Group urges more balance reductions as foreclosures outpace fixes. (article link)
“Currently…only one in five loan modifications reduce the loan amount, and the vast majority of loan modifications actually increase the loan amount by adding servicing charges and late payments to the loan balance,” said the group’s report.
http://ecreditdaily.com/2010/07/watchdog-urges-mandatory-mortgage-principal-reductions/
"The watchdog that oversees the effectiveness of the government’s bailout programs again urged the U.S. Treasury to make either discretionary or mandatory a program to rescue borrowers from foreclosure through mortgage principal reductions."
