People are getting loan modifications that are unrealistic and some even make their payments higher!  As a real estate agent I see many home owners having to short sale their house for less than what they needed their loan modified to.  So the banks are getting less money not counting the money they pay out in RE fees, excise, repairs, etc.   When they could have done a loan modification for the current owner and saved tons of money and trouble!     It would keep families in their homes!!