I AM hopeful that these loan modification problems homeowners are having would get resolved quicker than expected, I am wishing that a magic pill would arise for all the pain a lot of homeowners are having. I still am getting a lot of homeowners in trouble not understanding the process, still a good number of homeowners not wanting to be told the truth and falling into the foreclosure scams that is still rampantly looming around defaulting homeowners. So I have decided to share some Q & A from some callers and some blogs online about all these loan modification problems.
Caller: I applied for a loan modification through my bank back in October 2010, as many individuals in these trying times, I find it harder and harder to make my payments. I’ve never been late!, always on time. I’ve sacrificed necessities simply to pay the mortgage, I’m self employed and find that might have been the one issue I was turned down for modification. Within the process of dealing with my bank has been extremely bumpy, I submitted all the forms required, they kept asking for documents I already sent, two, three four times. When contacting my bank via telephone (several times) the conversation starts out friendly, but ends up in a vicious cycle going nowhere, when requesting to speak to a supervisor, one is never available, and then asking for a return call from a supervisor ASAP, the call is never returned. Three times I was hung up on by my bank. Now nearly four long gurgling months later, I’ve been turned down. I’m not asking for a free ride, simply a little help to stay in my home. $75 BILLION DOLLARS was dedicated from the US government to help people like me in my situation, yet my bank slapped me and my family right in the face. I guess my bank would rather let my home go into foreclosure then lend a hand.
Ken Go: After doing an interview with this caller, I realize one thing when she was calling and submitting the documentation to her lender, she would send them one item at a time and then she does not follow up, thinking they would be just waiting on her paperwork to come in. Remember, there are thousands of people asking for loan modification, imagine yourself in the most crowded Costco with huge lines and only one counter to several hundreds of homeowners asking for paperwork to be processed. Each case is completely different from another. I suggested for her to gather everything and fax them all at one time with a confirmation date and follow up with a call the following day to make sure the bank receives them. She should be qualified for a rate reduction and I believe she makes the income herself to qualify for the amount of loan they have. Banks have to go thru a protocol and cannot just simple say yes or no to everyone.
Caller: I have applied for a loan modification and my lenders claim that I have over $2,000/mo surplus but they only look at gross income, not net. My “surplus” is the taxes I pay every month. They offered me a loan modification alright. Only it raised my monthly payment from $1,960 to $2,348 and increased my interest rate from 6.7% to 6.8%. Their response to all of my questions, “if you don’t like the deal, just reject it.”
Ken Go: this caller is only applying for a loan modification because he says he thinks everyone is getting help and he should too! He has no hardship and his property is not even upside down. He basically just wasted his time and his lenders time and now is paying his mortgage with impounds. His rate actually did not go up but remember I mentioned before if you call your lenders for help to modify, some will automatically impound your taxes and insurance to offer potential defaults in the future. Therefore, this homeowner is upset because he went ahead and really did something that actually got him to impound his taxes and insurance which is not what he wants.
Blogger : I think we all need to start a Class Action Suit against banks, they hurry to put you into foreclosure so they can get more money and fees at the end of the loan;
My comments about this: please read the LA Times September 25 a column stating “ Beware of offers to save homes from foreclosure” it will tell you to be very worried about Mass Joinder lawsuit as a way to avoid foreclosures. It will probably be better for you to judge this article from LA Times yourself. I have a copy if you want me to send it to you, please call me.
Caller: I paid a firm about $40,000+ in fees to modify my two homes and now I lost one and I am about to lose the other house. What went wrong? I don’t want to lose our owner occupied home.
Ken Go: This homeowner I have to say is 100% in denial of what is happening around them and they are just trying to take advantage of the system and got burned deeply. The couple makes over $180K a year, and can easily afford both mortgages with no problem what so ever. Can I use “Greed” to describe nicely why they went thru this situation? Because they really don’t qualify for a modification, they manage to find a shark who was waiting for a big fish like this one to come and ask for help. The shark then made promises that they will definitely get their loan modified because the lenders made some errors in their loan papers. They were also told to stop making mortgage payments in order to show their hardship. Sooner than later, the bank started to foreclose on one property then a bit later on both. Now, they are out of an affordable home and out a lot of money paid to these people? I really have a hard time speaking to people like this because they don’t like to hear “No” for an answer even if it’s the truth.
I recently just also spoke to a caller who has been calling me for a year or so, this person has been fighting with their lender because they think the banks did them wrong. They kept holding off on the payments unless the bank modifies them, but these homeowners actually do not qualify for a modification due to their debt mortgage ratio not meeting the HAMP guidelines which I have been telling them every time they call! Now the bank’s foreclosing on this house and there is nothing this person can do. If you don’t believe, at least educate yourself to what options you have and don’t just keep on trying to get an answer that only you believe in.
I strongly believe that the short sale process now which allows homeowners to get some cash at closing to help them move and relocate is about the best option instead of foreclosure.
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Please call Ken Go of 1st Innovative Finance at 562-697-7028 or write to This e-mail address is being protected from spambots. You need JavaScript enabled to view it for your loan modification, home mortgage and short sale needs.
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