Loan Modifications, Servicers and Who Is Profiting From the Credit Crisis

The news is full of loan modification horror stories describing how homeowners have struggled for months with lost documents, changing standards, unreasonable loan modification agents and the slow tides of bureaucracy. Bad news does always seem to travel faster and further so you don?t hear half as much about the hundreds of thousands of loans that have been successfully modified. However the question still remains why loan modifications are moving so slowly if the government is willing to pay the bill for the expenses mortgage servicers and investors have to incur when modifying a loan. Recent studies seem to indicate the reason is that the incentives and handouts the government is making through HAMP and TARP just don?t cover the real cost of modifying the fast increasing volume of loan