New Study from Bankruptcy Attorneys Says that Loan Modification Programs Not Working.

The National Association of Consumer Bankruptcy Attorneys (NACBA) issued press release HERE saying that new study shows loan modification programs are not working well. From their press release:

• "Less than 10 percent of the time do the voluntary programs result in a reduced principal loan balance with more than half of modifications capitalizing unpaid interest and fees into larger and more drawn out debt on the back end of the mortgage; and

• Only about a third (35 percent) of voluntary mortgage modifications reduce monthly payment burdens for homeowners, with nearly half (45 percent) actually saddling distressed homeowners with increased payments under the modifications."

Link to December 08 update to original study done in August 08 is HERE. (Link within this document will take you to the original August study).