Sara, if you follow all the news from both "camps" it is becoming quite obvious that there really is very little to be done. Modifications can not be executed since the actual owner of the note can not be identified. And at some point there will be a limit as to how many foreclosed properties can be held on a balance sheet. Without gainfully employed people and a stable JOB market theses properties will sit unsold.Couple that with stringent lending standards ( remember them) and there is an ever shrinking amount of people to qualify for a mortgage. A dilemma indeed
The fact is , the hard currency is non existent, they all know it and they know that the american people are quickly figuring it all out. The more the pretender lenders & the investor class try to spin everything the clearer things become. That is why they can not "print" money fast enough in DC to cover the balance sheets of their friends at Goldman & AIG who actually hedged against the implosion of MBS's and the housing bubble and have been made whole with again "vapor currency" also known as our national debt.
The current position @ the FDIC pushing for "principle reduction's" on mortgages will yet again be and in my opinion the final blow to the american people. With banks being forced to put "toxic assets" back on their balance sheets, the FDIC who insures these banks will implode and require another taxpayer bailout.
The question here is who & how will an individual qualify for a "principle reduction" this is yet another smoke and mirror game. Again there will have to be "permission" granted from the trustee of the note lost in an MBS pool, not the Mortgage Servicer or the bank. Just like modification's good luck with that!
We need to get the fox out of the hen house, Dodd is going, Frank needs to be brought up on federal charges and Fannie & Freddie need to be shuttered NOW.
We need adults in DC. Individuals that will tell the truth and work to fix this mess, which as we can see will not be easy as every so called "solution" has led to a much bigger problem.