This American Life, a program on Chicago Public Radio, recently featured a show entitled “The Mod Squad,” which discusses the roadblocks associated with executing mortgage modifications.
While modifying mortgages and keeping people in their homes seems like a win-win for both the borrower and the lender, reporter Chris Arnold shares why many homeowners aren’t getting the attention they need. In particular, Arnold notes that many servicers enforcing foreclosures are doing so simply because they don’t have a system in place to handle the volume of loan modification requests they receive.
While the episode highlights reasons why big banks are unable to process these requests, it also features Ocwen – a smaller servicer that has had success in modifying a large number of loans. In fact, the company says that about 75 percent of the time, they can create a plan that accommodates what homeowner can afford.
To learn more, please Listen to the Episode.