How Voluntary Mortgage Modification Program Failed America
It's time to face the ugly reality of this foreclosure crisis, the administration's Making Home Affordable program had failed terribly. Not only have we not stopped the foreclosure crisis, it has worsened. The program was supposed to help 3 to 4 million Americans facing foreclosure ; but so far only 360,000 homeowners have received mortgage modifications on a three month trial basis. Why is that?
The truth of the matter is that the mortgage industry has no incentive to modify mortgage so that struggling homeowners can avoid foreclosure. They are the prime reason that we are in the foreclosure crisis and have so far escaped any consequences for their actions. A matter of fact, they have received numerous bailouts while the American homeowner has faced rising foreclosures and more difficulty receiving the help they so desperately need. So what should the American homeowner and taxpayer do? We need to make a change now. We need to give the bankruptcy courts the power to modify toxic mortgages and help stop the foreclosure crisis. Even our legislators are getting tired of the mortgage industry dragging its feet. Congressman Barney Frank recently put mortgage lenders on notice:
"The best lobbyists we have for getting bankruptcy legislation passed are the servicers who are not doing a very good job of modifying mortgages. And if they do not improve their performance, then they improve the chances of that legislation," he said.
The mortgage industry has already shown its true colors. Millions of Americans are facing foreclosure with no help in sight and it is expected that an additional 9 million Americans will lose their home to foreclosure by 2012. The time for change is now.