Loan Workout--the New Mortgage Channel? (The Deciding Advantage‪)‬

From the front page of the June 28, 2009, New York Times to friends struggling with keeping their homes, this loan workout dilemma isn't getting better. The New York Times says it's a paper shuffle that is swamping the process and drowning both the servicer and the borrower. Friends say trying to work with loan servicers is a lot like speed dating: You get three to five minutes with someone on the phone and then you start all over again from scratch. Even if these instances are considered anecdotal, most accounts direct their frustrations at known servicers that historically have had a responsive track record. And despite the best efforts of the very many servicers working on this, loan modifications and other workout options are hard to come by. Part of the dilemma is defining a "loan workout."