{"id":10513,"date":"2009-12-08T08:57:00","date_gmt":"2009-12-08T15:57:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=10513"},"modified":"2009-12-07T20:05:57","modified_gmt":"2009-12-08T03:05:57","slug":"modifications-are-failing-more-on-the-acronym-soup","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10513\/modifications-are-failing-more-on-the-acronym-soup\/","title":{"rendered":"Modifications are Failing&#8230;. (More on the Acronym Soup)"},"content":{"rendered":"<p>There&#8217;s a couple of interesting and yet disturbing points to this report from CNBC:<\/p>\n<ul>\n<li>over 2\/3rds of the people who are currently in the trial period of loan modifications are not going to qualify for the permanent modifications.&nbsp;&nbsp; Why?&nbsp;&nbsp; A couple of likely possibilities:&nbsp; 1) They are too far upside down and are looking at it and saying, &#8220;I&#8217;m out of here.&#8221;&nbsp;&nbsp; 2) They aren&#8217;t willing to provide documentation of what their financial position is because it would make it evident that they had lied on their loan application and that&#8217;s a federal offense last time I checked.<\/li>\n<li>I had a past customer call me on Friday and said that he was never told that his short sale paperwork had an expiration date (which has now past).&nbsp;&nbsp; He said it took too much work and he&#8217;s not going to do the paperwork again.&nbsp;&nbsp;&nbsp; I didn&#8217;t ask him what his plan is from here, but I think it illustrates the pain and frustration that so many people are feeling in the process.&nbsp;&nbsp; They just throw their hands up in the air and say, &#8220;I give up.&#8221;<\/li>\n<li>If 2\/3rds of the loan mods don&#8217;t go to permanent status, what do you think that&#8217;s going to do to the number of foreclosures?&nbsp;&nbsp; Yeah, that&#8217;s right, it&#8217;s going to increase them.<\/li>\n<\/ul>\n<p>The entire way that the banking industry is handling foreclosures, short sales and loan modifications isn&#8217;t designed to encourage participation (or perhaps mandate participation?)&nbsp;&nbsp; Until we get an organized and systematic way to deal with the facts that:<\/p>\n<ol>\n<li>We have many people who took out loans that they never had a chance of paying on time.<\/li>\n<li>We have many people who took out loans that are worth way more than their houses are.<\/li>\n<li>We have many people who took out responsible loans and have had bad things happen to them and now aren&#8217;t able to make their payments.<\/li>\n<\/ol>\n<p>All three of these require different responses and a different way to effectively resolve the challenges that we&#8217;re facing.<\/p>\n<p>If you ask me, the government and the banking industry haven&#8217;t figured out the way to deal with them that really works yet.<\/p>\n<p>Tom Vanderwell<\/p>\n<p>P.S. You&#8217;re probably <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10513\/modifications-are-failing-more-on-the-acronym-soup\/#more-10513\" class=\"more-link\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There&#8217;s a couple of interesting and yet disturbing points to this report from CNBC: over 2\/3rds of the people who are currently in the trial period of loan modifications are not going to qualify for the permanent modifications.&nbsp;&nbsp; Why?&nbsp;&nbsp; A couple of likely possibilities:&nbsp; 1) They are too far upside down and are looking at [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[437,436,435],"class_list":{"0":"post-10513","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"tag-acronym-soup","8":"tag-hamp","9":"tag-loan-modifications","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5900,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5900\/investor-sues-to-block-mortgage-modifications\/","url_meta":{"origin":10513,"position":0},"title":"Investor\u00a0Sues to Block Mortgage Modifications","author":"Tom Vanderwell","date":"December 2, 2008","format":false,"excerpt":"The battle over the mass modifications of troubled mortgages has begun in earnest. On Dec. 1, William Frey, a private investor in mortgage-backed securities, filed a lawsuit in New York State Supreme Court alleging that the proposed modification of some 400,000 home loans originally underwritten by the defunct lender Countrywide\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10763,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10763\/new-york-times-on-the-loan-modification-program\/","url_meta":{"origin":10513,"position":1},"title":"New York Times on the Loan Modification Program","author":"Damon Chetson","date":"January 2, 2010","format":false,"excerpt":"The New York Times is reporting what everyone at Bloodhound Blog has known for a long time about the Federal Government's attempt to encourage loan modifications: The Obama administration\u2019s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4858,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4858\/will-mortgage-brokers-be-the-hope-for-homeowners\/","url_meta":{"origin":10513,"position":2},"title":"Will Mortgage Brokers Be the Hope For Homeowners?","author":"Brian Brady","date":"October 8, 2008","format":false,"excerpt":"The FHA Hope For Homeowners program was designed for existing homeowners, struggling with mortgage payments and an \"upside-down\" equity position in their primary residence.\u00a0 It is a new program with lots of misinformation.\u00a0 Some believe it can only be offered by existing loan servicers, some think only participating lender\/servicers can\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8998,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8998\/vultures-to-the-rescue-hooray\/","url_meta":{"origin":10513,"position":3},"title":"Vultures to the Rescue &#8211; HOORAY!!!","author":"Mark Green","date":"June 26, 2009","format":false,"excerpt":"What the hell is a Forensic Loan Audit you ask? According to the SPAM email (above - I drew the boxes for\u00a0emphasis) that landed in my inbox last night, a company called National Loan Auditors provides a service that: 1)\u00a0 Markets to loan originators with the purpose of providing loan\u2026","rel":"","context":"In &quot;Dirty Laundry&quot;","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"Here's the email - I added the red boxes","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2009\/06\/nla-spam.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":7179,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7179\/do-loan-originators-see-the-opportunity\/","url_meta":{"origin":10513,"position":4},"title":"Do Loan Originators &#8220;See&#8221; The Opportunity?","author":"Brian Brady","date":"February 27, 2009","format":false,"excerpt":"\"If you thought REALTORs were behind the learning curve in Web 2.0, you should see the lenders\" If you're a loan originator, reading this article, congratulations.\u00a0 There are some 300,000 working loan originators today and I'm guessing that about 1% of us are actively using social media.\u00a0 Certainly, the REALTORs\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2985,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2985\/its-raining-soup-why-are-you-starving\/","url_meta":{"origin":10513,"position":5},"title":"It&#8217;s Raining Soup.  Why Are You Starving?","author":"Brian Brady","date":"April 18, 2008","format":false,"excerpt":"I'm pretty stoked about our new contributor, Chris Johnson. I spoke with him yesterday about his new book, Loan Officer Survival Guide. He was amazed that the two people he cited as NOT needing the book, bought it. So... why did I buy his book? I bought it for the\u2026","rel":"","context":"In &quot;Blogging&quot;","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=10513"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10513\/revisions"}],"predecessor-version":[{"id":10514,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10513\/revisions\/10514"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=10513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=10513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=10513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}