Why won’t my lender work with me?
Staying current on loan payments and getting legal help might be smarter alternatives than trying to force your lender into a loan modification.
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Question: I would like to have more information about loan modification. I've been struggling for three years trying to negotiate with my bank, but have yet to hear back from them. I have copies of all the letters, emails, and a phone log with names, the times of my calls and other details. Can you please help? — Lili Later
Answer: Dear Lili, I can understand your frustration. Tracking your communications with the bank may be useful if there is an obligation on the lender's part to work with you in your quest for loan modification. Under the government's Home Affordable Modification Program, participation is mandatory for servicers of loans owned or guaranteed by Fannie Mae or Freddie Mac. But other issues surrounding your property may allow the servicer to not let you participate in HAMP.
In communicating with you about your situation, you mentioned that you can't afford the payments and that the loan is held by Fannie Mae and is serviced by another firm.
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I also learned that your home was built with defective drywall, which, along with the decline in home prices, has you in a $280,000, 30-year fixed-rate mortgage at 6.125% for a home that is now worth about $90,000. Not only are you upside down in the mortgage, but you've also stopped making your payments after getting frustrated with the bank's unwillingness to work with you to modify the mortgage.
I suggest you meet with a real-estate attorney sooner rather than later to discuss your options. The drywall issue may result in a settlement that will affect the value of your property. It's also possible that remedies available through the Home Affordable Foreclosure Alternatives program would be better for you than trying to force your lender into a loan modification.
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I'd lean toward having you get current on your loan payments versus wrecking your credit history because you're frustrated with your situation. But you really need to be working with an attorney on this matter.
Hi, i have 425 million dollars in my bank. You only need to borrow $40,000. Oh you have perfect credit and a great job. SORRY..... I CAN'T HELP YOU. This is why all americans need to stop financing anything and buy in cash to put these bankers out of business. I do it and the banks don't make crap off me. I win and they lose. Wake up you fools who have no financial discipline. It's all a big joke and a big game of chess. Educate yourselves.
What really caused our housing bubble problems?
It is easy to pick a lot of villains. The top pick is the US government. When the government subsidizes,
that always causes overpricing. We have a government policy of home ownership. Sounds good to the people and especially good to bankers and realtors, two of the most powerful interest groups in Washington. So the government subsidizes mortgages. Tax deductible loans. Then Fannie and Freddie in place allows Banks to make loans have Fannie and Freddie take them and make another loan. With out this mechanism the banks would be limited by their cash reserve.
The problem is not capitalism, but The Government Bubble machine. What ever US subsidizes causes a bubble and the people to suffer. Now the Government is broke and can't pay back what it has spent. The US taxpayers are on the hook. Sad. Poor government policy.
Banks need to accept responsibility for intentional writing Bad Loans. If the Banks could get off the cocaine
and curb their greed maybe things could improve. We all know that won't happen and the Banks will continue to write Bad Loans as long as Fannie Mae will buy them. Banks love Fees, it is easy money. Bankers are Lazy. They don't want to do all the work that is necessary to earn money the honest way. It is much easier for Banks to scam the system earning Fees. No Doc Loans, Stated Income Loans , Liar Loans all created by Banks in order to write Bad Loans to get more easy Fee Money. Banks know these Liar Loans are bad. They know these adjustable rate loans are bad. They know Bad Loans because the banks invented Bad Loans. Bad loans equal Fees. Banks love that Easy Money. Just pass the loan off on Fannie Mae and write another bad loan and get those Fees.
But you need to make them understand you will "NOT" vote for them in their coming reelection if nothing is done.
But, I would not hold your breath waiting for anything soon.
You walked into a lender's office, they said yeah, we will loan you the money, you have to put x dollars down and pay z dollars a month on th loan.
You said Okay.
Now, you don't want to pay, it. Why are you scrubs, telling the world?