Mortgage Loan Modification Reality Check

We have had clients who have contacted their mortgage lender and have been told they were not eligible for a loan modification because they were current on their loan payments.  So, after three months of missed mortgage payments they contact the lender again and are then told they are not eligible for a loan modification because they are behind on their payments.

Similarly, lenders will offer to send the homeowner forms to complete as part of a loan modification program.  They do so and wait, and wait, and wait to hear back from the lender.  Finally, they contact the lender after another three months and are told that the information on their forms is stale as being three month old information and that the lender needs more current information to evaluate the request for a loan modification.

Additionally, we have had clients come to us days or weeks before a foreclosure sale is scheduled and say that they have been working with the lender for months and that the lender promised the client that the lender would modify their loan so that the foreclosure can be stopped.

It’s all one big lie.  Loan modification is arguably a fraud on the American public.  The reality appears that the lenders have absolutely no intention of helping people save their home from a foreclosure sale.  The lenders appear to be helping you but the reality is they are just stringing you along until the sheriff’s sale is complete. Lenders seemingly have found it more profitable to foreclose than to work with you in saving your home.

In fact, according to Consumer Bankruptcy News, a trade publication for bankruptcy law practitioners, “the actual number of homeowners who have received final, five year loan modifications through the program administered by the U.S. Department of the Treasury stands at 168,708” out of an estimated 7 to 9 million families who were forecasted to benefit from the Home Affordable Modification Program (HAMP) as of May 2010.  This means approximately 2 percent of the families that apply for modifications actually get them.

Chapter 13 bankruptcy can solve your problem and make it possible for you to pay your mortgage arrearages over a five-year period along with your current house payment.  This is a real solution to your problem that is court administered and actually works to help families save their home. We assist people in filing both Chapter 7 and Chapter 13 bankruptcy.  Feel free to call for a free consultation and we will do everything we can to help you protect your rights.

Call 937-275-7170 or TOLL FREE 1-800-789-7170 or complete our online FREE Consultation form today!