The U.S. government’s mortgage relief program has helped only 12 percent of the homeowners who have signed up in the year it has been available, according to the Boston Globe.
According to Valparaiso University law professor Alan White, “I would say it’s a complete failure at this point.’’
Large banks also have huge volumes of loan modification applications that they can’t keep up with. Bank of America, Chase and Citi are still sitting on the paperwork of more than 90% of their applicants.
Until something changes dramatically, bankruptcy protection under either Chapter 7 or Chapter 13 will remain the quickest and most efficient means of dealing with “under water” real estate that is available to many consumers.
By Doug Beaton