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Here's some more evidence, from CNNMoney.com (Tami Luhby - on December 10, 2009) that makes you wonder how anyone can think there's a so-called "recovery" on the horizon:

"... Only about 4% of troubled borrowers have received long-term help under the Obama administration's foreclosure prevention program, Treasury officials said Thursday.

A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

But 30,650 people in trial modifications have been denied, according to Treasury officials.

The dearth of permanent modifications has fueled concerns that the $75 billion plan will fall far short of its goal to help up to 4 million delinquent homeowners.

The number of troubled borrowers currently in trial modifications rose to 697,026, up from 650,994, a month earlier...."

The rest of the article is here:

http://money.cnn.com/2009/12/10/news/economy/permanent_loan_modifications/index.htm?cnn=yes

My experience with mortgage modifications is that they are not offered until the homeowner is, literally, on the verge of bankruptcy. Then the banks wonder why these financially devastated homeowners can't keep up with what, in reality, is still not a deal which reflects the reality of current economic circumstances. The banks want your last dime (and they want you to beg and plead for money from your family, friends, and neighbors) before they will offer you a deal that they know won't work!

The reason is sheer, ruthless greed.

So what else is new?

- Ed Smith, Publisher
The EHS Letter Manual