“Mortgage Deal”
Posted by kevin on March 5, 2011 under Foreclosure Blog | 
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Last week, an article ran in the major newspapers that the Obama administration is negotiating a multi-billion dollar deal the mortgage loan servicers which would allow for mortgage modifications which reduce principal amount due on mortgage loans. The “deal” would not create government programs to reduce the principal but would rely on the lenders to make the reduction.
It goes on to say that any settlement would entail that lenders, servicers, federal regulators and state attorney generals all get on board. This is a diverse group with competing interests.
My take. Don’t hold your breath. The lenders and servicers are going to do nothing meaningful on their own accord. They may promise to cooperate and act in good faith, but nothing in the history of mortgage modifications indicates that they will act in good faith.
