Rant: Loan Modifications

I go on a little rant about loan modifications. Why? Cause they (for the majority of people who apply for them) DO NOT WORK! I deal with a particular aspect of the loan modification process in this video: the facts that : 1. Most banks will not consider a loan modification until the homeowner has missed at least one payment, and 2. That the foreclosure process still goes on in the background, even if you are applying for a loan modification. Most loan modifications take a very long time- several months. So while a homeowner is waiting for the possible (although not guaranteed) approval for the loan modification, the clock for the foreclosure is counting down. In California, the bank allows you 90 days (3 months) to make up your payments if you fall behind. After that, they can schedule a trustee's sale to foreclose on your home. If you are in a loan modification application process, and a trustee's sale comes up, they will postpone the sale date, but not remove it. WHY? WHAT IF THE ANSWER IS "NO"???? If the homeowner is not approved for the loan modification, where does that leave them? With a foreclosure date that is already scheduled. They won't postpone it next time, because the homeowner has been declined for a loan modification. The "counting down" until when a bank can foreclose on a home should be STOPPED if someone is trying to do a loan modification. Postponing the foreclosure date doesn't help- because if the loan modification is approved, the homeowner gets out of default and the foreclosure process is cancelled. If it is not approved, the homeowner is stuck with a pending foreclosure date. NOT COOL BANKS.