Loan Mods--Are They Working?

Hello, again. As we move further through the foreclosure crisis in the country, we now have received news from Freddie Mac that casts a possible shadow on the loan modification situation. While the Treasury Department recently announced that over 500,000 'temporary' mods have been complete, many of these have not continued to permanent modifications, even after as many as five monthly payments in some cases. Part of the issue is the documentation necessary. This could be a troubling situation because if these temp mods do not become permanent, then many homeowners will be back where they were before doing the mod. Officials are attempting to rectify the situation by reducing documentation to as few as two pages. So this problem may get resolved in the next few months. For now, it is something to keep watch over.