HUD trying to Mod Loans. Banks need to step up.

Listen to this NPR interview interview of HUD Secretary Shaun Donavan. I think it shows that the Federal Government is providing a path for Banks to modify loans. But it will take effort from the Banks to recognize that loan mods work for them too.

Here is the whole article: http://www.npr.org/templates/story/story.php?storyId=111436558

I'm convinced that mods are a better solution than foreclosure for struggling homeowners. But I'm not convinced that homeowners walking away from their homes because of devaluation is the wrong thing in all cases.

The Secretary comments, "where will they go?" and "their homes are more than homes..". I get it... Homeowners lives are centered around their homes. Schools, friends, kids, all that stuff.

We need banks to step up and increase the number of loan mods they are doing. We need them to loosen their criteria for mods. And at the same time we need the federal government to step up and put some more of the stimulus money to work to provide more mods and incentives for the banks to participate.

Let me know what you think...