Banks were quick to write and foreclose mortgages but slow to modify them.

All the usual players - Bank of America, Wells Fargo, GMAC and Litton Loan Servicing are implicated in this article which describes poorly trained and overwhelmed staff on both sides of the mortgage transaction resulting in bureaucracies that sloppily document a loan application and are challenging to work with for a loan modification.  I have been working with bank loss mitigation departments for 15 years and this has always been a problem, the only thing that has changed is the number of people experiencing the lack of concern and incompetence of these large companies. 

Loan servicing does not make any money for the banks and accordingly they do not devote sufficient resources to the needs of their customers.  Typical scenarios include overseas call centers with customer service representatives that can only read from a script to poor notes in a file to documents that are lost and files closed prematurely.  The result is a system that works slowly and poorly at a time when homeowners need it to work quickly and efficiently to keep their property out of foreclosure.  An attorney experienced in working with mortgage lenders may be able to help you obtain a loan modification that keeps you in your home.

The Federal Home Affordable program has options for borrowers who are current and in default of their mortgage loans.  It makes sense, however, to discuss the different options available so you can understand whether loan modification is either likely or, if obtained, will address your financial concerns. A loan modification my be a long or a short term solution to your situation, but is often is not the only approach for a stretched homeowner. 

Loan modification, in the long term, often provides only incremental or marginal relief for a homeowner.  If, because of a loss of income or new expenses your house is no longer affordable without significant payment reduction, it may be time to consider a short sale or other option before foreclosure is imminent. 

For my entire legal career I have counseled clients in danger of losing their homes and helped them identify pre- and post-foreclosure options that help them reach their goals.