Happy New Year to all you wonderful moms (& dads) out there. I just received a very disturbing phone call from a dear friend. After many months of working hard with a company they were just denied a loan modification. They are 3 months behind in their loan payments and are now stuck between the rock and a hard place. They have equity in their home but just don't want to loose it.............any suggestions??
Very, very, very few people get a loan modification. "Loan modification" was an Obama political scam. They will need to short sale the house or face foreclosure or pay the back pay immediatly.
Lisa
I received a loan modification through Fannie May and my mortgage company. It took A LONG time. I was 5 months behind on my house payment.
I now have a 4% fixed mortgage. They took the 5 grand i owed and put it on the end of my loan, and it dropped my payments almost 200$ a month.
My advice, is don't give up. Keep contacting your mortgage company and even if they don't tell you too, fill out the modification paperwork and re send it in. Keep bugging them. Go the to mortgage company's website, print off the paperwork (I printed them off and filled two different ones out and sent them both (a few different times)...I faxed them and also sent them in the mail).
Just keep on top of it, keep calling, bugging, and nagging. Hopefully, it'll pay off in the end.
This is a *nightmare*. There is no motivation for the banks to actually *grant* loan modification, even though they are required by law to consider people. VERY few people actually get it... and the banks are letting some people fall over a year behind. (The banks found a loophole in the law).
We were *perfect* candidates (in CH13 bankruptcy... our finances are not only a matter of record, but also laid out by the courts) and WE were denied after 5 months WITH attorneys pleading our case. Typically only smaller banks are even granting a percentage of people loan mod. Wells Fargo is one of the worst for letting people fall JUST far enough behind that there is no way for them to recover.
Have her GET a lawyer. Without ours, the bank tried to claim we had to repay it all at once. Our lawyer straightened them out on that one.. but it took him 4 more months.
The banks are being incredibly malicious in their treatment of people (my personal suspicion is that they have actuaries figuring out just how long they have to "consider" an individual while in deferment in order to take their home, but I'm jaded), and I don't doubt that class action lawsuits of them circumventing the govt are far behind.
Good luck to them. We did that for a year and then they just closed the account one day with no notice. My DH called every week for 14 months. After they told us they had closed the account one of the people told us it had been approved 8 months earlier but they keep terrible records and noone ever told us. We lost our house.
I have no advise except to maybe keep calling and talk to a supervisor.
These banks are terribly disorganized and really DO NOT care if you keep your house.
I am sorry for your friends.
My Dad just lost his home. I really wish you luck.
They may be eligible for a foreberance or a repayment plan where they add a small amount to their montly payment over the course of several months. If they showed a surplus in income modifications are usually denied. They fail to tell you that in the beginning.
