Don’t assume on-time trial loan mod payments will save you
BY BENNY KASS, TUESDAY, MARCH 29, 2011 – Published at Inman News
DEAR BENNY: I am having problems with my mortgage. I fell on some hard times lately and fell behind on my mortgage payments. My mortgage lender has been dragging this out for over a year. I have been set up on two separate trial payments and made them both with no problem. Now my loan has gone into foreclosure. The lender keeps telling me that I am under review. Can you tell me what options I have to try to keep my home? –Hodges
DEAR HODGES: During the recent winter season — with snow and lenders having legal problems when they did not have the original promissory note — the foreclosure rate throughout the country fell. However, with spring on the horizon, lenders are back to foreclosing.
Unfortunately, your situation is all too familiar. Lenders arrange payment plans, whereby the loan is modified, and even if the homeowner is diligent in making the requirement payments, suddenly the lender issues the foreclosure notice.
Communicating with lenders is often next to impossible. You have to call a phone number, and if you are lucky, you will finally get to talk to a real, live person. But that person often has no real authority, and if they see that you are now in foreclosure, you are told to talk with the attorney handling that procedure.
And if you can finally get to talk with the lawyer, he/she tells you that you have to discuss your situation directly with your lender.
It’s time to stop this merry-go-round called “chase the lender.” Here are a few suggestions:
First, if your lender is a national bank, contact the Office of Comptroller of the Currency and file a complaint. This is a federal agency that regulates national banks, and banks must respond to the OCC on any complaints within 10 days.
Next, see if your state has any foreclosure-relief programs.
Finally, if all else fails, see if you can arrange a short sale, so that at least you won’t have a foreclosure on your record.
Thank you, Inman News, for providing this much needed information! If you are in a similar situation to this homeowner or if you are sick of your loan modification terms because they’re not working for you, contact me at 603-318-6953 so you can learn what other options you have! I have helped many many families over the last 3 years and can get your questions answered too!