpaid loan balance. You get the idea. Loan mods in their present form are nothing other than more...extending and pretending.
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