What I am talking about is loan modifications and it’s my belief that modifying borrowers mortgages is the only way to place a band aid on the gaping wound of our country’s economy. There is no other solution. Plain and simple.
One of my favorite TV shows is Jim Kramer’s “Mad Money”. He keeps talking about the Fed and Bernake. Jim seems to think that the only way to pump some money into Wall Street and to help save our economy is through a rate decrease. I think that would help but how is that going to help the millions of people that are stuck in ARM mortgages and they can’t refinance out of them? What good is a rate decrease going to do for them? It wont help them at all!
The facts are that most all of the subprime mortgages written over the last three plus years can be modified. Meaning that lenders can work with borrowers and modify these crazy mortgages into fixed rates, lower rates, longer terms, waive penalties etc. But you have a system that is based on greed and not common sense. Yes, it’s business, but it’s stupid business when everyone can cut loses significantly by streamlining the loss mitigation system.
I work with these lenders and servicers daily. It’s a joke how unorganized and pathetic these loss mitigation departments are operated. They are set up to fail and need a complete over haul. Instead of sticking millions into advertising, they need to stick millions into these departments and train their people better. Because I can tell you right now, that most these employees could care less if you lose your home and the economy goes in the toilet.
Lenders need a reality check. They need to understand that 20 year old kid in collections is costing them millions of dollars because he’s an ASS and that lady in the short sale department has a chip on her shoulder that is also costing you millions. Don’t believe me? Wait till I post my recorded phone calls with your idiot employees. I’m sure a lot of jobs will be lost then!
But if you called the refinance department you would be handled like royalty. Too bad no one can refinance right now! So, your logic just baffles me!
There needs to be a streamlined system that ALL lenders and servicers abide by in the loan modification process. It makes me sick to see Countrywide and Lending Tree commercials all day and not one commercial geared towards helping homeowners in distress and giving them accurate information to help them avoid foreclosure.
Why the hell isn’t the SEC and Wall Street demanding that servicers and lenders start performing mass loan modifications
