The Minnesota Home Ownership Center, and it's network of Foreclosure Prevention Counselors, hears from clients on a daily basis about the difficulties they are facing when working with their bank... that many times a loan modification doesn't 'modify' the loan enough to be affordable in the long term.
There is a lot that goes on "behind-the-scenes" before a bank is able to modify anyone's loan. The Consumer Law and Policy Blog published an interesting article on Monday about the difficulties banks have when modifying loans when there is more than one lien holder (more than one loan) on the property. The article, entitled "The Second Mortgage Problem - Banks Holding Out" is here.
Working with a bank to obtain a successful loan modification is not easy, but the Center's network of Foreclosure Prevention Counselors are VERY (VERY!) good at what they do. If you, or someone you know is struggling with mortgage payments, and think that a loan modification may help... don't wait (and don't EVER pay for help). The sooner you contact a counselor, the more options you have available. To find your local non-profit, FREE Foreclosure Counselor, click here. For additional information about avoiding foreclosure in Minnesota, click here.