Making Home Affordable: Your Mortgage Loan Modification Questions Answered
Many of the banks that received federal funds for home modification are not using the funds as intended. If you are considering home modification because you have lost income and your current mortgage payments are too high, be very careful. Very, very careful. Many banks are moving ahead with foreclosure while clients are paying trial home modification payments in good faith. Be very careful to make sure that your bank is handling the modifications as the federal government intended. There are hundreds, if not thousands, of customer complaints about different banks on Complaint Board and Ripoff Report. There are also complaints on My Loan Modification Center.
The banks with the most complaints include IndyMac, Bank of America and Wells Fargo. All of these banks received substantial federal bailout funds in the hundreds of millions. People complain about the following problems: Bank offers to start home modification, and customers fill out paperwork. When customers checks later, bank cannot find the paperwork. Customers told they had an approved home modification were then soon after told that was incorrect, and there was no modification. Customers call, and are treated disrespectfully and rudely. Customers start a home modification program. They are asked to make three months’ of trial payments. The file is then reviewed for a final modification offer. Customers make payments and assume that they are protected. However, the bank continues to “age” the primary loan, and often moves forward on foreclosure even while the customer is making good faith and on time payments.
Payments made late and attracting a Notice of Default on completion of 90 days deal a very major harmful blow on the credit in the future. Thus it would affect your wanting to get into mortgage acquiring or refinance sanctions, applications for rent as well will also put a limit on your funds you have available presently. If it is deceit that has got you going late on your mortgage payments in a valiant attempt to save the home, getting on board a reputed Loan Modification Company would encourage your lender to cancel the negative information passed on to credit bureaus, simply by threatening to litigate.
Also an effective loan modification does not need the owner to default on mortgage payment to receive sanction. Hence you have hope that you can keep up your good credit score. The loan modification would just be the re-negotiation of the provisos of the mortgage you already have with the existing lender. It could be re-negotiated now for a longer term, a much lessened interest rate, or simply principle forbearance, the whole goal of loan modification would be to put in place a more affordable mortgage payment that would make the borrower comfortable in his current financial living setup.
If you are in a modification, check every few days on the status of your primary loan. Check on the loan modification. Send information in writing, including the bank’s internal mail system. Contact Making Home Affordable, and share information with the bank. Send the bank copies of Making Home Affordable policies. If you’ve been burned, file complaints with Complaint Board, Ripoff Report, your state Attorney General, the state Attorney General where the bank’s headquarters are located, the FDIC, and Making Home Affordable. Contribute to blogs. Make as much noise as you can. If a foreclosure notice is new, and there isn’t a sale yet, you may want to contact a well respected attorney to see if you can save your house. And, we need to push for a change in state and federal laws. The banking misdeeds range from mistakes to violation of policy and law, to outright fraud. And they must be stopped. The best way to stop bank misbehavior is through change in policy and law. We may well have a grassroots citizens’ movement rise out of the finance industry’s terrible misuse of power.
Learn more about Obama Mortgage Relief Plan Qualifications.
