Posted on Tuesday, December 29, 2009
An estimated $75 billion is in default.
As of November 728K trial modifications had been proposed. Only 31K had been made permanent.
The biggest problem is allegedly borrowwers not turning in the required paperwork. Some banks only require some documentation to decide on a modification and then require the rest for a final approval. Others require all paperwork upfront. Supposedly the later system results in more modifications being implimented.