More must be done, say loan modification specialists IBD spoke with.
Overloaded With Loans
“Really, we have a national catastrophe,” said Moe Bedard, president of Loan Safe Solutions, a mortgage-auditing firm in Corona, Calif.
Hard-hit by foreclosures, California is seeing a rise in efforts to help homeowners, but also a backlog. In July, the latest month for which data are available, 12,657 loans were modified, California Department of Corporations records on 10 servicers show. More than double January’s 6,214, it’s a good sign.
Dig deeper and the picture changes. Far more mortgage workouts are being started than finished.
Loan modifications — freezing or reducing interest rates or reducing principal — are one workout type. Among the several others are plans to bring loans current and home short sales to third parties.
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