INTEREST ONLY LOAN MODIFICATIONS-NOW THERE'S A DUMB IDEA

Can something come full circle when it's still spiraling out of control? I just saw this this article: click here . It seems that Chase Bank is lobbying to get approval to do Interest Only Loan Modifications. Maybe it's just me, but aren't interest only loans part of the reason our homes are worth about 1/2 of what they were. This assuming you are actually still in your home.


My personal assumption is that none the TARP money given to banks was used for intelligence testing. Loan modifications don't work. They are a band-aid on an amputation. Well over 50% of all mods end up back in default within a year:




So what could possibly possess one of the largest mortgage banks in the world to combine one of the worst loan features ever to grace the pages of a promissory note with one of the least effective ways of dealing with the foreclosure market? Well, I didn't get any TARP money, so far be it for me to assume.... but mayyyyyyybe, it's because by making the modifications seem like a better idea to the client,the client will move forward with one. And by doing so, that loan is taken off of the bank's delinquent loan list. There by making the bank appear healthier. I'm just sayin'!!!