What’s good for Geithner is good for Loan Modifications
October 12th, 2009 | by ratefix |The old saying went something like this: What’s good for General Motors is good for America. With the GM debacle I’m not sure how that applies. But I know when Treasury Secretary Timothy Geithner is happy, America is happy. Right now he is singing praises about the loan modification results as of late so it’s time to smile.
Mortgage payments are now being lowered faster than homes are being sold in foreclosure proceedings, according to Geithner, and roughly 40 percent of the 1.2 million homeowners deemed eligible have been helped.
“That’s an important shift,” Mr. Geithner went on. “Half a million families are participating in loan modifications that are substantially decreasing their housing costs.”
The general consensus is that while loan modifications save some homes, it will not end the foreclosure crises.
The same can be said for short sales and other options that will help many, but only a fraction of those in need.