There are several challenges coming up with a comprehensive approach to the
short sale or loan mod process for the consumer. The problems range from the
lack of co-operation from the servicers in a targeted approach by the
government
(HAMP) to the lack of any structure in the loan servicing community (they
are disparate in thinking). Each loan servicer is dealing with their
individual portfolio in their own way and addressing different concerns i.e.
prime, sub-prime, fixed, ARM, having to first consider the way the loan may
be broken up and currently held (through a securitization) and or weather
the property has additional liens (that would be require additional
approvals to subordinate or relinquish rights). These facts are compounded
by the fact that the government itself is not demonstrating leadership by
successfully implementing their own policies through existing government
owned entities FNMA/ FHLMC (which account for $5.1 Trillion in mortgage
backed securities; roughly one half of the total market). There is no easy
answer here and it is a weight on the entire economy. You can see by the
links provided below that this situation is now growing in magnitude with
little or no help in sight for the consumer.

http://www.msnbc.msn.com/id/37232151/ns/business-real_estate/

http://www.cnbc.com/id/36855516/Geithner_Slams_Loan_Servicers

The top four loan servicers are pushing people to walk away
(see below link)…
http://www.cnbc.com/id/37195628