Don’t Assume Trial Loan Modification Payments Will Save You

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, contact the congressman and senators in your state. Presumably, you are a registered voter, and one of the responsibilities of a legislator is to resolve constituents’ issues.

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!



Loan Modification for WHO?

Loan Modification for WHO?

This week I called many people in Massachusetts who have gotten the “demand letter” from the bank which is one step before the “Service Member’s Civil Relief Act of 2003″  in MA which comes just before the official “notice to Foreclose”.  Confusing?  YEAH – and every state process is a little bit different!  I called because I know that people have questions and I have a LOT of answers, so maybe I can get a little extra information to them that they didn’t know so they can make the right decision for their family:  loan modification, short sale, foreclosure, bankruptcy…..????  WHICH ONE IS RIGHT???

First of all I got many disconnected phones and then every once in a while I got a live person.  I got all sorts of responses on the phone when I called, one guy said “What’s this about, if it’s about a short sale, I’m NOT DOING IT!  IF someone wants to offer me what my loan is for, I’ll consider it” WHAT? What kind of sense does that make if the loan is for $250,000 and the value of the house is $180,000?  (This guy was either in denial, really pissed off at his bank, mad that I called him, or something??)

A couple of people told me that they got they were working on a Loan Modification and 2 told me they GOT their loan modification.  To that last group of people I said “Make SURE you keep submitting all the paperwork that the bank wants and keep up with the payments because technically, at the

Calculator and money

beginning of the loan modification, a homeowner is essentially on a “probationary plan” to prove themselves before the final plan comes through and at any point the bank seems has been known to deny the loan modification!”

If this above information isn’t enough for a homeowner to proceed with caution, check out the video below that was first published back in February 2010 and see WHY the banks BENEFIT MORE from doing a short sale or a foreclosure rather than doing a loan modification.  (Beware, if you are at all like me, you’re about to be really pissed off where your tax dollars have been going!)


Now, if you have questions about your situation as to whether a loan modification or short sale is right for you, CALL ME at 603-318-6953 or e-mail me right now at DKruzel at

Please seek legal advice.  This information is for informational purposes only.

How’s that HAMP Loan Modification Program working out for you?

How’s that HAMP Loan Modification Program working out for you? - reposted with permission from Katerina Gasset

from Wellington, Florida

Here is the utter stupidity, disconnect and total disregard for the homeowner in the HAMP program- HAMP loan modification program is a bust

If you live or own a home in Florida- not so good I would say. While there are the very few that get their loan modifications approved most do not. The numbers just don’t work.
We just listed a very nice home as a short sale. This was not a happy day for our seller. He wants to keep his home but no longer can because of the total – I don’t even know the word to call it- of the servicer- the bank where he pays his mortgage payment to.
His payments were $2600 per month. Due to this economy and the resulting loss of income in his business he could no longer afford the payments of $2600. So he asked to have his payments reduced through the HAMP loan modification program.
That was 9 months ago.
So the bank tells him that they are processing his loan modification and approves him for a trial modification with payments of $1700 per month. He makes every one of those payments. He is on time with every one of those payments.
Now, they come back, 9 months later and tell him his loan modification has been declined.
He wants to know why, well, because he does not have enough income to qualify. Well, he wonders, why is that when he just proved for 9 months that he can make the payments and did make the payments and was never late in any of those payments.
Because of red tape, bureaucracy, total disregard for circumstances, total oblivious to reality and utter ignorance with the most stupid determination to only follow guidelines that have nothing to do with reality. The saddest part is that I can tell you whether you will be approved based on your financials in ten minutes or less! How come it takes 9 months for a bank who is in the business of numbers to tell you that you don’t qualify based on your income! It’s not rocket science to take a calculator, add up your expenses then subtract that from your income.
But that is not even the kicker in all of this!
Guess what happens next!
They give him the big news! He is NOW IN DEFAULT! How’s that for a thank you for applying for our great HAMP program, and oh, by the way, not only are you NOT approved you now owe us ALL the money- Your whole loan is NOW due! WOW!
He wanted to keep his house so he took the steps he was told to take only to get the short end of the stick at the end of the day.
Nearly in tears he now has to sell his house as a short sale in order to avoid the foreclosure stain on his self, credit, etc. This did not have to happen. He is a casualty of doing the right thing.
by Katerina Gasset

If you need information regarding your situation, please call Debbie at 603-318-6953 for a confidential phone interview regarding your options.
Please seek legal advice.  This information is for informational purposes only.