Does Loan Modifications Work?








    Well the answer here is simple NO!  Not in the current form.  Until the issue of equity reduction is addressed the answer is no and will remain no.  People are going to continue to walk from their homes until the equity reduction issue is addressed.  If it is going to take 5 to 7 years for your home just to get back to the value you purchased it for then it just becomes a business decision.  So ask yourself, what is the answer? 

  How about this, why don’t we go back to using licensed qualified appraisers that are familiar with the area and properties for which they work.  Also eliminate the fear of the AMC’s for appraisers.  This is why I continue to push the HR 3044, the reversal of the HVCC appraisal process.  The AMC’s continue to send appraisers to appraise properties that they are not familiar with.  How can this be?     

  The HVCC in its current configuration is doing more damage that good.  If we bring back the licensed appraisers and let them do their jobs then we will see values begin to rise again over time.  The HVCC has put many licensed appraisers out of business that have spent several years building their business.  It is hardly fair to the appraisers that have spent so much time building their businesses only to have Congress put them out of business over night.  Until equity reductions are addressed or we value real estate correctly we will remain a dog chasing its tail.

Link to HVCC petition –


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