WHY ARE THERE NO LOAN MODIFICATIONS?

People get very emotionally attached to their homes. Some of these homes are so far underwater that the owners may not see equity in their lifetimes. These loans were supposed to be modified. So far, I only know of one loan that has actually been modified.

I know you all think that the people who have these loans have only themselves to blame. I believe that the predatory loan and real estate people should also be blamed.

For example, I know a person who bought an small apartment building for WAY over its value. The person was told that he could make a LOT of money turning the apartments into condos. No one bothered to tell him that the city probably would not allow it, that the hot water was shared by all the apartments, and that the ceilings were almost certainly asbestos.

Homes were also sold with such optimistic (very close to fraud) sales techniques.

Banks do not want to do modifications for a variety of reasons. Couldn't we use the bankruptcy courts to force the banks to accept modifications?

I am not a bankruptcy specialist. I do not know whether this idea would need new legislation. Maybe the bankruptcy courts could use the same legal logic that they use to discharge second mortgages.

I honestly believe that the banks would welcome third party help with modifications. Banks understand profit and loss. What banks do not like is uncertainty.

So many people are doing anything they can to stay in their homes that the uncertainty in the real estate market is lasting longer than necessary. It is time to recognize that emotion also plays a part in people's attitude towards their home.

Let's get these loans modified, and move on.