Seeking Advice for a Problem with Loan Modification

Updated on May 27, 2010
M.B. asks from San Jose, CA
21 answers

I need advice or recommendations from anyone who has faced this problem or may have some insight for me, or from someone in the legal profession that can help with my odd problem. I entered into a loan modification (or thought I was entered) in November 2008 and now my lender is saying that they do not recognize that loan modification and I have to enter into a new loan modification that ends up being more money than my original loan. Plus it now makes me way late because they cancelled/or are not recognizing the first modification and they only applied the first payment that started December 2008 and returned the other two amounts. I tried a Hud approved counseling agency who then called the lender with me on the phone but the lender basically told the counselor that I have no choice but to enter into the new modification. I am so upset at this situation and feel like I have no choice but sign the new loan modification because now I could lose my place. I really want my bank to give me an answer as to why they are suddenly not recognizing the first modification but they all say they don't know. One person actually said they don't even see it on file, but then retracted. My father said that maybe they didn't record it and are trying to get out of it. Any advice would truly help. I have called my lender several times, talked to the bank managers in Loss Mitigation etc. to no avail. This modification starts on May 1st but they added the back payments to the total amount so if I sign and try to sell there is no way I would get that much for the place.

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So What Happened?

I just wanted to first truly "Thank" all the fantastic advice that I received on this site. I first and foremost learned that I was not alone and that a lot of people have gone through the same thing that I have or a similar situation and not to give up hope.
Anyway, first I got advice from a Real Estate Attorney and then I also filed a complaint via e-mail and a hand written letter with every State and Housing agency you can think of. I was thinking that it probably wouldn't go anywhere but it made me feel better. I sent out letters to The Housing Departments, Federal Loss Mitigation Department and the State Controller of the Treasury, Department of Housing etc.
Lo and behold about a month later a Representative from my Bank calls from the North America Corporate office and says that she is calling on behalf of the State Controller of the Department of the Treasury that controls banks. She told me that was a Loss Mitigation Manager from my banks Corporate office and that she would like to talk to me about a loan modification. We immediately worked out a loan modification and went back and forth a little for about two weeks. I still didn't not receive the great offer that I once had but I did get a better offer than before with a fixed rate and 1.5% interest for the first 5 years and 4.85% after. This will help me until I am at least able to sell next year or so. The funny thing is that no one was able to tell me why they never recognized my first loan modification. My Real Estate Lawyer said that I really did have a valid case because I had proof of the modification etc. but it was going to be a little costly so I gave up that fight and went with the modification offered. Somehow my prayers were answered. This originally happened in April of this year, but I just signed the paperwork last month.
Advice to everyone, never give up. Somewhere out there is a solution or help or resources, you just have to find the right one. Be careful, there are lots of scams out there as well. Remember to be persistent and prayer works. Thanks again Mama Source Mama's for always sharing your stories and idea's and resources and referrals. Keep them coming.

Featured Answers

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A.P.

answers from Sacramento on

Hi M.. I know a person who is a real estate consultant. She helps people negotiate with banks, though she is not an attorney. I recommend giving her a call just to talk, even if you don't want to hire her office...she does not charge for a phone call and she may be able to guide you. Her info:
Jenica Horn
Real Estate Consultant
Licensed Broker, Lic #01729459
Office: ###-###-####
Cell: ###-###-####
Fax: ###-###-####
[email protected]____.com

1 mom found this helpful

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K.H.

answers from Dallas on

wow!!!!! i'm in your boat, but i assume you got yours resolved i'm about to read all the responses to see what was your outcome. i been fighting this fight since nov.2009 keep getting denied the hamp program and the in house now we are 2 months behind almost three but i do not want to tke my 401k money out to get t all caught up i have to pay that back out of my check from work which i need every dime... i just needed a little help for a month or two... i already requested some of 401k money but waiting on it to arrive..this shouldn't be this hard. we cant refi or anything just stuck with a depreciating house only 4 yrs. old barely

2 moms found this helpful
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T.Y.

answers from Sacramento on

M.: First I am not an attorney. I am a paralegal in a personal injury law office but may know an attorney who may be able to give you legal advice. However, immediately upon reading your request I hope you have some letters either that you wrote to confirm your agreements made in November or some notes written down from your conversations had. If you do, I would still send in the payment as originally agreed to with copies of proof and let the bank tell you they are not accepting your money. The next thing I would do is contact another head supervisor above the last supervisor you spoke with asap and get them to tell you what they show. Do you have names of the loan officers you spoke to? That helps because it puts the bank people on the line for making "agreements" not shown. What floors me is that you did not receive any new documents to sign for the May 1 modification date.
If you do not have any proof in letter format, send in your old payment and start documenting every possible call in writing.
I don't understand the back payments added unless they are only "tacking" the difference owed rather than actually modifying the loan.
If you want to discuss more, you can email my personal address at [email protected]____.com too.
Good luck!
T.

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A.T.

answers from Stockton on

The CA Bar Assoc. referred me to Visionary Home Builders in Stockton. www.visionaryhomebuilders.org You will have to fill out some forms and wait for an appointment but they can help you for the cost of a credit report $20 per person.
Also, try calling a mortgage attorney - get a referral from a Realtor if you know someone. If you live in an area where the home values are under water you lender is being really stupid - they'll never sell your place for what you owe on it.
Hang in there & good luck!
We're doing a loan mod ourselves and it is taking FOREVER and the collections dept keeps calling us because all of the payments I've made are sitting in limbo until the paperwork is done.

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S.B.

answers from Redding on

Dear M.,
Don't sign anything just yet. Hopefully you have all of your paperwork and conversations documented. EVERY SINGLE TIME you speak with your lender, document the date, the time, the name of the person you spoke with and a synopsis of the conversation.
My friend is going through this exact same thing. We are going to stay with her this weekend and I'll try to find out her status and who her lender is. (I wonder if it could be the same one).
She was told she never filed a loan modification, then she was told by someone else it was denied because she didn't earn enough money, then she was told they were raising her mortgage payments by $300/month. She got so fed up that she told them she wasn't giving them another dime and they could just foreclose on the house for all she cared. She has way too much invested in her house to actually mean that, but she was that upset. She documents everything, so I'm not sure how she got it straightened out. I'll ask her this weekend.
Hang in there, make sure you have all the paperwork together, and definitely talk to someone in your area who knows how to help you through this.
Best of wishes!

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V.C.

answers from Sacramento on

I have not had that problem, but it sounds like you are getting the raw end of the deal. I don't know where you live, but I'm in the Sacramento area. On the channel 13 news they have a segment called "Call Kurtis". He is a consumer advocate and will try and help people with seemingly impossible situations like yours. Sometimes, faced with negative media publicity, companies will work harder to fix problems. Just a thought!

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L.C.

answers from San Francisco on

M. ~
Go to the ACORN housing website and check out the information on loan modifications. It is a free service and the forms are very easy to fill out. The are in all states, just look up your state, county and you will find someone that will help you. Let me know if you need help in Santa Clara county.

Lucy B.

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L.G.

answers from San Francisco on

I have a few contacts at a great HUD approved Loan Modification company. The have a real estate Attorney on staff that does all of the negotiation and mitigation for the cleints.
They have a great success rate of actually being able to reduce the principle balance to about 65%.
They are:
Distressed Property Solution Center
www.distressedpropertysolutioncenter.com
They recommend working with Dan Tanguay.
Good luck. I'm sure there is a solution for you.

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J.H.

answers from San Francisco on

Hey M.,
So sorry to hear about your loan pickle. I truly hope something works out soon to your advantage. Anyways, I just wanted to suggest that you get a small notebook or something and keep all the dates, #'s, contact people you spoke with, details, etc. organized in once place. This might help you as it starts to get really confusing when you've spoken with multiple people and you're getting conflicting information or simply going no where. Best of luck to you!

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G.R.

answers from San Francisco on

This sounds illegal and there are state agencies where you can lodge a complaint, but that would take more time than you have right now. I would call some of the TV stations that do consumer protection segments like 7 on your side ( ###-###-####); Channel 5 Helps you (888-5helpsu) or Channel 4 (contact 4 program).You'd be surprised how soon some of these companies can change unreasonable and inflexible positions when the glare of publicity is focused on them.

1 mom found this helpful
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J.H.

answers from San Francisco on

don't sign ANYTHING, talk to a real estate attorney. good luck!

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L.M.

answers from San Francisco on

Hi M.. At this point you should present any documentation from the firt loan modification and all current documentation for the new loan modification to a real estate attorney specializing in loss mitigation or loan modification. Let them guide you as to how to proceed. They may require an upfront fee (research an attorney with a good track record). Typically, lenders respond to attorney inquiries in fear of possible litigation. Good luck.

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L.M.

answers from San Francisco on

Hi M.,

Keep your chin up and don't give up!

Do you have anything in writing from the first time they agreed to loan modification? It must be in writing! they can tell you anything, but unless it is in writing it's useless.

I am a realtor in San Francisco. My email address is [email protected]____.com and my phone number is ###-###-####. If you want call me, I can go through the phone numbers that I have researched that might be of some help. I'm hearing this a lot from home owners. The banks seem to be doing whatever they want to do--they just don't have the manpower or skills. It's frustrating!

Who is your lender? Not all of them are recasting or offering the loan modifications.

I have a big rottie too! And was a single mom--I know it's hard, but stay strong! good luck!

L.

C.C.

answers from Fresno on

I asked my husband, who is a real estate broker, and he said that right now, banks are just doing whatever they feel like, unfortunately. He said that if you're getting nowhere with your lender, contact a real estate attorney (ask a realtor for a recommendation). Sure, you may have to pay some legal fees, but the lawyer will be able to make some headway and will most likely be able to keep you in your house, which is the goal. Good luck to you!!

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L.B.

answers from San Francisco on

Do you have any documentation of the terms you were given for your first modification? They must have sent you something telling you what your new rate/payments were. That is just ridiculous that they are trying to get out of it, or don't have a record of it! That is terrible!

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M.T.

answers from Sacramento on

M.,
First of all you need to do your homework and check to see if the company is legit. If you would contact the Dept. of Corporations who regulates them. See if they have a license. Did you know that you should not pay any money up front and not until the work has been done.

You really should contact your lender for help and be firm with them.

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W.M.

answers from Sacramento on

M.
What ever you do, don't hire a loan mod company. Do you have any documentation of the original loan mod? I have learned several things as of late the hard way. A mortgage company will lie their butts off to get what they want, and they are refusing to comply with the bill that O'bama wrote. Maybe you could get a free consultation with an attorney, and see what they say. WE made the mistake of hiring a loan mod company, and it turns out they have no business liscense, and none of these companies can do anything that you can't do for yourself, you just have to be persistent. I hope all works out for you. WE finally claimed bankruptcy to get out from everything, and so we can move on. We no longer had a choice.

W. M.

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K.A.

answers from Fresno on

Hi M. -- we, too, are pursuing a loan modification due to a significant loss of income from my husband's job as a result of the economic downturn. We have been pursuing it for months but have just now made headway, thanks mainly to Obama's new homeowner relief package -- http://makinghomeaffordable.gov/
You may qualify to modify under the terms of this plan (and modifications will get your payment to 33% of your pre-tax income) -- the stipulation is that your loan has to be backed by Fannie Mae or Freddie Mac (which most are...) and your lender has to be participating in the program. If they accepted any federal money, they are REQUIRED to help lenders. Hope this helps.

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S.J.

answers from San Francisco on

Hi M.,

I am a fellow mom and a mortgage broker. Are you able to refinance? Do you have any equity in the house? Rates are very low so you may be able to save money versus paying more than your original loan through the modification. Feel free to give me a call. S. Johnson (o) ###-###-####

GOOD LUCK!

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K.H.

answers from San Francisco on

Hi M..
As a Realtor, a Loan Agent, and a homeowner, I absolutely understand your frustration. Please know you are not alone and there are services who may be able to help you.
My first inclination is to say, the 'lender' you are dealing with is actually a 'loan servicer'. This means they most likely bought your loan (in a giant package of other loans), and may not have any clue about who actually originated the loan, etc.
1st step> go to this link to find out if your loan is owned by Fannie Mae or Freddie Mac: http://www.newvintagehome.com/default.aspx?pp=109181
If it is, there are specific programs recently put into place to assist you. Other programs may be available if the loan is not 'owned' by the aforementioned. With this info 'in hand' --
2nd step> Contact Jaime Angulo of the Neighborhood Housing Services of Silicon Valley: ###-###-#### x 225 or by email: [email protected]____.com It is a not for profit organization who is there to help.
Good luck, M.. It's a stressful time. Keep your chin and retain a positive attitude, you will find your way. AND, good for you for continuing to look for an answer and just throw in the towel!
My best,
K.

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C.M.

answers from Chico on

I'm SO sorry! This happened to us too and we ended up selling our house under duress and made about $3k after paying the realtor and all the title co. fees. It really irritates me because we should have made enough on the house to put down on a larger home for our family. I will be praying for you and watching to see what advice everyone has to offer you.

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