An editorial in the New York Times today sheds light on what most consumer bankruptcy lawyers have known for months, current government subsidized loan modification programs are inadequate to stem the rising tide of foreclosures.  You can read the editorial online here.

In Arizona the problems are particularly evident.  Clients often come to us after having first been completely frustrated by lenders who are unwilling or unable to modify their mortgages.  Further complicating matters, many in Arizona have a first and a second mortgage, most often with different companies.  Modifying the two mortgages in a meaningful way is difficult.

Too often we see a bank tell a client to become late in order to qualify for a modification and then they do not return calls, put up unreasonable obstacles to modification, request documents, lose them, request them again. . . you get the idea.  Sadly, many of these homeowners then end up in foreclosure or bankruptcy.

For more information on loan modification or bankruptcy, please visit our website at, or If you live in Arizona, and want to learn more about bankruptcy, check out for the time and date of our next free seminar near you.