Do any of these new foreclosure mediation programs passed on state and local levels even work? The National Consumer Law Center says that there is no data to support any claims that these programs have made any substantial affordable modifications. NCLC, just came out with a report where they reviewed 25 foreclosure mediation programs in 14 states.
Our review of the status of foreclosure mediation programs has shown that there can be a danger in viewing them as an alternative to legislation that directs servicers and mortgage holders to make affordable loan modifications.
Despite the potential to do so, the existing foreclosure mediation programs have yet to establish that they can exert any significant control over servicer conduct.
In other words, they really aren’t working. If you’ve attempted a loan mod, you probably already understand this first hand. We handle many short sales that were once loan modifications. Why don’t they work? Well, there really hasn’t been any effort that can force real change. It’s sad that many families continue to experience a failed loan modification, but there are other options.
