Loan Modification Pitfalls

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U.S. Loan Effort is Seen Adding to Housing Woes

The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good..............

....................desperate homeowners have sent payments to banks in often-futile efforts to keep their homes, which some see as wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some borrowers have seen their credit tarnished while falsely assuming that loan modifications involved no negative reports to credit agencies.

http://www.nytimes.com/2010/01/02/business/economy/02modify.html?scp=2&sq=mortgage&st=cse

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