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The Wells statement and the '50% equal or higher payments than before' statistics seem to contradict each other.
But then again, if games are played with what a 'payment' is (i.e. mortgage vs. PITI, with vs. without late fees/penalties, etc etc), both statements could be correct.
186sacculinacarcini102.jpg
Crab = homeowner
parasite (white blob) = banksters
Of loans modified from Jan. 1, 2008, through March 31, 2009, monthly payments increased on 27% and were left unchanged on an additional 27.5%, according to a recent report by banking regulators.
The majority of borrowers who've gotten mortgage modifications have seen their overall principal balance go up, according to an analysis by CreditSights and ICP of about 660,000 mortgages modified this year. In about 90% of the modifications, the principal balance after a modification was larger, CreditSights said.
That's the situation facing Samantha and Steve Jensen. When the couple bought their $550,000 home in Scottsdale, Ariz., six years ago, they thought they'd found the perfect place to raise their three children.
But when their adjustable-rate mortgage reset to a higher rate, they could no longer afford the monthly payments that jumped by about $1,000 a month, to $3,300. So they were relieved when their bank in June offered to modify their mortgage by lowering their interest rate.
Under the modification they were to pay $2,600 a month — but then they discovered they also had unpaid property taxes. Once the bank added taxes to their principal, they say, their monthly mortgage payment grew to $3,500. They got a modification in June and are now two months behind on their mortgage payments and facing possible foreclosure.
"The bank could have done more and reduced our principal," says Samantha, 40, a special education teacher. "You have the anticipation of relief and then you realize it's not going to make it better. It's like being punched in the stomach twice."
But when their adjustable-rate mortgage reset to a higher rate, they could no longer afford the monthly payments that jumped by about $1,000 a month, to $3,300. So they were relieved when their bank in June offered to modify their mortgage by lowering their interest rate.
Under the modification they were to pay $2,600 a month — but then they discovered they also had unpaid property taxes. Once the bank added taxes to their principal, they say, their monthly mortgage payment grew to $3,500. They got a modification in June and are now two months behind on their mortgage payments and facing possible foreclosure.
"The bank could have done more and reduced our principal," says Samantha, 40, a special education teacher. "You have the anticipation of relief and then you realize it's not going to make it better. It's like being punched in the stomach twice."
More than 80% of loan modifications that Wells Fargo has done in the past three months have led to lower payments for borrowers, but most involve rate reductions, the bank says. Wells Fargo has done more than 240,000 modifications, and more than 30,000 of those have been under the Obama administration program.
At CitiMortgage, about 92% of modifications involve reducing rates, lengthening terms of the loan, or both. About 8% provide principal reduction.
At CitiMortgage, about 92% of modifications involve reducing rates, lengthening terms of the loan, or both. About 8% provide principal reduction.
But then again, if games are played with what a 'payment' is (i.e. mortgage vs. PITI, with vs. without late fees/penalties, etc etc), both statements could be correct.
186sacculinacarcini102.jpg
Crab = homeowner
parasite (white blob) = banksters