More banks do seem to be stepping up their HAMP and their non-HAMP (HAMP news) modification efforts. But it remains a slow, paperwork-driven process that generates anxiety all around.

For Bank of America (BAC), the problem is compounded in part by the sheer volume of troubled mortgages (mortgages news) it inherited from Countrywide (Countrywide news), which really aggressively marketed mortgages that weren't likely to withstand much stress.

The view from the modification trenches in Florida is not pretty. The St. Petersburg Times notes the Florida Attorney General's Office has fielded 486 complaints about Bank of America--more than it has about any other lender (lender news). "Many of the gripes are from homeowners who have been unable to get modifications despite repeated contact with customer service reps who lose paperwork, give conflicting information or ignore them altogether."

At the same time, property values continue to fall, and even those who successfully modify their mortgages have little guarantee they can stay current. Some have criticized Bank of America for not going farther with modifications. The banks say that reducing interest rates and extending the life of the loan are the most effective tools. The best solution of course would be rising property values. That can't be counted on yet.   

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