The LA Tiimes reports that loan mods have crashed, perhaps in a sign that homeowners have far more financial problems than just a loan mod can cure.
"Even with a substantial reduction in mortgage payment and even some reduction in principal, you still have people who are over their head financially because of their reduced financial circumstances," independent analyst Bert Ely said. "Isn't it time to just rethink this whole business of modification ... and let the market clear through foreclosures and short sales?"'
If that seems harsh, perhaps it just speaks to the state of the economy and the unsustainable weight of equity loans, credit cards and lack of employment. Here in the North Bay, unsustainable mortgages are certainly not the only think leading people to seek bankruptcy protection.
